An Act To Update References to the United States Internal Revenue Code of 1986 Contained in the Maine Revised Statutes
Maine Legislature, Session 128, LD 1655
Committee Amendment CA_B-SA_A_S496 (Senate)
Amends: 36 MRSA §111, 36 MRSA §5124-B, 36 MRSA §5124-C, 36 MRSA §5125, 36 MRSA §5126, 36 MRSA §5126-A, 36 MRSA §5213-A, 36 MRSA §5219-K, 36 MRSA §5219-S, 36 MRSA §5250, 36 MRSA §5403, 36 MRSA §5122, 36 MRSA §5164, 36 MRSA §5200-A, 36 MRSA §5203-C, 36 MRSA §5200, 5 MRSA §12004, 20-A MRSA §11471, 20-A MRSA §11472, 20-A MRSA §11477, 20-A MRSA §11479, 20-A MRSA §11484, 36 MRSA §4102, 36 MRSA §4119, 36 MRSA §2536, 36 MRSA §5219-U

SENATE AMENDMENT "A" to COMMITTEE AMENDMENT "B" to S.P. 612, 
L.D. 1655, Bill, "An Act To Update References to the United States Internal Revenue 
Code of 1986 Contained in the Maine Revised Statutes" 
Amend the amendment by striking out everything after the substitute title and 
inserting the following: 
'Amend the bill in the emergency preamble by striking out all of the first whereas 
paragraph (page 1, lines 3 to 5 in L.D.) and inserting the following: 
'Whereas, state tax law needs to be updated to conform to federal law before the 
90-day period expires to provide clarity and certainty regarding the effect of the changes 
in federal tax laws on state tax laws; and' 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'PART A 
Sec. A-1. 36 MRSA §111, sub-§1-A, as amended by PL 2017, c. 24, §1, is 
further amended to read: 
1-A. Code. "Code" means the United States Internal Revenue Code of 1986 and 
amendments to that Code as of Deeember 31, 2016 March 23, 2018. 
Sec. A-2. Application. This Part applies to tax years beginning on or after 
January 1, 2017 and to any prior tax years as specifically provided by the United States 
Internal Revenue Code of 1986 and amendments to that Code as of March 23, 2018. 
PARTB 
Sec. B-1. 36 MRSA §5124-B, as amended by PL 2017, c. 170, Pt. D, §§5 and 6, 
is further amended to read: 
SENATE AMENDMENT 
• 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
§5124-B. Standard deduction; resident on or after January 1, 2016 but before 
January 1, 2018 
For tax years beginning on or after January 1, 2016 but before January 1, 2018, the 
standard deduction of a resident individual is equal to the sum of the basic standard 
deduction and any additional standard deduction, subject to the phase-out under 
subsection 3. 
1. Basic standard deduction. The basic standard deduction is: 
A. 
For single individuals and married persons filing separate returns, the basic 
standard deduction is $11,600; 
B. For individuals filing as heads of household, the basic standard deduction is the 
amount allowed under paragraph A multiplied by 1.5; and 
C. 
For individuals filing married joint returns or surviving spouses, the basic 
standard deduction is the amount allowed under paragraph A multiplied by 2. 
2. Additional standard deduction. The additional standard deduction is the amount 
allowed under the Code, Section 63(c)(3). 
