Thanks to our Vice President of Advocacy, Linda Caprara, for closely tracking the latest developments on the state budget. The Appropriations Committee wrapped up work on L.D. 210 early Saturday morning, and the amended bill includes several key provisions impacting Maine businesses and taxpayers, from tax increases on streaming, tobacco, and real estate transfers to adjustments in education funding and child tax credits.

Below is Linda's summary: 

SUMMARY OF THE HIGHLIGHTS OF THE GOVERNOR’S PART II BUDGET BILL L.D. 210

The Joint Standing Committee on Appropriations and Financial Affairs concluded their work sessions on the Part II Budget Bill L.D. 210 in the early morning hours of Saturday, June 14th. The Committee voted along party lines, with Democrats voting in favor of L.D. 210 as amended and Republicans voting against the bill. The Office of Fiscal and Program Review is in the process of preparing the amendments and the legislation may be formally discharged from the Appropriations Committee as soon as this morning. This is a snapshot of what is in the proposed budget bill L.D. 210 as amended.

The Committee voted to continue free community college for two years and eliminated the provision in the budget that makes free community college permanent, but the Committee also voted to reduce funding for the community college system by $2.5 million over the two years. Lawmakers also voted to provide $5.9 million toward school meals for all children. The amended budget closes a funding gap of $122 million for Maine Care and doubles the child tax credit from $300 to $600. The budget also increases general assistance funding by $4 million. The Committee used one-time money of $24 million realized from the estate tax as additional revenue.

MAJOR NEW TAX PROVISIONS

• Increases Tobacco/Tobacco Products Tax by $1.50 per pack
• 50 cent per gallon tax on paint
• Changes in Cannabis Law Increases Tax from 10-14% shifts burden from growers to consumers
• Additional Taxes on Private Pensions, phases out the pension deduction for non-military pensions under the income tax based on the income of the taxpayer. The original proposal would have impacted over 22,000 taxpayers. It’s not clear how many taxpayers would be impacted under the new proposal. Phase-out begins for incomes over $125,000 single, $187,500 heads of household and $250,000 for married filing jointly.
• Increases the real estate transfer tax from $2.50 to $6 per $500 for real estate sales above $1 million
• Pays for public employees share of Paid Family Medical Leave for employees of Maine’s community college system, the University of Maine system and the Maine Maritime Academy.
• Sales Tax applied to Digital Streaming Services such as Netflix and Spotify.

​As Maine continues to grapple with economic uncertainty and slow job growth projections, the Maine State Chamber of Commerce is urging lawmakers to avoid policies that would further hinder the state’s competitiveness. In a recent letter to Maine’s legislative leadership, Chamber President and CEO Patrick Woodcock outlined strong opposition to proposed income tax increases—particularly those affecting retirees—and called for a renewed focus on economic growth, business investment, and workforce attraction.

​Read the full letter below.

The Maine State Chamber of Commerce, together with a coalition of partner associations, submitted a letter to the Joint Standing Committee on Judiciary regarding LD 1822.

In the letter, the organizations express appreciation for the committee’s work while outlining why they cannot support the bill in its current form. Their concerns focus on two key areas — the proposed data minimization language and the handling of sensitive data — both of which they argue could create unintended consequences for Maine businesses and consumers.

Click here to read the letter. 

In April, the Maine State Chamber of Commerce, alongside more than 20 leading business associations, economic groups, and regional chambers from across the state, sent a unified letter to legislative leaders urging immediate action on Maine’s affordability housing crisis.
 
When more than 20 leading organizations align behind a unified message to lawmakers, it shows just how critical — and widely felt — Maine’s housing challenges are.
 
This letter outlines a focused, bipartisan slate of recommendations that are both actionable and aligned with the independent analysis presented to the Legislature earlier this session. The breadth of support speaks volumes: economic and workforce development leaders across industries and regions agree that Maine’s housing shortage is one of the most serious threats to the state’s economy.
 
You can read the letter below. 

Last week, small business leaders representing retail, tourism, and other critical industries joined Representative Tiffany Roberts (D-South Berwick) to discuss the opportunity before the Maine legislature to pass strong data privacy legislation that both protects consumers and enables small businesses to thrive. 

Access to affordable digital tools allows Maine’s small businesses to attract and retain customers. Last week's conversation highlighted the importance of advancing regionally compatible data privacy legislation that balances consumer protection with small business competitiveness – specifically, LD 1224.  

Speakers included: 

• Rep. Tiffany Roberts, Maine State Legislature
• Rep. Rachel Henderson
• Patrick Woodcock, President and CEO, Maine Chamber of Commerce
• Nate Cloutier, Director of Government Affairs, Hospitality Maine 
• Roy Clark, Owner, Pinepoint Creative
• Brian Langley, Owner, Union River Lobster Pot
• Peter Guidi, Owner, Seagrass Inn
• Shelbi McCarthy, Marketing Director, Luke’s Lobster​

​Watch the conversation below!

For Immediate Release                                                                                                
Media Contact: Katie Clark
Monday, April 7, 2025                                                                                                               
Cell: 207-233-2230

AUGUSTA, Maine (April 7, 2025) – The Maine State Chamber of Commerce hosted its annual Business Day at the State House on Thursday, April 3, welcoming business leaders from across the state to connect directly with lawmakers and state officials on the issues that matter most to Maine’s economy.
 
Held in the historic Hall of Flags, the event brought together Maine companies and organizations showcasing their work, impact and innovations. Legislators had the opportunity to meet with business representatives, explore exhibits and engage in meaningful conversations about how to strengthen Maine’s business climate.
 
“This event is a powerful reminder that Maine’s economy is driven by the resilience of our business community,” said Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce. “Business Day at the State House is a clear example of the kind of collaboration we need — where employers and policymakers come together to listen, learn and lead. From stabilizing our workforce to unlocking housing solutions, the path forward must be shaped through strong partnerships. We’re committed to working with lawmakers to advance a positive business climate and secure a strong state economy in which Maine businesses can compete and succeed.”
 
The morning program featured remarks from key leaders, including:

• Speaker of the House Ryan Fecteau
• Patrick Woodcock, president and CEO, Maine State Chamber
• Michael Duguay, commissioner, Maine Department of Economic and Community Development
• Assistant House Minority Leader Katrina Smith

 
Exhibiting businesses and organizations included: Serra Public Affairs, MEMIC, AT&T, Casella Waste Systems, Central Maine Power, Fidelity Investments, General Dynamics Bath Iron Works, IDEXX Laboratories, the Maine Community College System, Maine DECD, McDonald’s Corp., Northern New England Passenger Rail Authority, Poland Spring, Springworks Farm, The Jackson Laboratory, and Versant Power.
 
The Chamber also proudly recognized two distinguished state officials with its 2025 Business Champion Awards:

• Melanie Loyzim, commissioner, Maine Department of Environmental Protection
• Dr. Michael Allen, associate commissioner for tax policy

 
These individuals were honored for their exemplary service, leadership and commitment to fostering a business-friendly climate in Maine.
 
The Chamber extended special thanks to event sponsors MEMIC, The Holy Donut, and Serra Public Affairs; to Headlight Audio Video for technical support; and to Maine’s local and regional chambers of commerce, whose ongoing support helps drive the state’s economic growth.
 
“Together, we can make Maine an even better place to live, work and do business,” Woodcock said.