APPROVED CHAPTER
JUNE 17, 2025 336
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
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H.P. 144 - L.D. 221
An Act to Address the Effect of Changes to Federal Income Tax Laws on
Maine Income Tax Laws
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5231, sub-§4 is enacted to read:
4. Material budgetary impact. The assessor may not grant a generally applicable
extension of time for payment or filing that would have a material budgetary impact on the
State without the approval of the Commissioner of Administrative and Financial Services.
Prior to granting the approval, the commissioner shall report in writing to the Governor the
nature of the extension and its budgetary impact and shall send a copy of the report to the
President of the Senate, the Speaker of the House of Representatives, the majority and
minority leaders of the Senate and House of Representatives, the chair of the joint standing
committee of the Legislature having jurisdiction over taxation matters and the chair of the
joint standing committee of the Legislature having jurisdiction over appropriations and
financial affairs.
Sec. 2. 36 MRSA §5295 is enacted to read:
§5295. Temporary adjustments to Maine income tax filing requirements based on
federal changes
1. Federal income tax law changes; report. Whenever it appears to the
Commissioner of Administrative and Financial Services that the Legislature has not had
the opportunity before the bureau begins processing returns for the most recently completed
tax year to conform or adjust Maine laws in response to federal income tax law changes
affecting the tax year, the commissioner shall report in writing to the Governor a
description of the federal income tax law changes and their potential effect on Maine
income tax laws and the state budget. The commissioner shall timely send a copy of the
report to the President of the Senate, the Speaker of the House of Representatives, the
majority and minority leaders of the Senate and House of Representatives, the chair of the
joint standing committee of the Legislature having jurisdiction over taxation matters and
the chair of the joint standing committee of the Legislature having jurisdiction over
appropriations and financial affairs.
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 2. Determination by Governor of temporary adjustment of Maine income tax
filing requirements. After receiving the report pursuant to subsection 1, the Governor
may direct the assessor to temporarily adjust, in a manner determined equitable by the
Governor, the assessor's administration of the tax year based on some or all of the federal
income tax law changes as the Governor may equitably determine, contingent on the future
enactment by the Legislature of legislation that addresses the federal income tax law
changes. The Governor, to the extent practicable, shall make the determination consistent
with the intent of the Legislature in enacted Maine income tax laws and consider the
budgetary implications of the determination and the extent to which the determination
reduces the complexity of the affected tax year to ease taxpayers' compliance with, and the
bureau's administration of, Maine income tax laws.
3. Notice. Immediately upon making a determination pursuant to subsection 2, the
Governor shall notify the President of the Senate, the Speaker of the House of
Representatives, the majority and minority leaders of the Senate and House of
Representatives, the members of the joint standing committee of the Legislature having
jurisdiction over taxation matters and the chairs of the joint standing committee of the
Legislature having jurisdiction over appropriations and financial affairs of the specific
direction provided to the assessor and the effect of that determination on Maine income tax
laws and the state budget.
Upon receipt of notice pursuant to this subsection, the joint standing committee of the
Legislature having jurisdiction over taxation matters may convene to consider action taken
under this section. A hearing held under this section must be held with public notice
provided at least 2 full weeks prior to the day of the hearing. The joint standing committee
may report out a bill related to the report to the session of the Legislature to which the
report is submitted or, if the Legislature is not in session, to the next regular or special
session of the Legislature occurring after submission of the report.
4. Action by assessor. Upon receiving the direction of the Governor pursuant to
subsection 2, the assessor shall proceed in accordance with that direction, including in the
processing of income tax returns and notices, the acceptance of tax payments and the
issuance of refunds.
The tax return filing instructions or related public information must:
A. State that the tax return filing instructions and processing of those returns are, in
whole or in part, contingent on the enactment by the Legislature of legislation that
addresses federal income tax law changes;
B. Explain that a taxpayer may choose to wait for the enactment by the Legislature of
legislation that addresses federal income tax law changes by filing under extension
pursuant to section 5231, subsection 4;
C. Require a taxpayer that files a tax return to do so in a manner consistent with the
issued tax returns, forms, instructions and other guidance; and
D. State that if the Legislature enacts legislation that addresses federal income tax law
changes that are at variance with the filing instructions in effect at the time of filing:
(1) The affected taxpayer is not subject to interest or penalty for a resulting
underpayment related to the variance;
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(2) Any incorrect refund will not result in interest or penalty accruing prior to the
date of enactment of such legislation; and
(3) The affected taxpayer shall file an amended return to address the variance.
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