An Act To Support Frontline Workers by Adding a Temporary Tax Bracket Affecting High Earners
Maine Legislature, Session 130, LD 1677
Committee: Taxation
Sponsors: FECTEAU
Amends: 36 MRSA §5111

Legislative Document
No. 1677
H.P. 1248
House of Representatives, May 5, 2021
An Act To Support Frontline Workers by Adding a Temporary Tax 
Bracket Affecting High Earners
Received by the Clerk of the House on May 3, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Speaker FECTEAU of Biddeford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5111, sub-§7 is enacted to read:
7.  Temporary income tax surcharge for fund for frontline workers.  For tax years 
beginning on or after January 1, 2021 and ending before January 1, 2023, in addition to any 
other tax imposed by this chapter, an income tax surcharge at the rate of 3% is imposed 
pursuant to this subsection.
A.  As used in this subsection, unless the context otherwise indicates, the following 
terms have the following meanings.
(1)  "Fund" means the Fund To Support Frontline Workers established in paragraph 
C.
(2) "Surcharge" means the income tax surcharge of 3% imposed pursuant to this 
subsection. 
(3) "Tax year" means the tax year beginning on or after January 1, 2021 and ending 
on or before December 31, 2021 and the tax year beginning on or after January 1, 
2022 and ending on or before December 31, 2022.
B.  The surcharge is imposed on the following persons in the following amounts.
(1)  For single individuals and married persons filing separate returns, the 
surcharge is imposed on Maine adjusted gross income in excess of $200,000 for 
each tax year.  
(2) For unmarried individuals or legally separated individuals who qualify as heads 
of households, the surcharge is imposed on Maine adjusted gross income in excess 
of $350,000 for each tax year.  
(3)  For individuals filing married joint returns or surviving spouses permitted to 
file a joint return, the surcharge is imposed on Maine adjusted gross income in 
excess of $500,000 for each tax year.
C.  The Fund To Support Frontline Workers is established as a dedicated nonlapsing 
account to be administered by the Treasurer of State.  The purpose of the fund is to 
provide a source of grants to frontline workers in accordance with the Frontline Worker 
Support Program established by the Department of Labor.
D.  The assessor shall determine the revenue generated annually by the surcharge 
imposed pursuant to this subsection and provide that information to the Treasurer of 
State no later than June 1st following the end of each tax year.  The Treasurer of State 
shall transfer the amount of revenue as determined by the assessor into the fund and 
provide notice of that amount to the Department of Labor.
Sec. 2.  Frontline Worker Support Program.  The Department of Labor shall 
establish the Frontline Worker Support Program pursuant to this section to provide grants 
to certain frontline workers.
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Department" means the Department of Labor.
B.  "Frontline worker" means a person who, during calendar year 2020 or 2021, 
conducts an operation, service or function that is essential to ensuring the continuity of 
critical functions, including, without limitation, a health care worker, firefighter, law 
enforcement officer, corrections officer, food and agricultural worker, United States 
Postal Service worker, manufacturing worker, grocery store worker, public transit 
worker and person who works in the educational sector, such as a teacher, support staff 
or a child care worker.
C.  "Fund" means the Fund To Support Frontline Workers established in the Maine 
Revised Statutes, Title 36, section 5111, subsection 7.
D.  "Program" means the Frontline Worker Support Program established by the 
department pursuant to this section.
2.  Implementation of program.  The department shall establish the following for the 
grants to frontline workers under the program:
A. Eligibility criteria, which must include, at a minimum, occupation, income and 
residency criteria;
B.  The application process;
C. Verification procedures;
D.  The amount of grants, which may be on a sliding scale and must be based on the 
amount of revenue generated by the income tax surcharge imposed pursuant to the 
Maine Revised Statutes, Title 36, section 5111, subsection 7, as reported to the 
department by the Treasurer of State; and
E. The timing and method of disbursement of grants to eligible frontline workers, 
including limiting the grants for each year to persons who were frontline workers 
during the 2020 calendar year for grants issued in 2021 and during the 2021 calendar 
year for grants issued in 2022.
3.  Disbursement of grants; outreach.  The Treasurer of State, based on the amount 
available in the fund, shall disburse grants to eligible frontline workers based on the 
eligibility criteria established by the department.  The Treasurer of State shall develop and 
implement an outreach program to notify frontline workers of the availability of the 
program.
4.  Rules.  The department may adopt routine technical rules, as defined in the Maine 
Revised Statutes, Title 5, chapter 375, subchapter 2-A, to implement the program.
5.  Report.  The department shall report as required by this subsection.
A.  The department shall submit a report to the Joint Standing Committee on Labor and 
Housing by December 1, 2021 regarding the progress made in implementing the 
program, including the eligibility criteria.
B.  Annually, beginning January 15, 2023 and ending when the program terminates, 
the department shall report to the joint standing committee of the Legislature having 
jurisdiction over labor matters:
(1) The amount deposited into the fund the prior calendar year;
(2) The number of applications for a grant received;
(3) The number and average dollar amount of grants disbursed; 
(4) Demographics regarding the recipients of the grants; and
(5) The balance remaining in the fund.
C.  No later than 60 days after the termination of the program pursuant to subsection 6, 
the department shall submit a final report that includes the annual information required 
pursuant to paragraph B as well as aggregate data for the duration of the program.
6.  Termination of program.  The program terminates when the funds in the fund are 
exhausted.
SUMMARY
This bill requires the Department of Labor to create the Frontline Worker Support 
Program to provide grants to frontline workers, who are those workers who conduct an 
operation, service or function that is essential to ensuring the continuity of critical 
functions, including, without limitation, health care workers, firefighters, law enforcement 
officers, corrections officers, food and agricultural workers, United States Postal Service 
workers, manufacturing workers, grocery store workers, public transit workers and persons 
who work in the educational sector, such as teachers, support staff or child care workers.  
The grants, disbursed by the Treasurer of State based on the eligibility criteria developed 
by the Department of Labor, are funded by a temporary, 2-year surcharge of 3% on annual 
Maine adjusted gross income in excess of $200,000 for single filers, $350,000 for heads of 
households and $500,000 for joint filers.