AUGUSTA – A bill that will align Maine’s tax code with the federal standards, lowering the tax burden for Maine’s businesses and individuals was passed today by the Legislature’s Taxation Committee.
The legislation, LD 1564, “An Act to Update References to the United States Internal Revenue Code of 1986 Contained in the Maine Revised Statutes,” was introduced to the Maine Legislature in response to changes the U.S. Congress recently made to federal tax guidelines.
The federal bill, “Protecting Americans from Tax Hikes Act” offers much-needed relief for businesses and individuals.
LD 1564 lets Maine’s small businesses keep more of their revenue which will allow them to make investments in their operations and expand and hire new workers. The legislation is strongly supported by members of Maine’s business community. It will benefit teachers by allowing them to deduct classroom expenses. There are tax incentives for homeowners, higher education, and low-income Mainers in the bill.
Maine Senate President Michael Thibodeau, (R-Waldo) said, “It is important that we adopt this tax policy for the long term, and not just make a temporary fix, because businesses and all Maine citizens need to know that we are serious about not raising their tax liability and, in effect, their cost of living here doing business.”
Tomorrow the bill will be referred to the Appropriations and Financial Affairs Committee which will take up the issue of funding offsets that it will require. It will then go to the full Legislature for a vote.