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LD 221

An Act To Address The Effect Of Changes To Federal Income Tax Laws On Maine Income Tax Laws

132nd Legislature (2025-2026) Introduced by Kristen Cloutier

LD 221 updates Maine income tax statutes to conform with recent federal tax changes, providing clarity and transitional rules for individuals, businesses, and tax preparers.

Signed by Governor
#federalconformity #incometax #updates
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WeVote Research Nonpartisan
Bill Summary · LD 221

LD 221 — An Act To Address The Effect Of Changes To Federal Income Tax Laws On Maine Income Tax Laws

Status: Signed by Governor (6/17/2025)
Introduced: January 16, 2025 | Committee: Taxation

Purpose / Intent

LD 221 is intended to address how recent changes in federal income tax law affect Maine’s income tax statutes. The bill’s title indicates its primary goal is to realign, clarify, or otherwise respond in Maine law to changes made at the federal level so that Maine’s tax treatment remains consistent, administrable and predictable for taxpayers and tax administrators.

Key provisions (based on available documents)

The full bill text is not included in the provided materials. The legislative documents show the bill was amended (Committee Amendment "A", H‑483) and enacted. Typical provisions in this type of legislation — and likely targets of LD 221 — include:
- Updating Maine statutory references to the Internal Revenue Code (IRC) as amended by recent federal legislation (i.e., specifying a date/version of the federal code to which Maine conforms).
- Providing transitional rules or clarifications to prevent unintended tax consequences from recent federal changes (for example, treatment of specific deductions, credits, or business provisions).
- Specifying whether Maine uses "rolling conformity" (automatically adopting federal changes) or "static conformity" (adopting federal law as of a specified date).
- Technical corrections to state tax statutes to reflect federal changes and to aid administration and compliance.

Because the bill text is not supplied, readers should consult the enacted bill text for exact statutory changes, effective dates, and any state-specific deviations from federal law.

Who is affected

  • Maine individual and corporate taxpayers (anyone whose state tax liability is linked to federal definitions or calculations).
  • Tax professionals, preparers and software providers who follow conformity rules.
  • Maine Revenue Services (Department administering income taxes) for implementation and guidance.
  • Potentially certain industries or taxpayers if the enacted changes decouple or modify treatment of specific federal provisions.

Fiscal impact

Two fiscal notes (05/30/2025 and 06/06/2025) approved by the Legislature report: No fiscal impact.

Legislative timeline / procedural history (highlights)

  • 01/16/2025: Bill introduced and referred to the Taxation Committee.
  • 03/27–04/10/2025: Committee work sessions; committee voted OTP‑AM (ought to pass as amended).
  • 06/04–06/05/2025: House actions — committee amendment H‑483 adopted; bill passed to be engrossed as amended.
  • 06/09/2025: Passed to be enacted; ordered sent for concurrence.
  • 06/17/2025: Signed by the Governor (enacted).

Notes / Next steps

  • The summary above is based on available legislative and fiscal records. For precise statutory changes, taxpayers and advisors should review the final enrolled bill text and any administrative guidance issued by Maine Revenue Services following enactment, including the bill’s effective date and any transitional provisions.

Compiled from official sources — confirm details with the bill’s official record.

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