The Legislature’s Appropriations and Financial Affairs Committee endorsed a supplemental budget on an 8-5 party-line vote Thursday night that would give Maine businesses and unemployed Maine residents a break from paying taxes on relief funds they received during the COVID-19 pandemic.
Democrats and Republicans agreed to fully conform with the federal tax code so that more than 28,000 businesses would not pay state taxes on the Paycheck Protection Loans they received, a provision that would cost the state $100 million in tax revenue.
The supplemental budget also includes $47 million to exempt unemployment benefits from state income taxes and $30 million in state and federal funds to provide relief to direct care workers and nonprofits.
The disagreement between parties came when the parties couldn’t agree on how to spend more Federal aid that is likely to come from Congress.
The supplemental budget would need to receive the two-thirds support to pass. The proposal will go before the full Legislature for consideration at the Augusta Civic Center next week.