Gov. Janet Mills has instructed her administration to investigate whether there are federal funds to pay state tax breaks on forgivable loans to Maine companies under the Paycheck Protection Program.
Business was strongly opposed to the language in the governor’s proposed supplementary budget, which only exempted income from loans from state income tax. Mills has now directed Maine Revenue Services to review the estimated costs that will allow these companies to offset the money spent as business expenses, as allowed under federal tax law.
“We believe we can solve the problem without messing up everything else. I think small businesses deserve this combination and our full support, ”says Mills.
She said she asked for a review of the data used to determine the $ 100 million price tag for the tax break permit.
“We have tax returns that can come from all types of corporations, LLCs, sole proprietorships, S-corps, and businesses large and small, and it’s really difficult to estimate that type of tax certificate so they were using national data,” says Mills .
She has also ordered the agencies to consider whether unused federal funds could be reallocated, and she hopes Congress will provide new funds to states that could be used to pay the double benefit.
“We believe the federal government will provide additional assistance, and we are, without leaving one stone unturned, looking for possible federal benefits that could be used to address this problem,” says Mills.