WeVote
Log In

Bill

Bill

LD 366

An Act To Ensure Consistency Of Income Tax Deductions For Retired Members Of The Uniformed Services

132nd Legislature (2025-2026) Introduced by Mattie Daughtry and 8 co-sponsors

Expands Maine's pension income deduction to more retired uniformed service members, ensuring uniform tax treatment; effective Jan 1, 2026, with modest ongoing revenue losses.

Signed by Governor
#incometax #rate #uniformedservicemembers
0
WeVote Research Nonpartisan
Bill Summary · LD 366

Summary — LD 366

Title: An Act To Ensure Consistency Of Income Tax Deductions For Retired Members Of The Uniformed Services
Bill Number: LD 366
Status: Signed by Governor (July 1, 2025)
Introduced: January 30, 2025

Purpose

The bill expands eligibility for Maine’s pension income deduction to include additional retired members of the uniformed services so that their state income tax treatment is consistent with other retirees. The stated objective is uniformity in treatment of pension income for retired uniformed service members.

Key provisions

  • Expands eligibility for the existing pension income deduction to cover additional retired members of the uniformed services. (The enacted statutory text is not included here; the fiscal notes state the expansion of eligibility is the operative change.)
  • Effective date for the tax change: January 1, 2026.

Fiscal impact

  • General Fund: ongoing revenue decrease of $47,500 per year, beginning in FY 2026-27.
  • Local Government Fund: ongoing revenue decrease of $2,500 per year, beginning in FY 2026-27.
  • FY 2025-26: no net cost recorded (change becomes effective after the close of that fiscal year).
  • The fiscal notes indicate these are ongoing (annual) revenue reductions due to broader eligibility for the pension deduction.

Who is affected

  • Primary beneficiaries: retired members of the uniformed services (residents of Maine) who receive pension income and who become eligible for the pension income deduction under the expanded criteria.
  • State and local finances: modest annual reductions to state General Fund revenue and the Local Government Fund.

Timeline and legislative history

  • Referred to Taxation Committee: January 30, 2025.
  • Committee work sessions and an OTP‑AM recommendation; Committee Amendment "A" (S‑212) was adopted.
  • Passed both chambers (concurrence) in June 2025.
  • Signed by the Governor: July 1, 2025.
  • Tax change effective: January 1, 2026 (per fiscal notes).

Notes and limitations

  • The fiscal notes quantify the revenue impact but do not list the exact statutory language or which specific categories of uniformed service retirees are newly included; readers should consult the enacted bill text for precise eligibility criteria and statutory changes.

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

Sign in to ask a question.