An Act to Bring
Maine Legislature, Session 132, LD 0229
Committee Amendment CA_B_H1036 (House)
Amends: 36 MRSA §683, 36 MRSA §1760, 36 MRSA §5111, 36 MRSA §5213-A, 36 MRSA §5219-K, 36 MRSA §5403

COMMITTEE AMENDMENT "P " to H.P. 152, L.D. 229, "An Act to Bring
Fairness in Income Taxes to Maine Families by Adjusting the Tax Brackets and Tax Rates"
Amend the bill by striking out the title and substituting the following:
'An Act to Bring Fairness in Income Taxes to IVIaine Families by Adjusting the Tax
Brackets and Tax Rates and Bring Tax Relief to Maine Families by Changing Certain
Tax Laws'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 36 MRSA §683, sub-§l-B, as amended by PL 2019,c, 343, Pt. H, §2,is
further amended to read:
1-B. Additional exemption. A homestead eligible for an exemption under subsection
1 is eligible for an additional exemption of $5,000 of the just value of the homestead for
property tax years beginning on April 1, 2016, $10,000 of the just value of the homestead
for property tax years beginning on April 1, 2017, April 1, 2018 and April 1, 2019 aa4
$15,000 of the just value of the homestead for property tax years beginning on. or after
April 1, 2020 and each April 1st to April 1. 2026 and $22.000 of the just value of the
homestead for Drooertv tax years beeimiine on or after April 1. 2027.
Sec. 2. 36 MRSA §1760, sub-§9-B, as amended by PL 2021,c. 713, §§1 to 3 and
affected by §4, is farther amended to read:
9-B. Residential electricity. Sale and delivery of residential electricity as follows:
A. The Before October 1. 2026. the first 750 Idlowatt hours kilowatt-hours of
residential electricity per month;
B. Off peak Before October 1. 2026. off-peak residential electricity used for space
heating or water heating by means of an electric thermal storage device. For the
purpose of this paragraph, "off-peak residential electricity" means the off-peak delivery
of residential electricity pursuant to tariffs on file with the Public Utilities Commission
and the electricity supplied; aad
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " ^7 " to H.P. 152, L.D. 229
^ . _-....-„'_
C. Residential Before October 1. 2026. residential electricity consumed by eligible
customers enrolled in a low-mcome assistance program implemented pursuant to Title
35-A, section 3214, subsection 2 or an arrearage management program implemented
pursuant to Title 35-A, section 3214, subsection 2-A-: and
D, Beeinning October I. 2026. the sale and delivery QfallresidentiaLelecri^
For the purpose of this subsection, "residential electricity" means electdcity furnished to
buildings designed and used for both human habitation and sleeping, with the exception of
hotels. When residential electricity is furnished through one meter to more than one
residential unit and when the transmission and distribution utility applies its tariff on a per
unit basis, the furnishing of electricity is considered a separate sale for each unit to which
the tariff applies. For the purpose of this subsection, "delivery" means transmission and
distribution.
Sec. 3. 36 MRSA §1760, sub-§121 is enacted to read:
121. Diaoers. Beeinnme January 1. 2027. sales of disnosable and reusable diapers.
including diauer covers. wraps and diauer fasteners that are used with reusable diapers. For
the purposes of this subsection, "diaper" means an absorbent garment worn by humans who
are incapable of or havina difficulty controlline theii bladders or bowel movements that is
marketed to be worn bv adults or children.
