Bill
Bill > LD1617
ME LD1617
ME LD1617An Act to Lower the Exclusion Amount for the Estate Tax and Create an Exclusion for Family Farms and Aquaculture, Fishing and Wood Harvesting Businesses
summary
Introduced
04/11/2025
04/11/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
05/28/2025
05/28/2025
Introduced Session
132nd Legislature
Bill Summary
This bill lowers the exclusion amount, below which the Maine estate tax does not apply, to $1,000,000 from the $5,600,000 in current law for estates of decedents dying on or after January 1, 2026. The bill also creates an additional exclusion amount from the estate tax for family farms and aquaculture, fishing and wood harvesting businesses of up to $3,800,000. This additional exclusion applies to farmland or depreciable machinery and equipment used in commercial agriculture, aquaculture, fishing or wood harvesting that is inherited by a family member and remains in commercial use for 5 years following transfer.
AI Summary
This bill makes significant changes to Maine's estate tax law by lowering the estate tax exclusion amount and creating a special exclusion for family-owned agricultural and resource-based businesses. Specifically, the bill reduces the Maine estate tax exclusion amount from $5,600,000 to $1,000,000 for estates of individuals dying on or after January 1, 2026. To help mitigate the impact of this reduction, the bill introduces a new additional exclusion of up to $3,800,000 for farmland, machinery, and equipment used in commercial agriculture, aquaculture, fishing, or wood harvesting. To qualify for this additional exclusion, the property must be transferred to a family member and remain in commercial use for at least five consecutive years following the transfer. If the property fails to meet these requirements during the five-year period, the owner becomes subject to the full estate tax based on the fair market value of the transferred assets. The bill defines key terms such as "commercial agricultural production," "family member," and "depreciable machinery and equipment" to provide clarity on the scope of the new exclusion. This legislation aims to both generate more estate tax revenue and provide some protection for family-owned businesses in Maine's agricultural and natural resource sectors.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 05/28/2025)
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1617&snum=132 |
BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP1071&item=1&snum=132 |
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