Income Tax Conformity

Legislators on the Taxation Committee are deliberating what recommendations to make concerning conformity with federal income tax changes affecting Maine gross taxable income (LD 2010).  NFIB is urging support of full conformity on Sec. 179 expensing, as proposed by Gov. Janet Mills, as well as her support of conformity on R&D expenses by small business.  Conformity and other tax matters are also being considered as part of the Governor’s General Fund Supplemental Budget proposal (LD 2212).

LD 2212 also includes an optional Pass-through Entity Tax (PTET), which could help interested taxpayers in lowering their federal tax liability.

Another key – and controversial issue – is the Governor’s proposed elimination of the Business Equipment Tax Reimbursement (BETR) program.  Hundreds of businesses still benefit from that program.  Some 25 companies accounted for 67% of the total BETR reimbursements in 2023, according to Maine Revenue Service data; 14 companies accounted for 50% of total BETR reimbursements.  Those larger firms are particularly concerned about the backdoor tax increase that could occur if BETR is eliminated.  All firms claiming a BETR reimbursement would experience a backdoor tax increase of some amount if the program is eliminated.

Supplemental Budget details: https://www.maine.gov/budget/

PFML Benefits – What Employers Need to Know

Over 900 people attended a recent MDOL-NFIB webinar about what employers need to know before Paid Family & Medical Leave (PFML) benefits begin May 1^st.  The video recording and slide presentation can be found in the “Employer Resources” section of the Maine PFML website.

https://www.maine.gov/paidleave/

New Bills for 2026 Session

Hearings and work sessions are winding down on new bills for 2026 and legislation carried over from the 2025 session.

Notable New Legislation

• Supplemental General Fund Budget for Years Ending June 30, 2026, and June 30, 2027 (LD 2212)

For more information: https://legislature.maine.gov/