Maine's Senate Bill 756, introduced on February 25, 2025, aims to bolster local economies by promoting employee and cooperative ownership of businesses. The bill introduces significant tax deductions for loans used to acquire majority equity in "qualified businesses," which are defined as non-publicly traded entities registered in Maine or with their principal place of business in the state.

Key provisions of the bill include the establishment of "qualified business acquisition loans," which must allocate at least 90% of their proceeds to acquiring majority ownership of eligible businesses. This includes employee stock ownership plans, S corporations owned by such plans, and various types of cooperatives. The bill seeks to address the pressing issue of job retention in businesses that might otherwise close due to ownership transitions.

Debate surrounding the bill has focused on its potential economic impact. Proponents argue that it will create a sustainable model for business ownership that keeps jobs in Maine, while critics express concerns about the long-term viability of such ownership structures and the implications for tax revenue. Amendments have been proposed to refine the definitions and eligibility criteria for qualified businesses and loans.

The bill's significance lies in its potential to reshape the business landscape in Maine by encouraging local ownership and preventing job losses. Experts suggest that if successful, this initiative could serve as a model for other states facing similar challenges in maintaining local employment and business continuity.

As the bill moves through the legislative process, ongoing evaluations will assess its effectiveness in achieving its stated public policy objectives, particularly in retaining jobs and fostering cooperative business models. The Office of Program Evaluation and Government Accountability will play a crucial role in monitoring the outcomes of the tax deductions introduced by the bill.