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LD 1735

An Act To Provide An Income Tax Deduction For Certain Contributions To A Qualified Achieving A Better Life Experience Program Account

132nd Legislature (2025-2026) Introduced by Bruce Bickford and 1 co-sponsor

Maine allows income tax deductions for contributions to ABLE savings accounts, which help disabled individuals save without losing federal assistance benefits.

Died in Possession of the Senate when the Legislature adjourned Sine Die and was PLACED IN THE LEGISLATIVE FILES. (DEAD)
#betterlifeexperienceaccounts #deductions #incometax
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WeVote Research Nonpartisan
Bill Summary · LD 1735

Legislative bill overview

LD 1735 creates a state income tax deduction for Maine residents who contribute to Qualified Achieving A Better Life Experience (ABLE) Program accounts. ABLE accounts are tax-advantaged savings accounts designed for individuals with disabilities to accumulate funds for disability-related expenses without losing means-tested federal benefits. This bill aligns Maine's tax code with federal ABLE program incentives.

Why is this important

Individuals with disabilities often face significant financial barriers, as large savings can disqualify them from crucial federal assistance programs like SSI and Medicaid. By allowing a state income tax deduction for ABLE contributions, Maine reduces the tax burden on families saving for disability-related costs (medical care, housing, education, employment support), making it financially more feasible to build emergency reserves. This addresses a real gap: while ABLE accounts exist federally, not all states provide matching tax incentives, so this deduction could meaningfully encourage participation among Maine residents with disabilities and their families.

Potential points of contention

  • Revenue impact and fiscal cost: The bill reduces state tax revenue; the extent depends on participation rates and contribution levels, which may be difficult to predict.
  • Equity and eligibility: ABLE accounts require establishing disability before age 26; critics may question whether this adequately serves all Mainers with disabilities, or whether the deduction primarily benefits higher-income families able to contribute.
  • Coordination with federal benefits: While ABLE accounts are structured to preserve federal means-tested benefits, implementation details matter; any ambiguity in how Maine treats these accounts could create unintended consequences for benefit eligibility.

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

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