Sec. 4. 36 MRSA §5111, sub-§l-F, as enacted by PL 2015, c. 267, Pt. DD, §3,is
amended to read:
1-F. Single individuals and married persons filing separate returns; tax years
beginning from 2017 to 2025. For tax years beginning on or after January 1, 2017 but,
before January 1. 2026, for siagle individuals and married persons filing separate returns:
If Maine taxable income is: The tax is:
Less than $21,050 5.8% of the Maine taxable income
At least $21,050 but less than $50,000 $1,221 plus 6.75% of the excess over
$21,050
$50,000 or more $3,175 plus 7.15% of the excess over
$50,000
See. 5. 36 MRSA §5111, sub-§l-G is enacted to read:
1-G. Sinele individuals and married oersons filine seoarate returns; tax years
beeinnine 2026. For tax years beeinnine on or after January 1,2026. for single individuals
3 and married persons filing separate returns:
If Maine taxable income is: The tax is:
Less than $27.450 5,5% of the Maine taxable income
At least $27.450 but less than $64.950 $1.510 plus 6.75% of the excess over
$27.450
At least $64.950 but less than $144.500 $4.041 plus 7.15% of the excess over
$64.950
At least $144.500 but less than $500.000 $9.729 plus 7.75% of the excess over
$144.500
$500.000 or more $37.280 plus 8.95% of the excess over
$500.000
Page2-132LR0424(04)
COMMITTEE AMENDMENT
0<5> COMMnTEE AMENDMENT " ^ " to H.P. 152, L,D. 229
Sec. 6. 36 MRSA §5111, sub-§2-F, as enacted by PL 2015,c. 267, Pt. DD,§5,is
amended to read:
2-F. Heads of households; tax years beginning from 2017 to 2025. For tax years
begirming on or after January 1,2017 but before January 1.2026, for unmarried individuals
or legally separated individuals who qualify as heads of households:
If M.aine taxable income is: The tax is :
Less than $31,550 5.8% of the Maine taxable income
At least $31,550 but less than $75,000 $1,830 plus 6.75% of the excess over
$31,550
$75,000 or more $4,763 plus 7.15% of the excess over
$75,000
See. 7. 36 MRSA §5111, sub-§2-G is enacted to read;
2-G. Heads of households: tax years beeinnine 2026. For tax vears beehmine on or
after January 1. 2026. for umnamed individuals or legally separated individuals who
qualify as heads of households:
If Maine taxable income is: The tax is ;
Less than $41.150 5.5% of the Maine taxable; income
At least $41.150 but less than $97.450 $2.263 plus 6.75% of the excess over
$41.150
At least $97.450 but less than $216.750 $6.063 plus 7.15% of the excess over
$97.450
At least $21 6.750 but less than $750.000 $ 14.593 plus 7.75% of the excess over
$216.750
$750.000 or more $55.921 plus 8.95% of the excess over
$750.000
See. 8. 36 MRSA §5111, sub-§3-F, as enacted by PL 2015,c. 267, Pt, DD, §7,is
amended to read;
3-F. Individuals filing married joint returns or surviving spouses; tax years
beginning from 2017 to 2025. For tax years begmning on or after January 1, 2017 but
before January 1. 2026, for individuals filing man-ied joint returns or surviving spouses
permitted to file a j oint return:
If Maine taxable income is: The tax is:
Less than $42,100 5.8% of the Maine taxable income
At least $42,100 but less than $100,000 $2,442 plus 6.75% of the excess over
$42,100
$100,000 or more $6,350 plus 7.15% of the excess over
$100,000
See. 9. 36 MRSA §5111, sub-§3-G is enacted to read:
3-G. Individuals fiUne married joint returns or survivine spouses: tax years
beeinnine 2026. For tax vears beemnine on or after January 1. 2026. for individuals filine
married ioint returns or survivm^ spouses permitted to file a joint return:
If Maine taxablejncome isi The tax is:
Less than $54.900 5.5% of the Maine taxable income
COMMITTEE AMENDMENT
COMMnTEE AMENDMENT'% " to H.P. 152, L.D. 229
At least $54.900 but less than $129.900 $3.020 olus 6.75% of the excess over
$54.900
At least $129.900 but less than $289.000 $8.083 plus 7.15% of the excess over
$129.900
At least $289.000 but less than $1.000.000 $19.459 plus 7.75% of the excess over
$289.000
$1.000.000 or more $74.562 plus 8.95% of the excess over
$1.000.000
See. 10. 36 MRSA §5213-A, sub-§l, P-l, as enacted by PL 2017, c. 474, Pt. B,
§9, is amended to read:
A-l. For tax years beginning on or after January 1, 2018 and before January 1. 2026,
"base credit" means:
(1) For single individuals, $125;and
(2) For individuals filing joint returns or as heads of households, $175 plus an
additional amount equal to:
(a) For individuals filing joint returns, $25 if they can claim fhe federal child
tax credit pursuant to the Code, Section 24 for no more than one qualifying
child or dependent or $50 if they can claim the credit for more than one
qualifying child or dependent; or
(b) For individuals filing as heads of households, $25 if they can claim the
federal child tax credit pursuant to the Code, Section 24 for 2 qualifying
children or dependents or $50 if they can claim the credit for more than 2
qualifying children or dependents.
Sec. 11. 36 MRSA §5213-A, sub-gl, ^[A-2 is enacted to read:
A-2. For tax vears beeinnins on or after January 1. 2026. base credit means:
d) For single individuals. $170; and
(2} For individuals filine ioiat returns or as heads of households. $240 plus an
additional amount equal to:
(a) For individuals films ioint returns. $40 if they can claim the federal child
tax credit Dursuant to the Code. Section. 24 for no more than one aualifvine
child or dependent or $75_if they can claim the credit for_morejhan Qne
2 flualifsdng child or dependent; or
fb) For individuals filine as heads of households. $40 if they can claim the
federal child _tax credit pursuant to the Code. Section 24 for 2 aualifving
children or dependents or $75 if they can claim the credit for more than 2
aualifvine children or deoendents.
