Maine 2025-2026 Regular Session

Maine House Bill LD1879

Introduced
5/1/25  
Refer
5/1/25  
Engrossed
6/10/25  

Caption

An Act to Support Maine's Agricultural Economy by Increasing Revenue from the Corporate Income Tax

Impact

The adopted measures in LD1879 aim to provide significant fiscal benefits to the agricultural community. By imposing a tax on larger corporate entities, the bill ensures a dedicated funding stream for agricultural initiatives and programs that can directly impact farmers and related businesses. Moreover, the proposed property tax exemption for newly constructed agricultural buildings is expected to encourage growth and investment in the agricultural sector by reducing financial burdens on farmers. This exemption is effective for building constructed after January 1, 2026, aiming to stimulate agricultural infrastructure development within the state.

Summary

LD1879, titled 'An Act to Support Maine's Agricultural Economy by Increasing Revenue from the Corporate Income Tax and Providing Property Tax Exemptions,' seeks to enhance the agricultural sector in Maine through tax reforms. The bill introduces an additional tax of 1.07% on corporate income exceeding $3,500,000, increasing the total corporate rate to 10%. The revenue generated will be allocated primarily to support agricultural programs, including dairy stabilization funds and various financial initiatives aimed at bolstering the agricultural industry in the state, particularly focused on economic recovery and resilience.

Sentiment

The sentiment around LD1879 appears generally supportive within agricultural circles. Advocates argue that the tax revenue dedicated to agriculture is a much-needed boost for the industry, which has faced numerous financial and operational challenges. However, there may be apprehension among businesses that could be impacted by the increased corporate income tax, reflecting a divided sentiment between those who see the benefits of supporting local agriculture and those concerned about higher tax obligations affecting corporate operations.

Contention

A notable point of contention surrounding the bill involves the implications of the increased corporate tax burden. While supporters emphasize the necessity for enhanced agricultural funding, critics might argue about the potential economic strain on large corporations operating in Maine. Additionally, the distribution of funds from the new tax raises questions about governance and the efficacy of how these resources will be utilized to truly benefit the agricultural sector. The success of LD1879 will likely hinge on balancing these financial responsibilities while ensuring robust support for local agriculture.

Companion Bills

No companion bills found.

Previously Filed As

ME LD835

An Act to Phase Out the Income Tax

ME LD1918

An Act to Modernize Maine's Business Incentive Programs by Creating the Dirigo Business Incentives Program and Eliminating Certain Other Tax Incentive Programs

ME LD2258

An Act to Create an Income Tax Credit for Investments in a Team's Qualified Minor League Baseball Facility to Keep the Team in the State

ME LD1726

An Act to Build Maine's Economy by Supporting Child Care for Working Families

ME LD1544

An Act to Improve Economic Security for Maine Children by Amending the Maine Dependent Exemption Tax Credit

ME LD258

An Act Making Unified Appropriations and Allocations from the General Fund and Other Funds for the Expenditures of State Government and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2023, June 30, 2024 and June 30, 2025

ME LD1337

An Act to Require a Biennial Report on the Corporate Income Tax to the Joint Standing Committee Having Jurisdiction over Taxation Matters

ME LD283

An Act to Make Technical Changes to the Maine Tax Laws

ME LD1060

An Act to Support Municipal Public Safety by Increasing State-Municipal Revenue Sharing to 7 Percent

ME LD1995

An Act to Bolster Maine's Workforce and Economy by Increasing Assistance for Parents Pursuing Education and Employment and by Indexing Unemployment Benefits to the Unemployment Rate

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