AUGUSTA, Maine - The House and Senate, by wide margins, have approved the first bill of the session - a measure to conform Maine tax laws to federal income tax provisions.
The measure was debated, with opponents arguing that providing retroactive tax breaks doesn't help create jobs. House Republican Leader Ken Fredette of Newport disagreed.
"Send the message to the business community that we really care about them being here in Maine," Fredette said. "We want them to stay here in Maine. We want them to invest in Maine. We want them to hire Maine workers and provide jobs."
Opponents said a $10 million provision of the bill that allows businesses to write off the cost of equipment more quickly should be used instead to provide more property tax relief for seniors.
Supporters of the measure called that a false choice, pointing out that the tax conformity bill is just for one year, so any property tax relief for seniors would be limited.
"The bill before us, in its current form, uses roughly $10 million to extend a largely ineffective tax expenditure by extending bonus depreciation," said Orono Democratic Rep. Ryan Spitz-Tipping.
