All Residential Electricity May Soon Be Exempt from Sales Tax in Maine

How much would any savings be compared to what all the green nonsense has cost us? Politicians should be crying bloody murder over states like NY and Mass blocking new natural gas pipeline construction rather than focusing on tiny band-aids for the damage they have done.

All Residential Electricity May Soon Be Exempt from Sales Tax in Maine

By Libby Palanza
February 17, 2026

Maine lawmakers are poised to support a bill expanding the state’s sales tax exemption for the sale and delivery of residential electricity.

Originating as a proposal to establish a refundable tax credit worth as much as $600, LD 2078 has since been amended to a more straightforward expansion of the existing structure.

Under current state law, the first 750 kilowatt hours of electricity are exempt from sales tax, as well as “off-peak residential electricity used for space heating or water heating.” Any electricity consumed by customers enrolled in low-income assistance programs is also exempted from sales tax.

The sponsors amendment offered by Rep. Kilton Webb (D-Durham) seeks to eliminate these qualifying categories, allowing the sale and delivery of all residential electricity across the board to be exempted from sales tax.
According to an Axios report from this past summer, Mainers saw the highest year-over-year increase in electricity costs nationwide between 2024 and 2025.

In just one year, from May 2024 to May 2025, Maine’s average residential energy costs increased by a staggering 36.3 percent.

Nationwide, there was an increase of just 6.5 percent during this same period.

Continue reading at https://www.themainewire.com/2026/02/all-residential-electricity-may-soon-be-exempt-from-sales-tax-in-maine/

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  • Willem Post

    That will be a false saving, because the state will just jack up some other taxes to offset the revenue loss

  • Dan McKay

    What about the Efficiency Maine Trust tax and the carbon dioxide tax that has no basis to exist. Or the REC payments that have no basis to exist because the EPA endangerment rule is gone.What about the NEB tax; it is based on the endangerment act that is gone. The Republicans are dropping the ball by allowing all the attacks on fossil fuels to remain intact. The ratepayers have absolutely no allies in the Maine Legislature.