Bill
Bill > LD1520
summary
Introduced
04/08/2025
04/08/2025
In Committee
04/08/2025
04/08/2025
Crossed Over
Passed
Dead
05/06/2025
05/06/2025
Introduced Session
132nd Legislature
Bill Summary
This bill reduces the income on which state tax is paid for certain travel reimbursements received. The United States Internal Revenue Service maintains standard rates for deductible costs for the use of an automobile. Reimbursements received by an individual at a rate above the applicable federal mileage rate may be taxable under federal law. Currently the reimbursement rate for miles driven in service of charitable organizations is significantly lower than the reimbursement rate for business purposes. The bill provides that, for the purposes of income tax in this State, the only portion of the reimbursements received for miles driven in service of a charitable organization that is taxable is any amount that exceeds the amount that would be deductible under federal law if the reimbursements were for miles traveled for business purposes as determined using the standard reimbursement rate provided by the United States Internal Revenue Service applicable to that tax year.
AI Summary
This bill modifies the state income tax treatment of mileage reimbursements for volunteers working with charitable organizations. Specifically, the bill provides that for tax years starting on or after January 1, 2026, only the portion of volunteer mileage reimbursements that exceeds the standard business mileage reimbursement rate set by the Internal Revenue Service (IRS) will be considered taxable income. This means volunteers who receive reimbursement for miles driven while serving a charitable organization will only pay income tax on amounts above the IRS's standard business mileage rate for that particular tax year. The goal of the bill appears to be to provide tax relief for volunteers by reducing their taxable income for charitable service-related travel expenses, recognizing that the current charitable mileage reimbursement rate is significantly lower than business mileage reimbursement rates.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 05/06/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1520&snum=132 |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP1005&item=1&snum=132 |
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