132nd MAINE LEGISLATURE
		LD 1879		LR 2291(02)
	An Act to Support Maine's Agricultural Economy by Increasing Revenue from the Corporate Income Tax and Providing Property Tax Exemptions
	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	($12,529,845)	($19,774,011)	($20,573,433)
Appropriations/Allocations
	General Fund		$0	$155,480	$0	$0
	Other Special Revenue Funds		$12,055,500	$28,383,175	$28,989,489	$28,988,067
Revenue
	General Fund		$0	$12,685,325	$19,774,011	$20,573,433
	Other Special Revenue Funds		$12,690,000	$30,544,675	$31,555,989	$31,596,567
Fiscal Detail and Notes
	This bill increases the top marginal corporate income tax rate to 10% on income over $3,500,000 for tax years beginning on or after January 1, 2026. The bill directs that the additional revenue be distributed in the following amounts, in the order of priority shown below, and to the extent funds are available:
			FY 2025-26	FY 2026-27	FY 2027-28	FY 2028-29
	Estimated Revenue		$12,690,000	$  43,230,000	$ 51,330,000	$ 52,170,000
	Local Government Fund		$     634,500	$    2,161,500	$   2,566,500	$   2,608,500
	Dairy Tier Stabilization Program		$12,055,500	$  19,383,175	$ 19,989,489	$ 19,988,067
	Maine Agriculture, Food and Forest Products Investment Fund		$             -	$    5,000,000	$   5,000,000	$   5,000,000
	Business Recovery and Resilience Fund		$             -	$    2,000,000	$   2,000,000	$   2,000,000
	Agricultural Marketing Loan Fund		$             -	$    1,000,000	$   1,000,000	$   1,000,000
	Dairy Improvement Fund		$             -	$    1,000,000	$   1,000,000	$   1,000,000
	Retained by General Fund		$             -	$  12,685,325	$ 19,774,011	$ 20,573,433
	This estimated distribution is based on the most recent Revenue Forecasting Committee report, dated May 1, 2025. The report is updated twice annually. The transfer amounts to the tier program and the remaining transfer to the General Fund, after all other required distributions are made, will adjust in future fiscal years to reflect the updated forecast. The bill includes corresponding allocations to authorize expenditure of the additional projected revenue.