Resolve, to Create a Tax Incentive Pilot Project to Encourage
Maine Legislature, Session 132, LD 1865
Sponsors: BENNETT

Legislative Document
No. 1865
S.P. 735
In Senate, May 5, 2025
Resolve, to Create a Tax Incentive Pilot Project to Encourage 
Businesses to Adopt a 4-day Workweek
Received by the Secretary of the Senate on May 1, 2025.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BENNETT of Oxford.
Sec. 1.  Four-day Workweek Pilot Project established; administration by 
Department of Labor. Resolved:  That the Four-day Workweek Pilot Project is 
established to promote, incentivize and support the use of a 4-day workweek by qualifying 
employers and to study the benefits and effects of a 4-day workweek on participating 
employees and participating employers.  The Department of Labor shall implement the 
pilot project.
1.  Definitions.  As used in this resolve, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Department" means the Department of Labor.
B.  "Employee" means an individual who provides services or labor for an employer 
for wages or other remuneration.  
C.  "Employer" means a person in this State that employs individuals, including the 
State and a political subdivision of the State.  "Employer" includes a person acting in 
the interest of an employer directly or indirectly.  
D.  "Participating employee" means an employee of a participating employer who is 
selected by the participating employer to participate in the pilot project.
E.  "Participating employer" means a qualifying employer that is selected by the 
department to participate in the pilot project.
F.  "Pilot project" means the Four-day Workweek Pilot Project developed pursuant to 
this section.
G.  "Qualifying employer" means an employer that has at least 15 employees and meets 
the other qualifications for participation in the pilot project as developed by the 
department.
H.  "Tax credit" means the tax credit provided pursuant to section 2.
2.  Duration of pilot project; limited participation.  The pilot project must start no 
later than January 1, 2027 and continue for at least 2 years but no more than 4 years.  The 
department shall determine the length of the pilot project and may limit participation by 
employers.
3.  Duties of department in implementing and administering pilot project.  In order 
to implement the pilot project, including determining participation by qualifying 
employers, the department shall:
A.  Develop qualifications and an application process for participation by employers 
in the pilot project;
B. Advertise and promote the pilot project, including the tax credit, to employers in the 
State, including making an application available through the department's publicly 
accessible website;
C.  Require a qualifying employer to submit an application to the department that 
includes a detailed proposal by the employer to establish and implement a 4-day 
workweek for at least 15 employees of that employer;
D.  Require that a proposal submitted by a qualifying employer pursuant to paragraph 
C:
(1) Describes the manner in which the qualifying employer will develop and 
implement a plan to transition its participating employees to a 4-day workweek; 
and
(2) Ensures that the proposal for a 4-day workweek for participating employees 
results in employees receiving a meaningful reduction in hours worked per week 
without any loss of pay, employment status or benefits;
E.  Select qualifying employers for participation in the pilot project based on the 
proposals submitted pursuant to paragraph C.  Additionally, in making the selection, 
the department shall make every effort to select qualifying employers of diverse size, 
occupation, industry sector and geographical location; qualifying employers that have 
both employees who are exempt from and who are subject to the federal Fair Labor 
Standards Act of 1938; and qualifying employers that are veteran-owned, women-
owned and minority-owned businesses and businesses owned by individuals with 
disabilities; 
F.  Enter into a contract with each participating employer.  The contract must require 
that a participating employer complies with the conditions of the pilot project and 
allows the department access to data necessary for the department to evaluate the 
effectiveness of the pilot project and compliance by the participating employer, 
including, but not limited to, surveys and interviews of participating employees, 
economic data and other information the department considers necessary; 
G.  Inform a qualifying employer that is a public sector employer that the public sector 
employer may participate in the pilot project if selected but is not eligible for the tax 
credit; and
H.  Certify to the State Tax Assessor those participating employers that are eligible for 
the tax credit.
4.  Participating employer duties.  A participating employer shall:
A.  Comply with the proposal submitted pursuant to subsection 3 upon which the 
participating employer was accepted into the pilot project, unless the department and 
participating employer mutually agree to modifications of the proposal;
B.  Allow the department access to the participating employees of that participating 
employer; 
C.  Inform its participating employees of the conditions of the contract entered into 
with the department pursuant to subsection 3, paragraph F, including the requirement 
to provide the department access to the participating employer's data and to 
participating employees, and the ability of a participating employee to opt out of the 
data-gathering process by the department.  Notwithstanding paragraph B, the 
participating employer does not have to allow the department access to a participating 
employee who opts out of the data-gathering process; and
D.  Provide the department with access to data necessary for the department to evaluate 
the effectiveness of the pilot project, including, but not limited to, surveys and 
interviews of participating employees, economic data, key performance indicators as 
determined by the department and other information the department considers 
necessary.
5.  Evaluation of pilot project.  The department shall conduct an ongoing evaluation 
of the pilot project to determine the efficacy and effect of transitioning to a 4-day 
workweek.  
A.  The department shall gather participating employee and participating employer data 
through the use of, without limitation, employee surveys and interviews, economic data 
and other information pursuant to the schedule specified in paragraph B.  
B.  The department shall:
(1)  Conduct surveys and interviews of participating employees at the start of a 
participating employer's participation in the pilot project, 12 months after the start 
of the participating employer's participation in the pilot project and at the end of 
participation by the participating employer in the pilot project.  The surveys and 
interviews must include questions to track the health and wellness of participating 
employees over the course of the pilot project.  The department shall inform 
participating employees that the surveys and interviews are voluntary and they may 
choose to not participate;
(2) Conduct interviews of a participating employer at the start and end of 
participation in the pilot project and no later than December 31st of each year for 
the duration of the pilot project;
(3)  Determine whether a participating employer is using artificial intelligence 
technology and analyze that use, including any gains in efficiency and the effect 
on employment by that participating employer, such as changes in the number of 
employees and benefits provided to employees and any other metrics considered 
relevant by the department; and
(4)  Gather economic and administrative data from participating employers on a 
monthly basis.
