An Act to Phase Out the Income Tax
Maine Legislature, Session 132, LD 0856
Committee Amendment CA_A_H622 (House)
Amends: 36 MRSA §5111, 36 MRSA §5200

CO:MJvlITTEEAMENDMENT'A "to H.P. 542,L.D. 856, "AnActtoPhaseOutthe 
Income Tax" 
• 
Amend the bill by striking out all of section 5 and insetting the following: 
'Sec, 5. 36 MRSA §5111, sub-§8 is enacted to read: 
8, Income tax eliminated. Beginning Janua1y 1, 2030, the imposition of taxes 
pursuant to this section is prohibited. A retum is not required for a taxpayer whose income 
tax liability has been eliminated under this section. 
Sec. 6. 36 MRSA §5111, sub-§9 is enacted to read: 
9, 
Fiduciary income tax. This section may not be construed to eliminate the 
imposition of income tax on a fiduciaty. 
Sec. 7. 36 MRSA §5111, sub-§10 is enacted to read: 
10. Refundable tax credit schedule. Refundable tax credits due to a taxpayer eligible 
for reduced income tax liability under this section must be reduced in value on the same 
schedule that tax liability is reduced pursuant to subsection 7.' 
Amend the bill in section 6 in subsection 1-A in the first line (page 2, line 8 in L.D.) 
by striking out the following: "2017" and insetting the following: '2018' 
Amend the bill in section 7 in subsection 7 in the first 2 lines (page 2, lines 33 and 34 
in L.D.) by striking out the following: "and ending before Januaiy 1, 2030" 
Amend the bill by striking out all of section 8 and inse1ting the following: 
'Sec. 8. 36 MRSA §5200, sub-§8 is enacted to read: 
8. Income tax eliminated, Beginning on or after January 1, 2030, no taxes are 
imposed under this section. A return is not required for a taxpayer whose income tax 
liability has been eliminated under this section. 
Sec. 9. 36 MRSA §5200, sub-§9 is enacted to read: 
• Page 1 - 132LR1636(02) 
COMMITTEE AMENDMENT 
ROSI 
COMMITTEE AMENDMENT 'A" to H.P. 542, L.D. 856 
9. Fiduciary income tax. This section may not be construed to eliminate the 
imposition of income tax on a fiducia1y. 
Sec. 10. 36 MRSA §5200, sub-§10 is enacted to read: 
10. Refundable tax credit schedule. Refundable tax credits due to a taxpayer eligible 
for reduced income tax liability under this section must be reduced in value on the same 
schedule that tax liability is reduced pursuant to subsection 7.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment eliminates the requirement for taxpayers to file once their income tax 
liability has been reduced to zero. The amendment specifies that the income tax imposed 
on fiduciaries is not phased out. The amendment phases out refundable tax credits to 
individuals and corporations on the same schedule that income tax liability is phased out 
to those taxpayers. The amendment clarifies ce1tain dates as they relate to corporate 
income tax filers. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Approved: 05/30/25 LRL 
LD856 
LR 1636(02) 
An Act to Phase Out the Income Tax 
Fiscal Note for Bill as Amended by Committee Amendment A• ( H-0 22) 
Committee: Taxation 
.Fiscal Note Required: Yes 
Fiscal Note 
FY 2025-26 
FY 2026-27 
Projections FY 
2027-28 
Projections FY 
2028-29 
$218,291,000 
$798,836,000 
$1,436,713,500 
$2,127,781,500 
($218,291,000) ($798,836,000) 
($1,436,713,500) ($2;127,781,500) 
Other Special Revenue Funds 
($11,489,000) 
($4_2,044,000) 
($75,616,500) 
($111,988,500) 
Fiscal Detail and Notes 
This bill includes a revenue decrease to the General Fund of $218,291,000 in fiscal year 2025-26 and 
$798,836,000 in fiscal year 2026-27 by phasing out the Maine income tax, excluding fiduciary income tax, over 
years beginning in 2026 and requires that state department budgets be reduced proportionately. The bill also 
includes a revenue decrease to the Local Government Fund of $11,489,000 in fiscal year 2025-26 and 
$42,044,000 in fiscal year 2026-27. There are additional administrative and fiscal impacts of this bill that 
cannot be determined at this time. 
LR1636(02) - Fiscal Note - Page 1 of 1