News

Governor’s administration looks to use federal funds to cover shortfall from tax-exempt PPP loans

Governor’s administration looks to use federal funds to cover shortfall from tax-exempt PPP loans

Photo: 560 WGAN Newsradio


Maine Governor Janet Mills says her administration is looking into whether there are any existing federal funds to help cover costs associated with the Paycheck Protection Program.

Mills has lauded the federal program, which offered loans to businesses impacted by the pandemic that would not be subject to federal taxes and allowed related expenses as deductions. But the governor’s administration says matching the federal tax treatment would result in a loss of state tax revenue of about $100 million, putting a hole in the state’s spending plan.

Mills on Wednesday announced that they’ll be looking for federal funding to avoid imposing a state tax on PPP loans while keeping the budget balanced, which is required under state law. That forced the administration to submit a budget which included revenue from a state tax on the loans.

Mills faced some backlash immediately following the announcement. The Maine Policy Institute issued a statement praising the plan for tax conformity, but said the administration should look to cut spending before looking for federal money.

Former Governor Paul LePage issued a scathing response on social media, accusing the governor of putting a “$100 million hit on Maine’s small businesses and job creators.”

Latest Headlines

23 minutes ago in Local

Threat prompts closure of Noble High and Middle schools on Halloween

Fresh

Noble Middle and High schools are closed on Friday following reports of a threat.

3 hours ago in Local

Maine State Police seek Patten man as part of ongoing investigation

Police are asking for help as they search for a Patten man.

10 hours ago in Sports, Trending

IOC and Saudi Arabia cancel their 12-year deal to host video gaming Esports Olympics in Riyadh

FILE -Olympic Rings are pictured in front of The Olympic House, headquarters of the International Olympic Committee (IOC) at the opening of the executive board meeting of the International Olympic Committee (IOC) in Lausanne, Switzerland, March 28, 2023. (Laurent Gillieron/Keystone via AP, File)

The IOC and Saudi Arabia have canceled their 12-year deal to host the video gaming Esports Olympics in Riyadh in a rare setback for a sports project backed by the oil-rich kingdom.

10 hours ago in National, Trending

Banks and retailers run short on pennies as the US Mint stops making them

A sign in a Kwik Trip store shows the store will no longer be using pennies to give change, on Oct. 23, 2025, in Yorkville, Wis. (AP Photo/Morry Gash)

President Donald Trump's decision to stop producing the penny earlier this year is starting to have real implications for the nation's commerce.

10 hours ago in Music, Trending

Universal Music and AI song generator Udio settle lawsuit and partner on new AI music platform

FILE - Taylor Swift arrives at the 67th annual Grammy Awards on Feb. 2, 2025, in Los Angeles. (Jordan Strauss/Invision/AP, File)

The rise of AI song generation tools like Udio has disrupted the $20 billion music streaming industry. Record labels accuse the platforms of exploiting the recorded works of artists without compensating them.