MaineFraud victims could subtract qualifying losses from Maine taxable income
A proposed amendment would let qualifying fraud victims subtract a matching federal loss deduction from Maine taxable income for tax years starting in 2023.
What it does
Taxpayers who qualify for a federal deduction for losses from a fraudulent scheme could subtract the same amount from Maine taxable income, subject to limits.
The amendment lists $56,980 in one-time funding for tax administrators in 2026-27.
Argument forEligible fraud victims could subtract their federal loss deduction from Maine taxable income, which may lower their state tax bill.
Argument againstThe subtraction could reduce state income tax revenue when eligible taxpayers claim it, leaving the state with less tax money.
More detail
The proposed amendment would let eligible taxpayers subtract a qualifying federal fraud-loss deduction from Maine taxable income. It covers taxpayers who claim a federal deduction under Section 165(c)(2) of the federal tax code for losses from a fraudulent scheme. The taxpayer must have been a victim of the scheme and claimed the federal deduction for that same tax year. The subtraction applies only to the extent the amount is included in federal adjusted gross income and has not already been removed from Maine taxable income. The proposed subtraction would apply to tax years beginning on or after January 1, 2023.
The amendment would provide one-time state funding for tax administrators to implement the subtraction. The funding is for Maine Revenue Services administrative expenses. The listed $56,980 is for 2026-27. The funding is listed for 2026-27.
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Where it stands
- Introduced
- Passed 1st Chamber
- Became Law
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 29Died in Possession of the Senate when the Legislature adjourned Sine Die and was PLACED IN THE LEGISLATIVE FILES. (DEAD)Died
- Apr 6On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending ENACTMENT in concurrence.
- Apr 2Sent for concurrence. ORDERED SENT FORTHWITH.
- Apr 2PASSED TO BE ENACTED.Became Law
- Apr 2Ordered sent down forthwith.
- Apr 2Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-944), in concurrence.Minor
- Apr 2Committee Amendment "A" (H-944) READ and ADOPTED, in concurrence.Minor
- Apr 2READ ONCE.Minor
- Apr 2Report READ and ACCEPTED, in concurrence.
- Apr 2Sent for concurrence. ORDERED SENT FORTHWITH.
- Apr 2The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-944).Minor
- Apr 2Under suspension of the rules CONSENT CALENDAR - SECOND DAY.
- Apr 2CONSENT CALENDAR - FIRST DAY
- Mar 31Reported Out - OTP-AM
- Mar 19Voted - OTP-AM
- Mar 19Work Session Held
- 2025
- Jun 25Carry Over Approved
- Jun 25Carried over, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
- May 23Carry Over Requested
- Mar 21Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
- Feb 20The Bill was REFERRED to the Committee on TAXATION pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.Minor
- Feb 20Received by the Clerk of the House on February 20, 2025.Introduced
Taxes & Budget