3. Phase-out. The total standard deduction of the taxpayer determined in accordance 
with subsections 1 and 2 must be reduced by an amount equal to the total standard 
deduction multiplied by the following fraction: 
A. For single individuals and married persons filing separate returns, the numerator 
is the taxpayer's Maine adjusted gross income less $70,000, except that the numerator 
may not be less than zero, and the denominator is $75,000. In no case may the 
fraction contained in this paragraph produce a result that is more than one.--+he 
$70,000 ammmt used to calc:ulate the numerator in this paragraph m1:1st be adj1:1sted 
for hrf1ation in acconfance with i;;ectim1 Mm. i;;uhi;;ection 4; 
B. For individuals filing as heads of households, the numerator is the taxpayer's 
Maine adjusted gross income less $105,000, except that the numerator may not be 
less than zero, and the denominator is $112,500. In no case may the fraction 
contained in this paragraph produce a result that is more than one. The $105,000 
amol:lllt used to calculate the numerator in this paragraph m1:1st be adj1:1sted for 
infl:::ition in RflflArcfanm:1 v.rith i;;gfltion 'i401. FllIDFlt'lfltim, 4; or 
C. For individuals filing married joint returns or surviving spouses, the numerator is 
the taxpayer's Maine adjusted gross income less $140,000, except that the numerator 
may not be less than zero, and the denominator is $150,000. In no case may the 
fraction contained in this paragraph produce a result that is more than one. The 
$140,000 amol:lllt used to eale1:1late the numerator in this paragraph m1:1st be adj1:1sted 
for frrf1ation in accordance with i;;ection 5403. i;;uhi;;ection 4. 
Sec. B-2. 36 MRSA §5124-C is enacted to read: 
§5124-C. Standard deduction; resident on or after January 1, 2018 
1. Amount. For tax years beginning on or after January 1, 2018, the standard 
deduction of a resident individual is equal to the standard deduction as determined in 
accordance with the Code, Section 63, subject to the phase-out under subsection 2. 
SENATE AMENDMENT 
\\ 
SENATE AMENDMENT"(\ "to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
2. Phase-out. The standard deduction of the taxpayer must be reduced by an amount 
equal to the total standard deduction multiplied by the following fraction: 
A. For single individuals and married persons filing separate returns, the numerator 
is the taxpayer's Maine adjusted gross income less $80,000, except that the numerator 
may not be less than zero, and the denominator is $75,000. In no case may the 
fraction calculated pursuant to this paragraph produce a result that is more than one. 
The $80,000 amount used to calculate the numerator in this paragraph must be 
adjusted for inflation in accordance with section 5403, subsection 4; 
B. For individuals filing as heads of households, the numerator is the taxpayer's 
Maine adjusted gross income less $120,000, except that the numerator may not be 
less than zero, and the denominator is $112,500. In no case may the fraction 
calculated pursuant to this paragraph produce a result that is more than one. The 
$120,000 amount used to calculate the numerator in this paragraph must be adjusted 
for inflation in accordance with section 5403. subsection 4; or 
C. For individuals filing married joint returns or surviving spouses permitted to file a 
joint return, the numerator is the taxpayer's Maine adjusted gross income less 
$160,000. except that the numerator may not be less than zero, and the denominator 
is $150,000. In no case may the fraction calculated pursuant to this paragraph 
produce a result that is more than one. The $160,000 amount used to calculate the 
numerator in this paragraph must be adjusted for inflation in accordance with section 
5403, subsection 4. 
Sec. B-3. 36 MRSA §5125, sub-§3, ,rA-1 is enacted to read: 
A-1. Increased by the amount of property taxes not claimed under the Code, Section 
164(a)(l) and (2) as a result of the limitation under the Code, Section 164(b)(6)(B); 
Sec. B-4. 36 MRSA §5125, sub-§6, as enacted by PL 2017, c. 170, Pt. D, §7, is' 
amended to read: 
6. Phase-out. For tax years beginning on or after January 1, 2016 but before January 
1, 2018, the total itemized deductions of the taxpayer determined in accordance with 
subsections 1 through 4 must be reduced by an amount equal to the total itemized 
deductions multiplied by the following fraction: 
A. For single individuals and married persons filing separate returns, the numerator 
is the taxpayer's Maine adjusted gross income less $70,000, except that the numerator 
may not be less than zero, and the denominator is $75,000. In no case may the 
fraction contained in this paragraph produce a result that is more than one.--+hs 
$70,000 amo1H1t used to oalGl:llate the BHmerator H1 this paragraph must be adjusted 
for iaflatioB H1 aooordaaoe with seotioa 5403. subseotioa 4; 
B. For individuals filing as heads of households, the numerator is the taxpayer's 
Maine adjusted gross income less $105,000, except that the numerator may not be 
less than zero, and the denominator is $112,500. In no case may the fraction 
contained in this paragraph produce a result that is more than one. The $105,000 
amolli'l:t used to oalol:llate the mnnerator m this paragraph must be adjusted for 
foflarioa iH aooordaHoe with ssotioH 5403. suhssotion 4; or 
SENATE AMENDMENT 
SENATE AMENDMENT" A 
"to COMMITTEEAMENDMENT"B"to S.P. 612, L.D. 1655 
C. For individuals filing married joint returns or surviving spouses, the numerator is 
the taxpayer's Maine adjusted gross income less $140,000, except that the numerator 
may not be less than zero, and the denominator is $150,000. In no case may the 
fraction contained in this paragraph produce a result that is more than one. +he 
$140,000 amount used to oaloulate the numerator in this _para_g:raph must be adjusted 
for 1ntlatim'l 1fl accordance with seotiofl 5403. RUhsection 4. 
