An Act To Provide Tax Treatment Consistency for Limited Liability and S Corporations
Maine Legislature, Session 123, LD 2049
Committee Amendment CA_A_H919 (House)

COMMITTEE AMENDMENT" A " to H.P. 1433, L.D. 2049, Bill, "An Act To 
Provide Tax Treatment Consistency for Limited Liability and S Corporations" 
Amend the bill by inserting after the enacting clause and before section I the 
following: 
'Sec. 1. 36 MRSA §S122, sub-§l,~, as amended by PL 2007, c. 437, §16, is 
further amended to read: 
X. 
An amount equal to the taxpayer's federal deduction relating to income 
attributable to domestic production activities claimed in accordance with Section 102 
ofthe federal American Jobs Creation Act of2004, Public Law 108-357; aM 
Sec. 2. 36 MRSA §S122, sub-§l, ~, as enacted by PL 2007, c. 437, § 17 and 
affected by §22, is amended to read: 
Y. Any amount of allowable deduction claimed for federal purposes in accordance 
with the election under Section 642(g) of the Code that is also used to determine the 
taxable estate for purposes of calculating the Maine estate tax under chapter 575~; and 
Sec. 3. 36 MRSA §S122, sub-§l, ,Z is enacted to read: 
Z. For income tax years beginning on or after January 1,2008, a resident individual's 
proportional share of the amount of any creditable income tax deducted pursuant to 
Section 703 of the Code by a pass-through entity in which the individual is a 
member, when the individual claims the credit allowed by section 5217-A, subsection 
2, paragraph B with respect to those taxes.' 
Amend the bill by inserting after section 2 the following: 
'Sec. 3. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A "to H.P. 1433, L.D. 2049 
Revenue Services - Bureau of 0002 
Initiative: Provides funds for the administrative costs associated with the income 
modification for certain pass-through entities, including funds for a 0.25 FTE Tax 
Examiner position. 
GENERAL FUND 
2007-08 
2008-09 
POSITIONS - FTE COUNT 
0.000 
0.250 
Personal Services 
$0 
$6,756 
All Other 
$0 
$21,534 
GENERAL FUND TOTAL 
$0 
$28,290 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment ensures that amounts used to calculate the income tax credit for 
certain members of pass-through entities cannot also be used as a deduction from income. 
It also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/02/08 MaC 
LD 2049 
LR 3035(02) 
An Act To Provide Tax Treatment Consistency for Limited Liability and S Corporations 
Fiscal Note for Bill as Amended by Committee Amendment" A " 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
;Jpropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
$0 
$0 
$0 
$0 
2008-09 
$2,403,640 
$28,290 
($2,375,350) 
($127,653) 
Projections 
2009-10 
$2,022,847 
$24,722 
($ I ,998, I 25) 
($109,602) 
Projections 
2010-11 
$2,123,463 
$25,432 
($2,098,03 I) 
($1 15,082) 
Establishing an income tax credit for members of certain pass-through entities will reduce General Fund revenue by 
$2,375,350 in fiscal year 2008-09. This bill also includes a General Fund appropriation of$28,290 in fiscal year 2008-
for the additional costs associated with this income modification. 
LR3035(02) - Fiscal Note - Page I of I