An Act to Reduce Household Energy Costs in Response to Federal
Maine Legislature, Session 132, LD 2140
Committee: Taxation
Sponsors: TEPLER
Amends: 36 MRSA §5219-C

Legislative Document
No. 2140
S.P. 858
In Senate, January 7, 2026
An Act to Reduce Household Energy Costs in Response to Federal 
Cuts
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator TEPLER of Sagadahoc.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-CCC is enacted to read:
§5219-CCC.  Energy-efficient home improvement tax credit
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Air sealing materials" means materials used to create barriers against drafts and 
prevent or reduce the loss of heat from a building and includes, but is not limited to, 
caulk, weather stripping, sealant foam and tape.
B.  "Building envelope improvement" means an improvement to a permanent residence 
as follows:
(1)  The repair of an exterior door or an exterior window or skylight or the 
replacement of an exterior door or an exterior window or skylight with an 
energy-efficient door, window or skylight; and
(2)  The use of insulation and air sealing materials.
C.  "Home energy audit" means an inspection of a permanent residence to determine 
the most significant and cost-effective energy efficiency improvements conducted by 
a qualified home energy auditor or under the supervision of a qualified home energy 
auditor.
D.  "Permanent residence" means a place in this State where an individual has a true, 
fixed and permanent home and principal establishment to which the individual, 
whenever absent, has the intention of returning. An individual may have only one 
permanent residence at a time and, once a permanent residence is established, that 
residence is presumed to continue until circumstances indicate otherwise.  
E.  "Qualified energy-efficient improvement" means a home energy audit or building 
envelope improvement that is conducted or first placed in service during the taxable 
year.
F.  "Qualified expense" means an expense made for a qualified energy-efficient 
improvement made to a taxpayer's permanent residence.  
G.  "Qualified home energy auditor" means an individual who is certified by the United 
States Department of Energy to conduct energy-efficient home energy audits.
2.  Credit allowed.  For tax years beginning on or after January 1, 2026, a resident 
individual is allowed a credit against the tax otherwise due under this Part for qualified 
expenses incurred for a qualified energy-efficient improvement.  The amount of the credit 
is determined as follows.
A.  For a home energy audit, the maximum credit allowed under this section is $150.  
In order to qualify for the credit, the qualified home energy auditor shall conduct a 
home energy audit that is consistent with industry standards and provide a written 
report that includes, at a minimum:
(1)  The results of the home energy audit identifying the most significant and cost-
effective energy-efficient improvements for the permanent residence and an 
estimate of the energy and cost savings that would be attained with respect to those 
improvements;
(2)  The qualified home energy auditor's name and relevant employer identification 
number or, if the qualified home energy auditor does not have an employer 
identification number, another type of appropriate taxpayer identification number; 
and
(3)  An attestation that the qualified home energy auditor is certified to conduct 
home energy audits by a qualified certification program and the name of that 
qualified certification program.
B.  For building envelope improvements, the maximum credit is:
(1)  For an exterior door, $250 per door and $500 total and for an exterior window 
or skylight, $600 total. 
An exterior door or exterior window or skylight must meet or exceed applicable 
United States Environmental Protection Agency and United States Department of 
Energy Energy Star program standards or similar energy efficiency standards 
established or approved by the Efficiency Maine Trust; and
(2)  For insulation and air sealing materials, $1,200. 
The insulation and air sealing material must meet or exceed International Energy 
Conservation Code standards in effect as of the beginning of the calendar year that 
is 2 years prior to the calendar year in which the materials are placed in service.
The cost of the labor to install a building envelope improvement is not eligible for the 
credit under this section.
3.  Refundability.  The credit allowed under this section is refundable.  
4.  Phase-out.  The amount of the credit allowed by this section must be reduced, but 
not below zero, by $20 for each $500 or fraction thereof by which the taxpayer's Maine 
adjusted gross income exceeds:  
A.  For individuals filing as single individuals, $100,000; 
B.  For an individual filing as a head of household, $125,000; 
C.  For individuals filing married joint returns or surviving spouses, $150,000; and
D.  For a married individual filing a separate return, 1/2 of the applicable amount under 
paragraph C.
SUMMARY
This bill, which is based on the federal energy-efficient home improvement credit that 
expired December 31, 2025, allows a resident to claim a refundable tax credit for the cost 
of energy-efficient improvements made to that resident's permanent residence in Maine.  
Eligible energy-efficient improvements are:
1.  A home energy audit that is conducted by a qualified home energy auditor or 
someone under the supervision of a qualified home energy auditor.  The maximum credit 
for a home energy audit is $150;
2.  The repair of an exterior door or exterior window or skylight or the replacement of 
an exterior door or an exterior window or skylight with an exterior door or exterior window 
or skylight that meets or exceeds specified energy efficiency standards.  The maximum 
credit available for a replacement door is $250 per door, up to a maximum of $500 for more 
than one door, and for a replacement window or skylight, $600 total; and
3.  The use of insulation and air sealing materials that meet or exceed International 
Energy Conservation Code standards in effect as of the beginning of the calendar year that 
is 2 years prior to the calendar year in which the materials are placed in service.  The 
maximum credit for insulation and air sealing material is $1,200.
The credit is not available for the cost of labor to install a door, window or skylight or 
insulation and air sealing material.
The credit is phased out based on income limits.