Sec. B-5. 36 MRSA §5125, sub-§7 is enacted to read: 
7. Phase-out. For tax years beginning on or after January 1, 2018, the total itemized 
deductions of the taxpayer determined in accordance with subsections 1 through 4 must 
be reduced by an amount equal to the total itemized deductions multiplied by the 
following fraction: 
A. For single individuals and married persons filing separate returns, the numerator 
is the taxpayer's Maine adjusted gross income less $80,000, except that the numerator 
may not be less than zero, and the denominator is $75,000. In no case may the 
:fraction calculated pursuant to this paragraph produce a result that is more than one. 
The $80,000 amount used to calculate the numerator in this paragraph must be 
adjusted for inflation in accordance with section 5403, subsection 4; 
B. For individuals filing as heads of households, the numerator is the taxpayer's 
Maine adjusted gross income less $120,000, except that the numerator may not be 
less than zero, and the denominator is $112,500. In no case may the fraction 
calculated pursuant to this paragraph produce a result that is more than one. The 
$120,000 amount used to calculate the numerator in this paragraph must be adjusted 
for inflation in accordance with section 5403, subsection 4; or 
C. For individuals filing married joint returns or surviving spouses permitted to file a 
joint return, the numerator is the taxpayer's Maine adjusted gross income less 
$160,000, except that the numerator may not be less than zero, and the denominator 
is $150,000. In no case may the fraction calculated pursuant to this paragraph 
produce a result that is more than one. The $160,000 amount used to calculate the 
numerator in this paragraph must be adjusted for inflation in accordance with section 
5403, subsection 4. 
Sec. B-6. 36 MRSA §5126, as amended by PL 2011, c. 380, Pt. N, §11 and 
affected by §19, is further amended to read: 
§5126. Personal exemptions prior to 2018 
For income tax years beginning on or after January 1, 1998 but before January l, 
1999, a resident individual is allowed $2,400 for each exemption that the individual 
properly claims for the taxable year for federal income tax purposes, unless the taxpayer 
is claimed as a dependent on another return. For income tax years beginning on or after 
January 1, 1999 but before January 1, 2000, a resident individual is allowed $2,750 for 
each exemption that the individual properly claims for the taxable year for federal income 
tax purposes, unless the taxpayer is claimed as a dependent on another return. For 
income tax years beginning on or after January 1, 2000 but before January 1, 2013, a 
resident individual is allowed $2,850 for each exemption that the individual properly 
claims for the taxable year for federal income tax purposes, unless the taxpayer is claimed 
SENATE AMENDMENT 
SENATE AMENDMENT "A "to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
as a dependent on another return. For income tax years beginning on or after January 1, 
2013 but before January 1, 2018, a resident individual is allowed a deduction equal to the 
total amount of deductions allowed for personal exemptions in accordance with the Code, 
Section 151. 
