LD1520 • 2025

An Act to Reduce the Income Tax Paid by Volunteers for Mileage Reimbursements

Taxes

Active

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

Sponsor: Representative Lydia Crafts
Last action: 2025-05-06
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 Reduce the Income Tax Paid by Volunteers for Mileage Reimbursements

An Act to Reduce the Income Tax Paid by Volunteers for Mileage Reimbursements Sponsor: Representative Lydia Crafts Reference committee: Taxation Latest committee action: Reported Out; ONTP

What This Bill Does

An Act to Reduce the Income Tax Paid by Volunteers for Mileage Reimbursements Sponsor: Representative Lydia Crafts Reference committee: Taxation 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

2025-05-06 Senate
Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
2025-05-01 Committee
Reported Out; ONTP
2025-04-29 Committee
Work Session Held
2025-04-29 Committee
Voted; ONTP
2025-04-08 House
Committee on Taxation suggested and ordered printed. The Bill was REFERRED to the Committee on TAXATION . Sent for concurrence. ORDERED SENT FORTHWITH.
2025-04-08 Committee
Referred to Committee on Taxation.

Official Summary Text

An Act to Reduce the Income Tax Paid by Volunteers for Mileage Reimbursements
Sponsor:
Representative Lydia Crafts
Reference committee:
Taxation
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. 1520
H.P. 1005 House of Representatives, April 8, 2025
An Act to Reduce the Income Tax Paid by Volunteers for Mileage
Reimbursements
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative CRAFTS of Newcastle.

Page 1 - 132LR1787(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 36 MRSA §5122, sub-§2, ¶AAA is enacted to read:
3 AAA. For tax years beginning on or after January 1, 2026, to the extent included in
4 federal adjusted gross income, any amount received as reimbursement for miles driven
5 in service of a charitable organization above the amount that the taxpayer would be
6 eligible for if the miles were driven for business purposes as determined using the
7 standard reimbursement rate for miles driven for business purposes as provided by the
8 United States Internal Revenue Service and as applicable to that tax year.
9SUMMARY
10 This bill reduces the income on which state tax is paid for certain travel reimbursements
11 received.
12 The United States Internal Revenue Service maintains standard rates for deductible
13 costs for the use of an automobile. Reimbursements received by an individual at a rate
14 above the applicable federal mileage rate may be taxable under federal law. Currently the
15 reimbursement rate for miles driven in service of charitable organizations is significantly
16 lower than the reimbursement rate for business purposes.
17 The bill provides that, for the purposes of income tax in this State, the only portion of
18 the reimbursements received for miles driven in service of a charitable organization that is
19 taxable is any amount that exceeds the amount that would be deductible under federal law
20 if the reimbursements were for miles traveled for business purposes as determined using
21 the standard reimbursement rate provided by the United States Internal Revenue Service
22 applicable to that tax year.
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