131st MAINE LEGISLATURE
		LD 1873		LR 1495(02)
	An Act to Provide Heating Relief with Tax-free Home Energy Savings Accounts
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$0	$43,536,721	$50,565,830	$53,097,471
Appropriations/Allocations
	General Fund		$0	$311,721	$405,830	$419,971
Revenue
	General Fund		$0	($43,225,000)	($50,160,000)	($52,677,500)
	Other Special Revenue Funds		$0	($2,275,000)	($2,640,000)	($2,772,500)
Fiscal Detail and Notes
	This bill establishes an individual income tax deduction for electricity costs of up to $2,500 for electricity used in a taxpayer's household during the tax year. This deduction is estimated to affect more than 400,000 individual income tax returns annually. It will reduce General Fund revenue by $43,225,000 and  Local Government Fund revenue by $2,275,000 in fiscal year 2024-25. The bill includes ongoing General Fund appropriations to the Department of Administrative and Financial Services, Bureau of Revenue Services beginning at $300,721 in fiscal year 2024-25 for one Senior Tax Examiner position and two Tax Examiner positions starting October 1, 2024 to audit tax returns claiming the income tax deduction for electricity costs. It also includes a one-time General Fund appropriation of $11,000 in fiscal year 2024-25 for computer programming costs associated with the new tax deduction.