Republicans move to adopt full conformity to business proposals, issue ultimately tabled by Democrats
The Joint Standing Committee on Taxation in their work session of Thursday, January 28, voted to table the tax conformity issue following a motion by Rep. Ted Kryzak to adopt fully conformity to the federal government on LD 42, An Act Making Certain Supplemental Appropriations and Allocations and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government (Emergency). In total, the work session lasted nearly 25 minutes.
This was the second work session on the supplemental budget bill, following a joint public hearing on the bill with the Joint Standing Committee on Appropriations and Financial Affairs. At the public hearing on Monday, January 25, the Maine State Chamber testified in opposition to several provisions in the supplemental budget proposal primarily because it did not conform to the federal government’s treatment of the Paycheck Protection Program (PPP) loans, net operating losses, or the business interest deduction. It also eliminated the Federal Derived Intangible Income (FDII) provision.
At Monday’s public hearing, there were a total of six testimonies provided through Zoom – five in opposition to LD 42 and one in favor. The five opponents represented business organizations that were concerned primarily with conformity relating to the same business provisions that concerns the Maine State Chamber.
At the work session on Tuesday, January 26, the committee reviewed the individual sections of LD 42 and voted on the less controversial sections of the bill, leaving the more controversial sections for Thursday’s discussion. However, the committee meeting on Thursday ended quickly after the motion to fully conform was made. The committee is expected to continue work sessions on LD 42 on Tuesday, February 2. The Taxation committee is scheduled to report back to Appropriations committee by Friday, February 5.
If you have further questions, please contact Linda Caprara, senior government relations specialist for the Maine State Chamber of Commerce, by emailing her or calling (207) 623-4568, ext. 106. r