At the end of 2017, the federal government passed a significant tax reform package called the Tax Cuts and Jobs Act. After its passing, many states scrambled to pass their own legislation and guidance in response to the new federal tax laws. As of May 25th, 30 states have addressed tax reform in some way. Unfortunately for the people and businesses of Maine, our state is not one of them.
LD 1655, “An Act to Conform to the United States Internal Revenue Code of 1986 and Provide Tax Relief to Maine Families” is currently in limbo within the Maine legislature. As the legislature is no longer in session, the fate of this bill is unknown. Before the legislature adjourned, there were two version of the bill; the Democrat’s plan and the Republican’s plan.
Although both plans may never see the light of day in their current form, it is a good idea for us to begin looking at each plan now so that we can prepare for what may come. Below is a comparison of a few of the major highlights of each plan to current Maine law for 2018.
These are a few of the highlights that each party is proposing, but there are many more. Some other changes discussed in the plans include changes to individual and corporate tax rates, property tax fairness credit, 529 college savings plans, and more.