Sec. 12. 36 MRSA §5213-A, sub-§4, as enacted by PL 2015,c. 267, Pt. DD,§19,
is amended to read:
4. Phase-out of credit. The credit allowed under this section is phased out as follows.
A. For single individuals, the credit is reduced by $ 10 for every $500 or portion thereof
that oxoeeds $20,000 of fho inoomo;
COMMITTEE AMENDMENT
COMMrTTEE AMENDMENT " f) " to H.P. 152, L.D. 229
B. For unmamed individuala or legally aoparated. individuala who qualify as heads of
households, the credit is reduced by $15 for every $750 or portion thereof that exceeds
$30,000ofthomcomo,
C. For individuals filing married joint rotums or aur/iving spousog pormittod to filo
joint returns, the credit is reduced by $20 for every $1,000 or portion thereof that
exceeds $/10,000 of the income.
D. For tax years begJTimng before January 1. 2026:
d) For single individuals. the credit is reduced by $10 for every $500 or portion
thereof that exceeds $20.000 of the income;
(T) For unmarried mdiYiduals QLjega!lv_separated mdividuals who Qualify as
heads of households, the credit is reduced by $ 15 for ever/ $750 or portion thereof
that exceeds $30.000 of the income: and
C3') For individuals filing married joint returns or survivmg spouses oermitted to
file joint returns, the credit is reduced by $20 for every $1.000 or portion thereof
that exceeds $40.000 of the income.
E. For tax years begimiine on or after January J, 2026:
fl) For single individuals. the credit is reduced by $10 for every $500 or pQrtjon
thereof thafexceeds $34.000 of the income;
f2) For umnamed individuals or leeallv separated individuals who Qualify as
heads of households, the credit is reduced by $15 for every $750 or portion thereof
that exceeds $51.000 of the income; and
(3} For individuals filing married ioint returns or surviving suouses oermitted to
file joint returns, the credit is reduced by $20 for every $1.000 or portion thereof
that exceeds $68.000 of the income.
Sec. 13. 36 MRSA §5219-KK, sub-§2-D, as amended by PL 2023, c. 412, Pt. S,
§4, is repealed and the foUo-wing enacted in its place:
2-D. Credit in 2022 and after. For tax years beeinnine on or after January 1. 2022.
a_resident mdividual is allowed a credit against the taxes imposed under this Part equal to
the amount by whicli_th6 benefit base for the resident individual exceeds 4% of the resident
individual's income, except that. for tax years beRimiine on or after January 1. 2027. a
residentindiyidual who is 65 years of aee or older with an annual income at or below
$36,000 is allowed a credit against the taxes_mmQsed under this Part equal to the amount
3 by whichthe benefit base for the resident individual exceeds 3 % of the resident individual's
income. The amount of the credit may not exceed:
A. For tax years be^mums on or afteLjamary_ 1^2022 and before January 1, 2026.
$1.000 for resident individuals under 65 years of age as of the last day of the taxable
year:
B. For tax years beeinnine on or after January 1. 2026. $ 1.500 for resident individuals
under 65 years of aee as of the last day of the taxable year:
C. For tax years beeinnine on or after January 1. 2022 and before January 1. 2024.
$1.500 for resident individuals 65 years of age and older as of the last day of the taxable
year; and
COMMITTEE AMENDMENT
COMMHTEE AMENDMENT T-) " to H.P. 152, L.D. 229
D, For tax years besRinnin R on or after January 1.2024. $2.000 for resident individuals
65 years of age and older as of the last day of the taxable year..
In the case of married individuals filing a iomt return. only one spouse is required to be 65
years of aee or older to qualify for the credit applicable to individuals who are65_¥ears of
age and older as established by this subsection orto auaUfy for the limitation specified in
paragraphs C and D. Mamed individuals filine separate returns do not qualify for the credit
under this section.
