Protect Maine’s Business Equipment Tax Incentives

Maine businesses are currently protected from local property taxes on essential equipment like forklifts, machinery, and technology. These incentives encourage investment and help keep the local economy moving.

The State is now proposing to end these incentives.

Without them, businesses could face new annual property taxes on the equipment they use every day.

Tell your legislators to protect this proven, pro-growth policy.

Dear [Lawmaker],

The Retail Lumber Dealers Association of Maine (RLDAM) represents the lumber and building materials (LBM) industry across the state. Our members are independent and family-owned businesses that collectively operate more than 100 retail locations and our industry employs nearly 7,000 people in Maine. These businesses supply the materials and services relied upon by builders, contractors, and homeowners in communities throughout the state.

RLDAM supports the continuation of Maine’s Business Equipment Tax Exemption (BETE) and Business Equipment Tax Reimbursement (BETR) programs, which play an important role in encouraging investment while helping to manage costs across the construction and housing supply chain.

Under Maine law, local governments may assess property taxes on business personal property, including machinery and equipment. The BETE and BETR programs were established to prevent this tax structure from discouraging investment in essential business equipment and to avoid adding unnecessary costs to the operation of Maine businesses.

For the lumber and building materials industry, this equipment includes forklifts, material-handling systems, sawmill and processing machinery, production and assembly equipment, point-of-sale systems, and core office and technology infrastructure. These assets are fundamental to daily operations and the efficient movement of materials to job sites and homeowners.

The cost of operating LBM businesses is directly tied to the cost of construction, renovation, and homeownership. When equipment investments are subject to recurring local property taxes, those costs are absorbed throughout the supply chain. By allowing businesses to reinvest in their operations rather than pay additional taxes on essential equipment, the BETE and BETR programs help limit cost pressures that ultimately affect builders, contractors, and consumers.

These programs support modernization, productivity, workplace safety, and long-term planning within the LBM industry. In doing so, they help keep materials flowing efficiently, support local employment, and contribute to the broader goal of housing affordability in Maine.

Given the scale of the lumber and building materials industry and its central role in supporting residential construction and home improvement, policies that encourage equipment investment contribute to a more stable and affordable housing market.

For these reasons, RLDAM supports the continuation of Maine’s Business Equipment Tax Exemption and Business Equipment Tax Reimbursement programs and the role they play in sustaining the LBM industry, supporting jobs, and helping keep housing and homeownership attainable for Maine families.

Sincerely,
______

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