An Act to Amend the
Maine Legislature, Session 132, LD 0714
Committee Amendment CA_A_H944 (House)
Amends: 36 MRSA §5122, 36 MRSA §5125

COMMITTEE AMENDMENT " f\ " to H.P. 453, L.D. 714, "An Act to Amend the
Tax Laws"
Amend the bill by striking out the title and substituting the following:
'An Act to Allow the Victim of a Fraudulent Scheme to Claim a State Income Tax
Deduction for Losses Attributable to the Fraudulent Scheme'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 36 MRSA §5122, sub-§2, ^BBB is enacted to read:
BBB, For taxable years beginning on or after January 1, 2023. to the extent included
m federal adjusted gross mcome and not otherwise removed from Maine taxable
income, an amount equal to the federal deduction claitned by a taxpayer who was the
victim of a fraudulent scheme for losses attributable to that fraudulent scheme pursuant
to the Code. Section 165fcV2') for the same taxable year.
Sec. 2. 36 MRSA §5125, sub-§3, ^C, as amended by PL 2017,c.211, Ft. D, §2,
is further amended to read:
C. Reduced by any amount of deduction attributable to income taxable to financial
institutions under chapter 8 19; so4
Sec. 3. 36 MRSA §5125, sub-§3, ^[D, as amended by PL 2017, c. 211, Pt. D, §3,
is further amended to read:
D. Reduced by any amount attributable to interest or expenses incurred in the
production of income exempt from tax under this Part-: and
Sec. 4. 36 MRSA §5125, sub-§3,^]H is enacted to read:
H. Reduced by an amount equal to the federal deduction claimed because the
individual was the victmi of a fraudulent scheme forjosses_atfributable^^^^to^^^^^^
fraudulent scheme pursuant to the Code. Section 165fcy2) and deducted under section
5122. subsection 2. paragraph BBB for the same taxable year.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "A" to H.P. 453, L.D. 714
Sec. 5. 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 to implement a state
income tax subtraction modification for losses attributable to certain fraudulent financial
schemes.
GENERAL FUND 2025-26 2026-27
All Other $0 $56,980
GENERAL FUND TOTAL $0 $56,980
See. 6. Retroactivity. This Act applies retroactively to tax years begumiag on or
after January 1,2023.'
Amend the bill by reletteriag or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment replaces the bill, which is a concept draft, and changes the title. This
amendment provides that, for tax years beginning on or after January 1, 2023, a taxpayer
who was the victim of a fraudulent scheme and claims a federal deduction under Code,
Section 165(c)(2) for losses attributable to that fraudulent scheme is entitled to subtract
from the taxpayer's state income an amount equal to the amount of the federal deduction
claimed for that same tax year.
FISCAL NOTE REQUIRED
(See attached)
Page2-132LR1239(02)
COMMITTEE AMENDMENT
Approved: 03/25/26 i-Kt-
LD 714 LR 1239(02)
An Act to Amend the Tax Laws
Fiscal Note for Bill as Amended by Committee Amendment '^
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Net Cost (Savings)
General Fund
Appropriations/AlIocations
General Fund
$0
$0
$584,230
$56,980
$213,750 $223,250
$0
$0
Revenue
General Fund
Other Special Revenue Funds
$0
$0
($527,250)
($27,750)
($213,750)
($11,250)
($223,250)
($11,750)
Fiscal Detail and Notes
The bill would result in a revenue decrease to the General Fund of $527,250 in fiscal year 2026-27, $213,750 in fiscal
year 2026-27 and $223,250 in fiscal year 2028-29 from creating a state income tax deduction for losses attributable to
certain financial scams. The bill would also result m a revenue decrease to the Local Government Fund of $27,750 in
fiscal year 2026-27, $11,250 in fiscal year 2027-28 and$ll,750 in fiscal year 2028-29, The bill includes a one-time
General Fund appropriation to the Department of Administrative and Financial Services, Bureau of Revenue Services
of $56,980 in fiscal year 2026-27 administrative expenses to implement this change.
LR1239(02) - Fiscal Note • Page 1 of 1