C.  All participating employee data must be anonymized.
6.  Reporting. Annually, not later than December 31st for the duration of the pilot 
project, and no later than 60 days following the end of the pilot project, the department 
shall publish a report on the progress of the pilot project on the department's publicly 
accessible website.  The department shall submit its reports to the joint standing committees 
of the Legislature having jurisdiction over appropriations and financial affairs, taxation 
matters, labor matters and economic and community development matters.  The final report 
must include, but is not limited to, the total number of participating employers; the size, 
occupation, industry sector and geographical location of participating employers; 
demographic information of participating employees, including, but not limited to, age, 
gender and race; the economic and social effect of a 4-day workweek on the participating 
employers; the effect of a 4-day workweek on the well-being and work life of participating 
employees; and any findings or recommendations based on the research conducted on 4-
day workweeks.
7.  Rules.  The department shall adopt routine technical rules pursuant to the Maine 
Revised Statutes, Title 5, chapter 375, subchapter 2-A to implement the provisions of this 
section.
Sec. 2.  Tax credit for participating employers. Resolved:  That a participating 
employer is entitled to a credit against taxes due under the Maine Revised Statutes, Title 
36, Part 8 as provided in this section.
1.  Tax credit.  The Commissioner of Labor and the State Tax Assessor, for tax years 
beginning on or after January 1, 2027, shall develop, pursuant to this subsection, a tax credit 
for the duration of the pilot project for participating employers that are determined eligible 
by the department for the tax credit.
A.  The department shall determine criteria for eligibility for the tax credit including, 
at a minimum, that the participating employer has:
(1) Participated in the pilot project for at least one year;
(2) Continued to comply with the proposal submitted by that participating 
employer pursuant to section 1, subsection 3, paragraph C; and
(3) Submitted a report to the department detailing its transition to a 4-day 
workweek, including compliance with data collection as described in section 1, 
subsection 4.
B.  The department, in consultation with the State Tax Assessor, shall determine the 
amount of the tax credit based on one or more of the following:
(1) A fixed dollar amount for each participating employer;
(2) A fixed dollar amount for each participating employee;
(3) A percentage of the wages paid to each participating employee; or
(4)  A dollar amount that assists in offsetting a participating employer's costs to 
hire new employees due to the employer's participation in the pilot project.
C.  The department shall develop an application process for the tax credit for a 
participating employer and a process of certifying that participating employer's 
eligibility for the tax credit to the State Tax Assessor.
D.  The State Tax Assessor shall determine the process for applying the tax credit for 
a participating employer certified by the department as eligible for the tax credit.
2.  Report.  The State Tax Assessor, in consultation with the department, no later than 
March 1st annually for the duration of the tax credit, shall file a report with the joint 
standing committees of the Legislature having jurisdiction over appropriations and 
financial affairs, taxation matters, labor matters and economic and community 
development matters on the tax credit.  The reports must include, but are not limited to, the 
total amount of tax credits claimed pursuant to this section; the number of applications for 
the tax credit received; and the number of participating employers.
3.  Rules.  The department and the State Tax Assessor shall adopt routine technical 
rules pursuant to the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A to 
implement the tax credit, including the criteria for eligibility, the application process and 
the amount of the tax credit.
SUMMARY
This resolve establishes the Four-day Workweek Pilot Project, administered by the 
Department of Labor, to promote, incentivize and support the use of a 4-day workweek by 
qualifying employers and to study the benefits and effects of a 4-day workweek on 
participating employees and employers.  The pilot project is open to all private or public 
employers that have at least 15 employees, based on a selection process conducted by the 
department that ensures participation, as far as practicable, of qualifying employers of 
diverse size, occupation, industry sector and geographical location; qualifying employers 
that have both employees who are exempt from and who are subject to the federal Fair 
Labor Standards Act of 1938; and qualifying employers that are veteran-owned, women-
owned and minority-owned businesses and businesses owned by individuals with 
disabilities.
The resolve specifies that at least 15 employees of a participating employer must 
participate in the pilot project.  Those employees who participate must receive a meaningful 
reduction in hours worked per week without any loss of pay, employment status or benefits. 
The duration of the pilot project must be at least 2 years and no more than 4 years, as 
determined by the department.
On a regular basis, a participating employer is required to provide the department 
access to the employer's data and to the employer's participating employees, including 
through interviews and surveys, so that the department can determine the efficacy and 
effect of transitioning to a 4-day workweek.  Participating employees may opt out of the 
interviews and surveys and any data gathered from employees must be anonymized.
The resolve establishes a tax credit for eligible employers participating in the pilot 
project.  A participating employer that is certified as eligible, except for a public employer, 
is entitled to credit against income taxes owed by that employer in an amount determined 
by the department and the State Tax Assessor based on criteria such as a fixed dollar 
amount for each participating employer or a dollar amount that assists in offsetting a 
participating employer's costs to hire new employees due to the employer's participation in 
the pilot project.
Based on the information gathered, for the duration of the pilot project, the department 
is required to annually report to the joint standing committees of the Legislature having 
jurisdiction over appropriations and financial affairs, taxation matters, labor matters and 
economic and community development matters on the progress of and participation levels 
in the pilot project and submit a final report that details the economic and social effect of a 
4-day workweek on the participating employers; the effect of a 4-day workweek on the 
well-being and work life of participating employees; and any findings or recommendations 
based on the research conducted on a 4-day workweek.  The State Tax Assessor is also 
required to submit an annual report on the tax credit.