An Act To Repeal the Alternative Minimum Tax
Maine Legislature, Session 125, LD 0836
Committee: Taxation
Sponsors: KNIGHT, HASTINGS, BENNETT, CHASE, CURTIS, DAVIS, HARMON, RICHARDSON, TIMBERLAKE, WATERHOUSE
Amends: 36 MRSA §5203-C, 36 MRSA §5217-A, 36 MRSA §5219-H, 36 MRSA §5219-N

Legislative Document 
No. 836 
H.P. 633 
House of Representatives, March 3, 2011 
An Act To Repeal the Alternative Minimum Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative KNIGHT of Livermore Falls. 
Cosponsored by Senator HASTINGS of Oxford and 
Representatives: BENNETT of Kennebunk, CHASE of Wells, CURTIS of Madison, DAVIS 
of Sangerville, HARMON of Palermo, RICHARDSON of Warren, TIMBERLAKE of Turner, 
WATERHOUSE of Bridgton. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5203-C, as amended by PL 2009, c. 434, §77, is repealed. 
Sec. 2.  36 MRSA §5217-A, as amended by PL 2003, c. 673, Pt. JJ, §4 and 
affected by §6, is further amended to read: 
§5217-A.  Income tax paid to other taxing jurisdiction 
A resident individual is allowed a credit against the tax otherwise due under this Part, 
excluding the tax imposed by section 5203-C, for the amount of income tax imposed on 
that individual for the taxable year by another state of the United States, a political 
subdivision of any such state, the District of Columbia or any political subdivision of a 
foreign country that is analogous to a state of the United States with respect to income 
subject to tax under this Part that is derived from sources in that taxing jurisdiction.  In 
determining whether income is derived from sources in another jurisdiction, the assessor 
may not employ the law of the other jurisdiction but shall instead assume that a statute 
equivalent to section 5142 applies in that jurisdiction.  The credit, for any of the specified 
taxing jurisdictions, may not exceed the proportion of the tax otherwise due under this 
Part, excluding the tax imposed by section 5203-C, that the amount of the taxpayer's 
Maine adjusted gross income derived from sources in that taxing jurisdiction bears to the 
taxpayer's entire Maine adjusted gross income; except that, when a credit is claimed for 
taxes paid to both a state and a political subdivision of a state, the total credit allowable 
for those taxes does not exceed the proportion of the tax otherwise due under this Part, 
excluding the tax imposed by section 5203-C, that the amount of the taxpayer's Maine 
adjusted gross income derived from sources in the other state bears to the taxpayer's 
entire Maine adjusted gross income. 
Sec. 3.  36 MRSA §5219-H, as repealed and replaced by PL 2003, c. 673, Pt. F, §1 
and affected by §2, is amended to read: 
§5219-H.  Application of credits against taxes 
1.  Meaning of tax.  Whenever a credit provision in chapter 822, other than section 
5219-W, allows for a credit "against the tax otherwise due under this Part," "against the 
tax imposed by this Part" or similar language, "tax" means all taxes under this Part, 
except the minimum tax imposed by section 5203-C and the taxes imposed by chapter 
827. 
2.  Meaning of tax liability.  Whenever a credit provided for in chapter 822 is 
limited by reference to tax liability, "tax liability" means the tax liability for all taxes 
under this Part, except the minimum tax imposed by section 5203-C and the taxes 
imposed by chapter 827. 
Sec. 4.  36 MRSA §5219-N, sub-§2, ¶A, as enacted by PL 1997, c. 557, Pt. E, §1 
and affected by §2 and Pt. G, §1, is amended to read: 
A.    An individual who is claimed as a dependent on another individual's income tax 
return; and. 
Sec. 5.  36 MRSA §5219-N, sub-§2, ¶B, as amended by PL 2003, c. 673, Pt. JJ, 
§5 and affected by §6, is repealed. 
SUMMARY 
This bill repeals the alternative minimum tax for both individual and corporate 
taxpayers.