Sec. B-7. 36 MRSA §5126-A is enacted to read: 
§5126-A. Personal exemptions on or after January 1, 2018 
1. Amount. For income tax years beginning on or after January 1, 2018, a resident 
individual is allowed a personal exemption deduction for the taxable year equal to 
$4,150, unless the individual may be claimed as a dependent on another return. A 
resident individual is allowed an additional personal exemption deduction for the taxable 
year equal to $4,150 if the individual is married filing a joint return, unless the 
individual's spouse may be claimed as a dependent on another return. The deduction 
allowed under this subsection is subject to the phase-out under subsection 2. 
For purposes of this subsection, "dependent" has the same meaning as in the Code, 
Section 152. 
2. 
Phase-out. 
The personal exemption deduction amount determined under 
subsection 1 must be reduced by an amount equal to the total personal exemption 
deduction amount multiplied by a fraction. The numerator of the fraction is the taxpayer's 
Maine adjusted gross income less the applicable amount, except that the numerator may 
not be less than zero, and the denominator is $62,500 in the case of a married individual 
filing a separate return and $125,000 in all other cases. In no case may the fraction 
contained in this paragraph produce a result that is more than one. The applicable amount 
used to calculate the numerator in this subsection must be adjusted for inflation in 
accordance with section 5403, subsection 8. 
For purposes of this subsection, "applicable amount" means: 
A. For single individuals, $266,700; 
B. For individuals filing as heads of households, $293,350; 
C. For individuals filing married joint returns or surviving spouses, $320,000; or 
D. For married individuals filing separate returns, one-half of the applicable amount 
under paragraph C. 
Sec. B-8. 36 MRSA §5213-A, sub-§1, 1A, as amended by PL 2015, c. 328, §4, 
is further amended to read: 
A. ~ 
For tax years beginning before January 1, 2018, "base credit" means: 
(1) For an individual income tax return claiming one personal exemption, $100 
for tax years beginning in 2016 and $125 for tax years beginning on or after 
January 1, 2017; 
(2) For an individual income tax return claiming 2 personal exemptions, $140 for 
tax years beginning in 2016 and $175 for tax years beginning on or after January 
1, 2017; 
SENATE AMENDMENT 
SENATE AMENDMENT" A 
"to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
(3) For an individual income tax return claiming 3 personal exemptions, $160 for 
tax years beginning in 2016 and $200 for tax years beginning on or after January 
l,2017;and 
(4) For an individual income tax return claiming 4 or more personal exemptions, 
$180 for tax years beginning in 2016 and $225 for tax years beginning on or after 
January 1, 2017. 
For the purposes of this paragraph, personal exemption does not include a personal 
exemption for an individual who is incarcerated. 
Sec. B-9. 36 MRSA §5213-A, sub-§1, ,fA-1 is enacted to read: 
A-1. For tax years beginning on or after January 1, 2018, "base credit" means: 
(1) For single individuals, $125; 
(2) For individuals filing joint returns or as heads of households, $175 plus an 
additional amount equal to: 
(a) For individuals filing joint returns, $25 if they can claim the federal child 
tax credit pursuant to the Code, Section 24 for no more than one qualifying 
child or dependent or $50 if they can claim the credit for more than one 
qualifying child or dependent; or 
(b) For individuals filing as heads of households, $25 if they can claim the 
federal child tax credit pursuant to the Code, Section 24 for 2 qualifying 
children or dependents or $50 if they can claim the credit for more than 2 
qualifying children or dependents. 
Sec. B-10. 36 MRSA §5213-A, sub-§1, ,rB, as enacted by PL 2015, c. 267, Pt. 
DD, §19, is amended to read: 
B. 
