An Act to Encourage New Residential Housing Through a Tax
Maine Legislature, Session 132, LD 1924
Committee: Taxation
Sponsors: WALKER
Amends: 36 MRSA §5122, 36 MRSA §5200-A

Legislative Document
No. 1924
H.P. 1285
House of Representatives, May 6, 2025
An Act to Encourage New Residential Housing Through a Tax 
Exemption for the Sale or Rental of Such Housing
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative WALKER of Naples.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5122, sub-§2, ¶AAA is enacted to read:
AAA.  For taxable years beginning on or after January 1, 2026 but before January 1, 
2031, to the extent included in federal adjusted gross income and to the extent 
otherwise subject to Maine income tax, the amount of any gain resulting from the sale 
of new residential housing in this State intended for occupancy by the purchaser or 
from the lease of new residential housing in this State intended for occupancy by the 
lessee.  As used in this paragraph, "new residential housing" means a residential unit 
of which at least half of the square footage has not been occupied in the 12 months 
prior to the unit's sale or lease and includes, but is not limited to, single-family and 
multi-unit residential housing, mobile homes and manufactured housing.  The 
deduction allowed by this paragraph may be taken for the taxable year in which the 
new residential housing is first occupied by the purchaser or lessee and continues until 
the new residential housing is no longer occupied by the purchaser or the lessee or the 
taxable year ending December 31, 2031, whichever occurs first.
Sec. 2.  36 MRSA §5200-A, sub-§2, ¶JJ is enacted to read:
JJ.  For taxable years beginning on or after January 1, 2026 but before January 1, 2031, 
to the extent included in federal adjusted gross income and to the extent otherwise 
subject to Maine income tax, the amount of any gain resulting from the sale of new 
residential housing in this State intended for occupancy by the purchaser or from the 
lease of new residential housing in this State intended for occupancy by the lessee.  As 
used in this paragraph, "new residential housing" means a residential unit of which at 
least half of the square footage has not been occupied in the 12 months prior to the 
unit's sale or lease and includes, but is not limited to, single family and multi-unit 
residential housing, mobile homes and manufactured housing.  The deduction allowed 
by this paragraph may be taken for the taxable year in which the new residential 
housing is first occupied by the purchaser or lessee and continues until the new 
residential housing is no longer occupied by the purchaser or the lessee or the taxable 
year ending December 31, 2031, whichever occurs first.
SUMMARY
This bill provides a 5-year moratorium beginning January 1, 2026 and ending 
December 31, 2031 on the levy of Maine income tax for a resident individual or a 
corporation that sells or leases new residential housing occupied by the purchaser or that 
leases new residential housing occupied by the lessee.  The bill defines "new residential 
housing" to mean a residential unit that at least half of the square footage of which has not 
been occupied in the 12 months prior to its sale or lease and includes single-family and 
multi-unit residential housing, mobile homes and manufactured housing.