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An Act To Exempt Certain Individuals Who Are 70 Years of Age or Older from Maine Income Tax
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5117  is enacted to read:
§ 5117. Exemption for individual who is 70 years of age or older
 
1.  Certain retirees.     For taxable years beginning on or after January 1, 2018, the following individuals are exempt from tax under this Part:
 
A.  A retired individual filing as an individual or a head of household who is 70 years of age or older; or
 
B.  Retired married individuals filing jointly or filing separately when both individuals are retired and 70 years of age or older.
 
An individual is considered retired if during the tax year the individual is employed for fewer than an average of 20 hours per week, earns less than $10,000 in compensation during the tax year and receives or is eligible to receive social security benefits or railroad retirement benefits paid by the United States or retirement plan benefits for government service or employment that is considered noncovered service under 42 United States Code, Section 415(a)(7).
 
SUMMARY
This bill provides a 100% income tax exemption for a retired individual who is 70 years of age or older.