LD 1520 LR 1028(02)
An Act To Create and Sustain Jobs through Development of Cooperatives and Employee-owned Businesses
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
FY 2019-20 FY 2020-21 Projections  FY 2021-22 Projections  FY 2022-23
Net Cost (Savings)
General Fund $177,000 $197,250 $206,750 $211,500
General Fund $177,000 $50,000 $50,000 $50,000
General Fund $0 ($147,250) ($156,750) ($161,500)
Other Special Revenue Funds $0 ($7,750) ($8,250) ($8,500)
Fiscal Detail and Notes
The bill creates an income tax exclusion for employee stock ownership plans, eligible worker-owned cooperatives, consumer cooperatives and affordable housing cooperatives.  It would result in a reduction in General Fund revenue of $147,250 in fiscal year 2020-21 and a reduction in Local Government Fund revenue of $7,750 in fiscal year 2020-21.  The bill includes a one-time General Fund appropriation of $77,000 in fiscal year 2019-20 to the Department of Administrative and Financial Services for computer programming to update income tax filing forms.
This bill also includes ongoing General Fund appropriations of $100,000 in fiscal year 2019-20 and $50,000 per year beginning in fiscal year 2020-21 to the Business Development program within the Department of Economic and Community Development to contract with a nonprofit economic development organization to develop and manage a Maine Employee Ownership Center to assist businesses in the transition to employee or cooperative ownership.