Bill > LD1879

This bill introduces a new 1.07% additional corporate income tax on annual corporate income exceeding $3,500,000, bringing the total corporate tax rate to 10.0%. The revenue from this new tax will be specifically allocated to support Maine's agricultural sector through several targeted funds and programs. Specifically, the bill prioritizes funding for dairy stabilization support, a Dirigo business incentives program focused on agricultural businesses, a new 100% property tax exemption for agricultural buildings constructed after January 1, 2026, the Maine Agriculture, Food and Forest Products Investment Fund, a Business Recovery and Resilience Fund program, an Agricultural Marketing Loan Fund, and a Dairy Improvement Fund. The bill defines key terms such as "agricultural building" and "agricultural enterprise" and establishes a mechanism for municipalities to be reimbursed 100% of the property tax revenues lost due to the new agricultural building exemption. Any remaining tax revenue after these allocations will be transferred to the General Fund. The new tax and property tax exemption provisions will take effect for tax years beginning on or after January 1, 2026, and the property tax exemption will be in place until April 1, 2036.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1879&snum=132