LD1504 • 2025

An Act to Support Small Businesses by Providing a Refundable Tax Credit to Certain Businesses to Offset Credit and Debit Card Transaction Fees

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Representative Wayne Farrin
Last action: 2025-05-27
Official status: Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

An Act to Support Small Businesses by Providing a Refundable Tax Credit to Certain Businesses to Offset Credit and Debit Card Transaction Fees

An Act to Support Small Businesses by Providing a Refundable Tax Credit to Certain Businesses to Offset Credit and Debit Card Transaction Fees Sponsor: Representative Wayne Farrin Reference committee: Health Coverage, Insurance and Financial Services Latest committee action: Reported Out; ONTP

What This Bill Does

An Act to Support Small Businesses by Providing a Refundable Tax Credit to Certain Businesses to Offset Credit and Debit Card Transaction Fees Sponsor: Representative Wayne Farrin Reference committee: Health Coverage, Insurance and Financial Services Latest committee action: Reported Out; ONTP

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-05-27 Senate
Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
2025-05-22 Committee
Reported Out; ONTP
2025-05-21 Committee
Work Session Held
2025-05-21 Committee
Voted; ONTP
2025-05-13 House
Representative CLOUTIER from the Committee on TAXATION Reporting that the Bill be REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES . Report was READ and ACCEPTED . The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES Sent for concurrence. ORDERED SENT FORTHWITH.
2025-05-13 Committee
Referred to Committee on Health Coverage, Insurance and Financial Services.
2025-05-06 Committee
Reported Out; REFERRED TO HCIFS
2025-04-29 Committee
Work Session Held
2025-04-29 Committee
Voted; REFERRED

Official Summary Text

An Act to Support Small Businesses by Providing a Refundable Tax Credit to Certain Businesses to Offset Credit and Debit Card Transaction Fees
Sponsor:
Representative Wayne Farrin
Reference committee:
Health Coverage, Insurance and Financial Services
Latest committee action:
Reported Out; ONTP

Current Bill Text

Read the full stored bill text

Printed on recycled paper
132nd MAINE LEGISLATURE
FIRST SPECIAL SESSION-2025
Legislative Document No. 1504
H.P. 988 House of Representatives, April 8, 2025
An Act to Support Small Businesses by Providing a Refundable Tax
Credit to Certain Businesses to Offset Credit and Debit Card
Transaction Fees
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative FARRIN of Jefferson.
Cosponsored by Senator RENY of Lincoln and
Representatives: CROCKETT of Portland, FLYNN of Albion, ROLLINS of Augusta,
SIMMONS of Waldoboro, STOVER of Boothbay, TERRY of Gorham.

Page 1 - 132LR2075(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 36 MRSA §5219-CCC is enacted to read:
3§5219-CCC. Credit card and debit card transaction fee tax credit
41. Definitions. As used in this section, unless the context otherwise indicates, the
5 following terms have the following meanings.
6 A. "Card issuer" means a person that issues a credit card or debit card or the agent of
7 such a person with respect to such a card.
8 B. "Credit card" has the same meaning as in Title 9-A, section 1-301, subsection 16.
9 C. "Debit card" has the same meaning as in Title 10, section 1271, subsection 3.
10 D. "Eligible business" means a business located in this State that has gross sales of
11 less than $2,400,000 annually.
12 E. "Fee" means the transaction fee imposed by a card issuer on a business for the use
13 of that card issuer's credit card or debit card.
142. Tax credit allowed. An eligible business that accepts credit cards or debit cards as
15 payment for goods or services sold by that business is allowed a credit against the tax
16 imposed by this Part to offset the fee imposed by the card issuer on the business. The
17 amount of the tax credit may not exceed the lesser of the actual fees paid by the business
18 and 2.5% of the sales tax remitted to the State by the business pursuant to chapter 219.
193. Credit refundable. The tax credit allowed under this section is refundable.
204. Record keeping. A business claiming a credit pursuant to subsection 2 is
21 responsible for maintaining records of the fee paid by the business and the total sales made
22 by that business annually.
235. Rules. The assessor may adopt routine technical rules pursuant to Title 5, chapter
24 375, subchapter 2-A to implement the provisions of this section.
25SUMMARY
26 This bill creates a tax credit for businesses with less than $2,400,000 in gross sales
27 annually that accept credit cards or debit cards for payment and are charged a transaction
28 fee by the issuer of that card. The amount of the tax credit is the amount of the fees the
29 business paid or 2.5% of the sales taxes remitted by that business to the State, whichever is
30 less. The tax credit is refundable.
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