An Act to Provide Heating Relief with Tax-free Home Energy Savings Accounts
Maine Legislature, Session 131, LD 1873
Committee Amendment CA_A_S556 (Senate)
Amends: 36 MRSA §5122

COMMITTEE AMENDMENT " A" to S.P. 757, L.D. 1873, "An Act to Provide
Heating Relief with Tax-free Home Energy Savings Accounts"
Amend the bill by striking out the title and substituting the following:
'An Act to Provide Electricity Cost Relief for Households Through an Income Tax
Deduction'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 36 MRSA §5122, sub-§2, ^[AAA is enacted to read:
AAA. For taxable years beginnine on or after January 1.2024. an amount up to $2,500
paid during the taxable year for electricity billed for use in the taxuaver's household.
No more than $2,500 may be_deducted for any one household. For the purposes of this
paragraph, "household" has the same meaning as in section 6201. subsection 6,
Sec. 2. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides one-time funding for computer programming costs related to an income
tax deduction for electricity costs,
GENERAL FUND 2023-24 2024-25
All Other $0 $11,000
GENERAL FUND TOTAL $0 $11,000
Revenue Services, Bureau of 0002
COMMITTEE AMENDMENT
2023-24
0.000 s
$0
$0
2024-25
3,000
$283,267
$17,454
COMMITTEE AMENDMENT " A " to S.P, 757, L.D. 1873 (^ i
Initiative: Establishes one Senior Tax Examiner and 2 Tax Examiner positions, effective
October 1, 2024, to audit individual income tax returns associated with an income tax
deduction for electricity costs.
GENERAL FUND
POSITIONS - LEGISLAWE COUNT
Personal Services
All Other
GENERAL FUND TOTAL $0 $300,721
ADMINISTRATFVE AND FINANCIAL
SERVICES, DEPARTMENT OF
DEPARTMENT TOTALS 2023-24 2024-25
1415 GENERAL FUND $0 $311,721
DEPARTMENT TOTAL - ALL FUNDS $0 $311,721
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which replaces the bill and changes the title, provides an income tax
deduction in an amount up to $2,500 paid during the taxable year for electricity used in the
taxpayer's household.
FISCAL NOTE REQIHRED
(See attached)
COMMITTEE AMENDMENT
Approved: 02/06/24 S^W^
LD 1873 LR 1495(02)
An Act to Provide Heating Relief with Tax-free Home Energy Savings Accounts
Fiscal Note for Bill as Amended by Committee Amendment '^"^5 -5S^
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Net Cost (Savings)
General Fund $0 $43,536,721 $50,565,830 $53,097,471
Appropriations/AHocations
General Fund $0 $311,721 $405,830 $419,971
Revenue
General Fund $0 ($43,225,000) ($50,160,000) ($52,677,500)
Other Special Revenue Funds $0 ($2,275,000) ($2,640,000) ($2,772,500)
Fiscal Detail and Notes
This bill establishes an individual income tax deduction for electricity costs of up to $2,500 for electricity used in a
taxpayer's household during the tax year. This deduction is estimated to affect more than 400,000 individual income
tax returns annually. It will reduce General Fund revenue by $43,225,000 and Local Government Fund revenue by
$2,275,000 in fiscal year 2024-25.
The bill includes ongoing General Fund appropriations to the Department of Administrative and Financial Services,
Bureau of Revenue Services beginning at $300,721 in fiscal year 2024-25 for one Senior Tax Examiner position and
two Tax Examiner positions starting October 1, 2024 to audit tax returns claiming the income tax deduction for
electricity costs. It also includes a one-time General Fund appropriation of $11,000 in fiscal year 2024-25 for
computer programming costs associated with the new tax deduction.
LR1495(02) - Fiscal Note - Page 1 of 1