An Act to Lower
Maine Legislature, Session 132, LD 1954
Committee Amendment CA_A_S615 (Senate)
Amends: 36 MRSA §5213-A, 36 MRSA §5403

COMMITTEE AMENDMENT "/1 » to S,P. 762, L.D. 1954, "An Act to Lower
Household Costs by Expanding the Sales Tax Exemption for Certain Grocery Staples Sold
in Grocery Stores"
Amend the bill by sb-iking out the title and substituting the following:
'An Act to Update the Sales Tax Fairness Credit'
Amend the bill by striking out everything after the enacting clause and inserting the
following;
'See. 1. 36 MRSA §5213-A, sub"§l, ^[A-l, as enacted by PL 2017, c. 474, Pt. B,
§9, is amended to read:
A-1. 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 rehu'ns, $25 if they can claim the 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. 2. 36 MRSA §5213-A, sub-§l, ^A-2 is enacted to read:
A-l,_FQrJax years bemnninfi on or after January 1.2026. "base credit" means:
CD For single individuals. $170; and
COMMITTEE AMENDMENT
^"to8.P.762,L.D.19S4(i3-(
^
COMMITTEE AMENDMENT ";
f2) For individuals filing joint returns or as heads of households. $240 plus an
additional amount equal to:
(si) For individuals filing joint returns. $40 if they can claim the federal child
tax credit pursuant to the Code. Section 24 for no more than one auaHfvme
child or dependent or $75 if they cau claim the credit for more than one
qualifying child or dependent: or
(b) For individuals filine as heads of households. $40 if they_c.an 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 dependents.
Sec. 3. 36 MRSA §S213-A, sub-§4, as enacted by PL 2015, c. 267, Pl. DD, § 19,
is amended to read;
4. Phase-out of credit. The credit allowed under this section is phased out as follows.
Ar-For single individuals, th® oredit is reducod by $10 for eveiy-$-SOO or portion feereef
that owoodo $20,000 of tho inoomo.
B. For unmarried indmduals-oF-legally separated individuals-who qualify as hea^s-ef
households, tho credit is reduced by $ 15 for ovory $75 0 or portion thereof that OKeee^s
$30,000 of the incomo,
G. For individuals filing married joint returns or surviving opousos pormittod to file
joint returns, the credit is "reduced by $20 for ovoiy $1.;000 or portion thereof that
exoocds $^10,000 of the income.
D. For tax years beeinninfi: before January 1.2026:
(1) For sinale individuals. the credit is reduced by $10 for ever/ $500 or portion
thereof that exceeds $20.000 of the income:
(2) For unmarried individuals or leeallv seoarated individuals who qualify as
heads of households, the credit is reduced by $ 15 for every $750 or portiQnthereof
that exceeds $30.000 of the income: and
(3) For individuals filine married Joint returns or survivine SDQuses Dermitted tQ
file Joint returns, the credit is reduced bv $20Jbreverv $1,000 or oortion thereof
that exceeds $40.000 of the income.
E. For tax years beeinmne on or after January 1.2026:
(I) For single individuals. the credit is reduced by $10 for every $500 or portion
thereof that exceeds $34.000 of the income:
(2) For unmarried 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
f3) For individuals flliiw married joint returns or survivine^RQuses Dermitted to
file joint returns, the credit is reduced bv $20 for every $ 1.000 or oortion thereof
that exceeds $68.000 of the income.
See. 4. 36 MRSA §5403, sub-§5, ^A, as amended by PL 2017, c. 474, Ft. B,§22,
is further amended to read;
Page2-132LR1889(02)
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "/t- " to S.P. 762, L,D. 1954 C^is}
^.0
A. Beginning in 2018 and each year thereafter, by the base credit amounts in section
5213-A, subsection 1, paragraph A-l, including the additional amounts in section
5213-A. subsection 1. paragraph A-L subparagraph (2), divisions (a) and (b), except
^ 4 that for the purposes of this paragraph, notwithstanding section 5402, subsection 1-B,
^ 5 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; aad
Sec. 5. 36 MRSA §5403, sub-§5, fC, as amended by PL 2017, c. 474, Pt. B,§22,
is further amended to read:
C. Beginning in 2016 and each year thoroafter 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-Hving 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, 2015;
Sec. 6. 36 MRSA §5403, sub-§5, ^]D is enacted to read:
D. BeRJnnine in 2026 and each year thereafter, by the base credit amounts in section
5213-A. subsection 1. Daraeraoh A-2. includine the additional amounts in section
5213-A. subsection 1. paraeraoh A-2. subparasraph (2). divisions fat and (b\ except
that for the purposes of this oaraeraph. notwithstandine section 5402. subsection 1-B.
the "cost-of-livine adjustment" is the Chained Consumer Price Index for the 12-month
period endine June 30th of the orecedine calendar year divided bv the Chained
Consumer Price Index for the 12-month period ending June 30.2025, If the base credit
amount, adjusted by application of the cost-of-livine adjustment, is not a multiple of
$5. any increase must be rounded to the next lowest multiple of $5: and
See. 7. 36 MRSA §5403, sub-§5, ^E. is enacted to read:
E, Beainnine in 2026 and each year thereafter, by the dollar amount of the income
threshold set forth in section 5213-A. subsection 4. oarafii'aph E. except tjiatforfe^
purposes of this oaraaraph. notwithstandine section 5402. subsection 1-B. the "cost-of"
livine: adjustment" is the Chained Consumer Price Index for the 12-month period
endine June 30th of the orecedine calendar year divided by the Chained Consumer
Price Index for the 12-month period ending June 30.2025;'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment replaces the bill, changes the title and updates the sales tax fairness
credit for tax years beginning 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
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "ft " to S.P. 762, L,D. 1954 (5-
^0<
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, $5 1,000 for
heads of households and $68,000 for married joint filers. The updated credit is adjusted
annually for inflation.
FISCAL NOTE REQUIRED
(See attached)
Page4-132LR1889(02)
COMMITTEE AMENDMENT
Approved: 03/30/26
I^Rt.
LD 1954 LR 1889(02)
An Act to Lower Household Costs by Expanding the Sales Tax Exemption for Certain Grocery Staples
Sold in Grocery Stores
Fiscal Note for Bill as Amended by Committee Amendment "4' f3'{
Committee; Taxation
Fiscal Note Required: Yes
Fiscal Note
Net Cost (Savings)
General Fund
Revenue
General Fund
Other Special Revenue Funds
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
$0 $17,955,000 $17,385,000 $17.480,000
$0 ($17,955,000) ($17,385,000) ($17,480,000)
$0 ($945,000) ($915,000) ($920,000)
Fiscal Detail and Notes
The bill would result in a revenue decrease to the General Fund of $17,955,000 in fiscal year 2026-27, $17,385,000 in
fiscal year 2027-28 and $17,480,000 in fiscal year 2028-29 from updating the sales tax fairness credit. The bill would
also result in a revenue decrease to the Local Government Fund of $945,000 in fiscal year 2026-27, $915,000 in fiscal
year 2027-28 and $920,000 in fiscal year 2028-29.
LR1889(02) - Fiscal Note - Page 1 of 1