Legislative hearing: lawmakers weigh refundable electricity‑cost credit against monthly utility assistance
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Summary
Representative Kilton Webb presented LD 2078 to create a refundable electricity‑cost tax credit of up to $600 per year. Supporters said a refundable credit would reach low‑income households; the Public Advocate urged funding the existing LIAP for monthly bill relief instead and recommended general‑fund support in the supplemental budget.
Representative Kilton Webb introduced LD 20 78 as a refundable income‑tax credit to provide targeted relief for eligible Mainers up to $600 annually to offset rising electricity costs. "This money would put this money would put back directly into the pockets of those who need it most," Webb said, explaining the credit would be structured like existing sales and property tax fairness credits and be refundable to reach households with low or no income tax liability.
Advocates including the Maine Center for Economic Policy supported refundability and targeting to make the state tax code more progressive. Maura Pillsbury of MECEP urged the committee to tie family adjustments to Maine’s dependency exemption so state policy, not federal changes, would determine payout eligibility.
The Office of the Public Advocate argued that a refundable tax credit, paid once a year, is less effective than boosting the existing low‑income assistance program (LIAP) that reduces electric bills monthly. Public Advocate Heather Sanborn told lawmakers the legislature had already passed design and funding recommendations for LIAP and urged the committee to fund LIAP through the supplemental budget rather than rely on a tax credit as a substitute: "We would rather see it flow through the existing low income assistance program structure as opposed to flowing through a tax credit," she said, noting the PUC and ratepayer funding already support LIAP and general fund dollars could close the funding gap.
Members asked for comparisons between LD 2078 income thresholds and LIAP eligibility, and for cost estimates and reach of each approach before the committee takes action.
What's next: committee staff and MRS will provide threshold comparisons and fiscal estimates; the committee may weigh LIAP supplemental funding against a refundable tax credit as parallel or alternative strategies for delivering relief.