"Income" means federal adjusted gross income increased by the following 
amounts: 
(1) 
Trade or business losses; capital losses; any net loss resulting from 
combining the income or loss from rental real estate and royalties, the income or 
loss from partnerships and S corporations, the income or loss from estates and 
trusts, the income or loss from real estate mortgage investment conduits and the 
net farm rental income or loss; any loss associated with the sale of business 
property; and farm losses included in federal adjusted gross income; 
(2) Interest received to the extent not included in federal adjusted gross income; 
(3) 
Payments received under the federal Social Security Act and railroad 
retirement benefits to the extent not included in federal adjusted gross income; 
and 
(4) The following amounts deducted in arriving at federal adjusted gross income: 
(a) Educator expenses pursuant to the Code, Section 62(a)(2)(D); 
SENATE AMENDMENT 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
(b) Certain business expenses of performing artists pursuant to the Code, 
Section 62(a)(2)(B); 
( c) Certain business expenses of government officials pursuant to the Code, 
Section 62(a)(2)(C); 
( d) Certain business expenses of reservists pursuant to the Code, Section 
62(a)(2)(E); 
( e) 
Health savings account deductions pursuant to the Code, Section 
62(a)(l6) and Section 62(a)(19); 
(f) Moving expenses pursuant to the Code, Section 62(a)(15); 
(g) The deductible part of self-employment tax pursuant to the Code, Section 
164(f); 
(h) 
The deduction for self-employed SEP, SIMPLE and qualified plans 
pursuant to the Code, Section 62(a)(6); 
(i) 
The self-employed health insurance deduction pursuant to the Code, 
Section 162(1); 
(j) The penalty for early withdrawal of savings pursuant to the Code, Section 
62(a)(9); 
(k) Alimony paid pursuant to the Code, Section 62(a)(10); 
(1) The IRA deduction pursuant to the Code, Section 62(a)(7); 
(m) 
The student loan interest deduction pursuant to the Code, Section 
62(a)(l 7); and 
(n) The tuition and fees deduction pursuant to the Code, Section 62(a)(18)t 
and.,_ 
(o) 
The domestie prodl!etion aeti.vities dedl!etion pursllant to the Code. 
~getim:1 1 QQ_ 
Sec. B-11. 36 MRSA §5213-A, sub-§6, as corrected by RR 2015, c. 1, §42, is 
amended to read: 
6. Limitations. The following individuals do not qualify for the credit under this 
section: 
A. Married taxpayers filing separate returns; er 
B. Individuals who do not qualify as resident individuals because they do not meet 
the requirements of section 5102, subsection 5, paragraph A._;_QI 
C. Individuals who may be claimed as a dependent on another taxpayer's return. 
Sec. B-12. 36 MRSA §5219-KK, sub-§1, ,rA, as amended by PL 2017, c. 211, 
Pt. D, §6, is further amended to read: 
SENATE AMENDMENT 
SENATE AMENDMENT "A "to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
A. "Benefit For tax years beginning before January 1, 2018, "benefit base" means 
property taxes paid by a resident individual during the tax year on the resident 
individual's homestead in this State or rent constituting property taxes paid by the 
resident individual during the tax year on a homestead in the State not exceeding the 
following amounts: 
(1) For persons filing as single individuals, $2,000; 
(2) For persons filing joint returns or as heads of households that claim no more 
than 2 personal exemptions, $2,600; and 
(3) For persons filing joint returns or as heads of households that claim 3 or more 
personal exemptions, $3,200. 
Sec. B-13. 36 MRSA §5219-KK, sub-§1, 1A-1 is enacted to read: 
A-1. For tax years beginning on or after January 1, 2018, "benefit base" means 
property taxes paid by a resident individual during the tax year on the resident 
individual's homestead in this State or rent constituting property taxes paid by the 
resident individual during the tax year on a homestead in the State not exceeding the 
following amounts: 
(1) For persons filing as single individuals, $2,050; 
(2) For persons filing as heads of households that can claim the federal child tax 
credit pursuant to the Code, Section 24 for no more than one qualifying child or 
dependent or for persons filing joint returns, $2,650; and 
(3) For persons filing as heads of households that can claim the federal child tax 
credit pursuant to the Code, Section 24 for more than one qualifying child or 
dependent or for persons filing joint returns that can claim the federal child tax 
credit pursuant to the Code, Section 24 for at least one qualifying child or 
dependent, $3,250. 
Sec. B-14. 36 MRSA §5219-KK, sub-§1, ,r», as enacted by PL 2013, c. 551, 
§3, is amended to read: 
D. 