Sec. 14. 36 MRSA §5403, sub-§l, as enacted by PL 2015,c. 267, Pt. DD,§33,is
repealed and the following enacted in its place:
1. IndividuaUncome tax rate tables. B m 2026 and each year thereafter, bv
the dollar amounts of the tax rate tables specified in section 5111. subsections 1-G. 2-G
and 3-G. except that for the ourposes of this subsection, notwithstandine section 5402.
subsection 1-B. the "cost-of-living adjustment" is the Chained Consumer Price Index for
the 12-month period ending June 30th of the wecedinB calendar year divided by the
Chained Consumer Price Index for the 12-month period ending June 30.2025;
Sec. 15. 36 MRSA §5403, sub-§5, as amended by PL 2017, c. 474, Pt. B, §22, is
further amended to read:
5. Sales tax fairness credit. For the sales tax fairness credit:
A. Beginning in 2018 and each year thereafter, by the base credit amounts in section
5213-A, subsection 1, paragraph A-l, includmg the additional amounts in section
5213-A, subsection 1. paragraph A-l. subparagraph (2), divisions (a) and (b), except
that for the purposes of this paragraph, notwithstanding section 5402, subsection 1-B,
the "cost-of-living adjustment" is the Chained Consumer Price Index for the 12-month
period ending June 30th of the preceding calendar year divided by the Chained
Consumer Price Index for the 12-month period ending June 30,2017. If the base credit
amount, adjusted by application of the cost-of-living adjustment, is not a multiple of
$5, any increase must be rounded to the next lowest multiple of $5; wd
C. Beginning in 2016 and each year thereafter prior to 2026, by the dollar amount of
the income threshold set forth in section 5213-A, subsection 4, paragraph D. except
that for the purposes of this paragraph, notwithstanding section 5402, subsection 1-B,
the "cost-of-livmg adjustment" is the Chained Consumer Price Index for the 12-month
period ending June 30th of the precediag calendar year divided by the Chained
Consumer Price Index for the 12-month period ending June 30,2015;
D. Begirinmg m 2026 and each year thereafter, by the base credit amounts in section
5213-A. subsection 1. oaraerauh A-2. includine the additional amounts in section
5213-A. subsection 1. oaraeraoh A-2. subparaerauh (2'). divisions fa) and fb). except
that for the purp_oses ofthisnaraeraoh, notwithstanding section 5402. subsection 1-B.
the "cost-of-livme adjustment" is the Chained Consumer Price Index for the 12-monfh
oeriod endine June 30th of the urecedine calendar year divided by the Chained
Consumer Price Index for the 12-month ueriod ending June 30. 2025. If the base credit
amount, adjusted by application of the cost-of-livine adjustment, is not a multinle of
$5. any increase must be rounded to the next lowest multiple of $5; and
E. Beginning in 2026md.eachyesc thereafter, by the dollar amount of the income
threshold set forth in section 5213-A. subsection 4. oaraeraoh E. excetrt that for the
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " ^ " to H.P. 152, L.D. 229
^ _ ^ ^?
purposes of this oaraeraph. notwithstandine section 5402. subsection 1-B. the "cost-of-
living adjustment" is the Chained Consumer Price Index for the 12-month Denod
ending June 30th of the orecedme calendar year divided by the Chained Consumer
Price Index for the 12-month period ending June 30. 2025;
Sec. 16. 36 MRSA §5403, sub-§6, as repealed and replaced by PL 2023, c. 412,
Pt, S, §5, is amended to read:
6. Property tax fairness credit. For the property tax fairness credit:
A, Beginning in 2018 and each year thereafter, by the benefit base amounts in section
5219-KK, subsection 1, paragraph A-l, subparagraphs (1) to (3), except that for the
purposes of this subsection, notwithstanding section 5402, subsection 1-B, the "cost-
of-living adjustment" is the Chained Consumer Price Index for the 12-month period
ending June 30th of the preceding calendar year divided by the Chained Consumer
Price Index for the 12-month period ending June 30, 2017;aad
B. Beginning in 2024 and each year thereafter, by the benefit base amount in section
5219-KK, subsection 1, paragraph A-l, subparagraph (4), except that for the purposes
of this subsection, notwithstanding section 5402, subsection 1-B, the "cost-of-living
adjustment" is the Chained Consumer Price Index for the 12-month period ending June
30th of the preceding calendar year divided by the Chained Consumer Price Index for
the 12-month period ending June 30, 2023; and
C. Beeimune in 2026 and each year thereafter, by the income amount at or below
which a resident individual who is 65 years of aee or older is allowed the credit
movided m section 5219-KK. subsection 2-D that is equal to the amount by which the
benefit base for the resident individual exceeds 3% of the resident individual's income.
except JhaLJbr the tnuposes of fhis subsection, notwithstanding section 5402.
subsection 1-B. the "cost-of-livine adjustment" is the Chained Consumer Price Index
for the 12-monthj3enod ending June 30th of the preceding calendar year divided by
the Chained Consumer Pricelndex forthe 12-month period endine June 3 0. 2025:
Sec. 17. 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 administrative expenses, including printing and
mailing, temporary services and computer system changes and related testing.
