Please do not leave this page until complete. This can take a few moments.
The Maine Legislature early Friday morning passed a compromise supplemental budget that will exempt more than 28,000 businesses from paying taxes on Paycheck Protection Program loans.
The $258 million supplemental budget also exempts more than 160,000 state residents who got unemployment benefits in 2020 from paying income tax on the benefits, provides $30 million for direct-care providers who were largely cut out of COVID-19 aid. The legislation also puts $8.2 million into the state's budget stabilization fund.
The budget passed 139-1 in the House and unanimously in the Senate after the initial one was rejected twice by Senate Republicans Thursday, who pushed for full compliance with federal tax code, including a provision that gives corporations a break on intangible exports.
The Legislature was under a tight deadline to pass the budget — the corporate tax filing deadline is Monday, and the Augusta Civic Center, where the session was held, was scheduled to become a vaccination site later on Friday.
The break on paying taxes on PPP loans represents about $100 million for Maine's small businesses, many of which are still struggling as the pandemic shutdown year anniversary arrives. State officials said the 28,000 businesses employ about 250,000 workers.
Gov. Janet Mills, who still must sign the package, said in a statement today that it's "a sensible, bipartisan agreement."
"As a result of this compromise, 160,000 unemployed Maine people and 28,000 Maine businesses that received PPP funds will receive important tax relief," she said.
The Portland Region Chamber of Commerce also lauded the budget passage in a news release, saying, "This bipartisan agreement ensures that those businesses and families hit hardest by the pandemic are able to enjoy tax relief and certainty as they continue to navigate the uncertainties that lie ahead. Agreements like this are evidence that our government is strongest when leaders put partisan differences aside to deliver on behalf on Maine people."
The chamber added, "Much work lies ahead in this legislative session, but we remain hopeful that the Maine Legislature can continue to work in good faith to protect jobs and rebuild our economy as our state recovers from the devastation wrought by COVID-19."
Provisions of the budget are:
On Thursday, a budget proposal failed twice, when Senate Republicans fought for adherence to federal tax code, including the FDII, part of the December 2017 tax law, which reduced taxes for corporations on things like patents, trademarks, and intellectual property. State budget officials said the code applies to less than a dozen businesses and represents about $8.3 million in taxes.
The amount included money for the rainy day fund as well as the veterans support money, pushed by state Sen. Brad Farrin, R-Norridgewock, and was included in the final budget as part of the compromise between Democrats and Republicans to get the budget passed.
“My colleagues and I were clear that we would never get behind lavish tax breaks that only benefit wealthy, multinational corporations. And we held firm," said Senate President Troy Jackson, D-Allagash, after the budget passed. "Three-martini lunches and offshore tax havens do nothing for the hardworking people who lost their job due to no fault of their own and or the struggling small businesses on Main Street."
Jackson said the Democrats "would rather put money in the budget stabilization fund than spend taxpayer money on frivolous tax breaks for companies that Maine people and Maine businesses aren’t asking for and don’t benefit from."
The Giving Guide helps nonprofits have the opportunity to showcase and differentiate their organizations so that businesses better understand how they can contribute to a nonprofit’s mission and work.
Learn MoreWork for ME is a workforce development tool to help Maine’s employers target Maine’s emerging workforce. Work for ME highlights each industry, its impact on Maine’s economy, the jobs available to entry-level workers, the training and education needed to get a career started.
Learn MoreFew people are adequately prepared for all the tasks involved in planning and providing care for aging family members. SeniorSmart provides an essential road map for navigating the process. This resource guide explores the myriad of care options and offers essential information on topics ranging from self-care to legal and financial preparedness.
Learn moreThe Giving Guide helps nonprofits have the opportunity to showcase and differentiate their organizations so that businesses better understand how they can contribute to a nonprofit’s mission and work.
Work for ME is a workforce development tool to help Maine’s employers target Maine’s emerging workforce. Work for ME highlights each industry, its impact on Maine’s economy, the jobs available to entry-level workers, the training and education needed to get a career started.
Few people are adequately prepared for all the tasks involved in planning and providing care for aging family members. SeniorSmart provides an essential road map for navigating the process. This resource guide explores the myriad of care options and offers essential information on topics ranging from self-care to legal and financial preparedness.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments