Bill > LD2078

This bill establishes the Electricity Cost Fairness Credit, a refundable tax credit for individuals in Maine designed to help offset electricity costs. Starting in tax year 2026, residents and part-year residents can claim this credit, which is based on a "base credit" amount that varies depending on filing status (single, head of household, or married filing jointly) and whether they have qualifying children. The credit is calculated using a definition of "income" that includes federal adjusted gross income plus certain deductions and losses. The credit amount is then subject to a phase-out based on income levels, meaning higher earners will receive a reduced credit. Importantly, the credit is "refundable," meaning if the credit amount exceeds the taxes owed, the taxpayer will receive the difference back as a refund. The bill also includes provisions for indexing the credit amounts and income thresholds to inflation starting in 2027, using a specific measure of the Chained Consumer Price Index. Certain individuals, such as married taxpayers filing separately, those who don't meet residency requirements, or dependents claimed on another's return, are not eligible for this credit.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=2078&snum=132