GENERAL FUND 2025-26 2026-27
AUOther $0 $193,270
•
GENERAL FUND TOTAL $0 $193,270
Amend the bill by reletterfng or renumbermg any nonconsecudve Part letter or section
number to read consecutively.
COMMITTEE AMENDMENT
COMMHTEE AMENDMENT " F')" to H.P, 152, L.D. 229
^y~ 1 SUMMARY
This amendment replaces the bill and changes fhe title, The amendment makes the
following changes to the tax laws.
1. It changes, beginning in 2026, the current income tax brackets by increasing the
tb-eshold amount of income subject to the current tax rates of 6.75% and 7.15%. It reduces
the tax rate of the lowest tax bracket from 5.8% to 5.5%. It adds 2 new tax brackets and
establishes rates of tax on the 2 new brackets of 7.75% and 8.95%, respectively.
2. It provides that, for tax years begirming on or after January 1, 2027, for resident
individuals who are 65 years of age and older filing individually or as a married individual
filing jointly, with an annual income of $36,000 or less, indexed for inflation, the property
tax fairness credit is equal to the amount by which the benefit base for the resident
individual exceeds 3% of the resident individual's income. In the case of married
individuals filing jointly, only one spouse is required to be 65 years of age or older to
qualify for the tax credit. The amendment does not eliminate the property tax fairness
credit available under current law.
3. It increases, for tax years beginning on or after January 1, 2026, the property tax
fairness credit for individuals under 65 years of age from $1,000 to $1,500.
4. It provides, begmning January 1, 2027, a sales tax exemption for disposable and
reusable diapers, including diaper covers, wraps and diaper fasteners, that are marketed to
be worn by adults or children.
5.It expands the sales tax exemption for the sale and delivery of residential electricity
to cover all sales and deliveries of residential electoicity beginning October 1, 2026.
6. It provides an increase of $7,000 in the homestead exemption for property tax years
beginning on or after April 1, 2027, for a total of up to $32,000.
7. It updates the sales tax fairness credit for tax years beginmng on or after January 1,
2026. The maximum credit allowed under the updated credit is $ 170 for single filers, $240
for individuals filing jointly with no qualifying children or dependents or as heads of
households with no more than one qualifying child or dependent, $280 for individuals filing
jointly with no more than one qualifying child or dependent or as heads of households with
no more than 2 qualifying children or dependents and $315 for individuals filing jointly
with 2 or more qualifying children or dependents or as heads of households with 3 or more
qualifying children or dependents. The updated credit begins to phase out at $34,000 for
single filers, $51,000 for heads of households and $68,000 for married joint filers. The
updated credit is adjusted annually for inflation.
FISCAL NOTE REQmRED
(See attached)
COMMITTEE AMENDMENT
Approved: 04/06/26 LRL
LD 229 LR 424(04)
An Act to Bring Fairness in Income Taxes to Maine Families by Adjusting the Tax Brackets and Tax
Rates
Fiscal Note for Bill as Amended by Committee Amendment "^ f U-^lf) <i ^
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Net Cost (Savings)
General Fund
Appropriations/AlIocations
General Fund
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
$0 ($70,685,280) ($18,815,000) ($13,502,250)
$0
$193,270 $19,299,000 $25,918,000
Revenue
General Fund
Other Special Revenue Funds
$0
$0
$70,878,550
$3,730,450
$38,114,000
$2,006,000
$39,420,250
$2,074,750
Fiscal Detail and Notes
The bill would result in a net increase in General Fund revenue of $70,878,550 in fiscal year 2026-27, $38,114,000 in
fiscal year 2027-28 and $39,420,250 in fiscal year 2028-29 from adjusting individual income tax rate brackets and
increasing the top marginal tax rates for tax years beginning on or after January 1, 2026 as well as other changes to tax
law. The bill would result in a revenue increase to the Local Government Fund of $3,730,450 in fiscal year 2026-27,
$2,006,000 in fiscal year 2027-28 and $2,074,750 in fiscal year 2028-29. The bill would increase General Fund costs
beginning in fiscal year 2027-28 from increasing the homestead exemption by $7,000 and provides an appropriation of
$193,270 in fiscal year 2026-27 for administrative costs of the Department of Administrative and Financial Services,
Bureau of Revenue Services.
LR0424(04) - Fiscal Note - Page 1 of 1