Sen. Reny’s bill to support small businesses receives positive committee vote

AUGUSTA – On Thursday, March 27, 2025, the Joint Standing Committee on Taxation voted to advance LD 756, “An Act Creating and Sustaining Jobs Through the Development of Cooperatives and Employee-owned Businesses by Providing Tax Deductions for Certain Qualified Business Activities.” This bill, sponsored by Sen. Cameron Reny, D-Bristol, would incentivize the sale of businesses to its employees by providing a capital gains tax exemption to any business or farm that sells its assets to a cooperative or group of its employees.

“This is a bill to preserve Maine jobs and strengthen Maine businesses,” said Sen. Reny. “It will help to create an alternative exit opportunity for business owners in rural Maine, ensuring restaurants, shops, and farms can remain open, and helping hard-working Mainers keep their jobs.”

LD 756 will use a capital gains tax credit to incentivize business owners to sell or transfer their businesses to their employees. Up to $750,000 from a sale would be exempted from Maine capital gains tax. Additionally, it exempts from Maine income tax the interest on loans used to fund the employee or cooperative acquisition. This would reduce the cost of financing for this type of sale and incentivize sellers to hold the note if that is needed.

LD 756 now faces votes in the Senate and the House.

Sen. Reny represents Senate District 13, which includes most of Lincoln County and the towns of Washington and Windsor.

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