132nd MAINE LEGISLATURE
		LD 191		LR 274(02)
	An Act to Support Maine Businesses by Establishing a Pass-through Entity Tax and Tax Credit
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			FY 2025-26	FY 2026-27	Projections  FY 2027-28	Projections  FY 2028-29
Net Cost (Savings)
	General Fund		$0	($28,086,229)	($6,625,000)	($16,530,000)
Appropriations/Allocations
	General Fund		$0	$438,771	$0	$0
Revenue
	General Fund		$0	$56,525,000	($21,375,000)	$16,530,000
	Other Special Revenue Funds		$0	$2,975,000	($1,125,000)	$870,000
Transfers
	General Fund		$0	($28,000,000)	$28,000,000	$0
	Other Special Revenue Funds		$0	$28,000,000	($28,000,000)	$0
Fiscal Detail and Notes
	This bill would result in a revenue increase to the General Fund of $56,525,000 in fiscal year 2026-27, a decrease of $21,375,000 in fiscal year 2027-28 and an increase of $16,530,000 in fiscal year 2028-29 from establishing a pass-through entity tax. The bill would also result in a revenue increase to the Local Government Fund of $2,975,000 in fiscal year 2026-27, a decrease of $1,125,000 in fiscal year 2027-28 and an increase of $870,000 in fiscal year 2028-29. The bill creates a Pass-through Entity Tax Stabilization Fund and transfers $28,000,000 in fiscal year 2026-27 from the General fund to the fund and transfers $28,000,000 in fiscal year 2027-28 from the fund to the General Fund for the purpose of stabilizing the revenue impact of the pass-through entity tax. The bill includes a one-time General Fund appropriation to the Department of Administrative and Financial Services, Bureau of Revenue Services of $438,771 in fiscal year 2026-27 for administrative expenses to update the State's tax and administration system for a new optional account type for pass-through entities.