Maine Tax Changes 2026: A CPA Guide | HelloBooks Maine adopted most of the 2025 federal law for 2025 but not tips, overtime, car loan or senior deductions, and phases in 174A for large businesses.
Maine conformed to most of the 2025 federal law for tax year 2025, but left out every temporary below-the-line deduction and wrote its own research expensing schedule.
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174A addback, large business, 2025
100%
Applies: Tax years 2025 to 2029From IRS.gov · checked October 10, 2026
Maine Revenue Services’ summary says the Governor directed 2025 to be administered largely in conformity, and the legislature then adopted conformity broadly in line with that direction. The legislature did not extend conformity to the tips, overtime, car loan interest or senior deductions, and decoupled from the qualified production property allowance for 2025 and later.
Businesses with average annual gross receipts of $31 million or less conform fully and may amend 2022 to 2024 returns. Larger businesses add back the federal 174A deduction multiplied by a phase-in percentage:
A five-year addback schedule is easy to lose track of. Keep each year’s federal 174A figure with the client file so later years can be computed without reopening old returns. Maine sales tax is covered at /us/sales-tax/maine.
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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