LD1622

Exempts certain income from Maine state income tax for tax years beginning on or after January 1, 2026.

This bill modifies Maine state income tax laws to exempt certain income from state income tax for tax years beginning on or after January 1, 2026. Specifically, it allows individuals to deduct from federal adjusted gross income for state income tax purposes all pension income, tip income, and overtime pay. The bill defines "employee retirement plan" and "individual retirement account" and specifies the conditions under which military retirement plan benefits are included. The exemption applies to income from these sources as reported on federal tax returns.