Significant Tax Reform

• Lowered the top marginal individual income tax rate from 8.5% to 7.15%.  Largest tax cut in Maine history.
• Increased the death tax exemption from $1 million to $5.45 million (same as federal exemption and indexed for inflation).
• Expanded the Education Opportunity Tax Credit for businesses paying student loans of employees, allowing companies a dollar-for-dollar tax credits if they pay off their employees' student debt.
• Exempted Military Retiree Pension Income from the state income tax.
• Enacted an income tax exemption for active duty military pay earned outside of Maine.
• Exempted sales tax on fuel used in agriculture and forestry.
• Eliminated tax charged on meals in retirement facilities. 
• Stopped the automatic annual increase in the gas tax.
• Conformed personal exemptions and doubled the federal standard deduction; eliminated the marriage penalty and the alternative minimum tax.
• Adopted tax conformity with federal government to provide predictability for Maine's businesses to plan growth and investments.
• Increased pension exemption from $6,000 to $10,000 and extended the deduction to IRA income.