"Income" means federal adjusted gross income increased by the following 
amounts: 
(1) 
Trade or business losses; capital losses; any net loss resulting from 
combining the income or loss from rental real estate and royalties, the income or 
loss from partnerships and S corporations, the income or loss from estates and 
trusts, the income or loss from real estate mortgage investment conduits and the 
net farm rental income or loss; any loss associated with the sale of business 
property; and farm losses included in federal adjusted gross income; 
(2) Interest received to the extent not included in federal adjusted gross income; 
(3) 
Payments received under the federal Social Security Act and railroad 
retirement benefits to the extent not included in federal adjusted gross income; 
and 
SENATE AMENDMENT 
SENATE AMENDMENT "A "to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
( 4) The following amounts deducted in arriving at federal adjusted gross income: 
(a) Educator expenses pursuant to the Code, Section 62(a)(2)(D); 
(b) Certain business expenses of performing artists pursuant to the Code, 
Section 62(a)(2)(B); 
( c) Certain business expenses of government officials pursuant to the Code, 
Section 62(a)(2)(C); 
( d) Certain business expenses of reservists pursuant to the Code, Section 
62(a)(2)(E); 
( e) 
Health savings account deductions pursuant to the Code, Section 
62(a)(16) and Section 62(a)(19); 
(f) Moving expenses pursuant to the Code, Section 62(a)(15); 
(g) The deductible part of self-employment tax pursuant to the Code, Section 
164(f); 
(h) The deduction for self-employed SEP, SIMPLE and qualified plans 
pursuant to the Code, Section 62(a)(6); 
(i) The self-employed health insurance deduction pursuant to the Code, 
Section 162(1); 
G) The penalty for early withdrawal of savings pursuant to the Code, Section 
62(a)(9); 
(k) Alimony paid pursuant to the Code, Section 62(a)(l0); 
(1) The IRA deduction pursuant to the Code, Section 62(a)(7); 
(m) 
The student loan interest deduction pursuant to the Code, Section 
62(a)(l 7); and 
(n) The tuition and fees deduction pursuant to the Code, Section 62(a)(l8)t 
aoo.,, 
(o) 
The domestie prodaetion aetivities dedaetion pm:saant to the Code. 
gsetion 199. 
Sec. B-15. 36 MRSA §5219-KK, sub-§2, as amended by PL 2017, c. 211, Pt. D, 
§ 7, is further amended to read: 
2. Credit prior to 2018. A For tax years beginning before January 1, 2018, a 
resident individual is allowed a credit against the taxes imposed under this Part in an 
amount equal to 50% of the amount by which the benefit base for the resident individual 
exceeds 6% of the resident individual's income. The credit may not exceed $600 for 
resident individuals under 65 years of age as of the last day of the taxable year or $900 
for resident individuals 65 years of age and older as of the last day of the taxable year. In 
the case of married individuals filing a joint return, only one spouse is required to be 65 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
years of age or older to qualify for the $900 credit limitation. Married taxpayers filing 
separate returns do not qualify for the credit under this section. 
Sec. B-16. 36 MRSA §5219-KK, sub-§2-A is enacted to read: 
2-A. Credit in 2018 and after. For tax years beginning on or after January 1, 2018, 
a resident individual is allowed a credit against the taxes imposed under this Part equal to 
the amount by which the benefit base for the resident individual exceeds 6% of the 
resident individual's income. The credit may not exceed $750 for resident individuals 
under 65 years of age as of the last day of the taxable year or $1,200 for resident 
individuals 65 years of age and older as of the last day of the taxable year. In the case of 
married individuals filing a joint return, only one spouse is required to be 65 years of age 
or older to qualify for the $1,200 credit limitation. Married taxpayers filing separate 
returns do not qualify for the credit under this section. 
Sec. B-17. 36 MRSA §5219-SS is enacted to read: 
§5219-SS. Dependent exemption tax credit 
1. Resident taxpayer. A resident individual is allowed a credit against the tax 
otherwise due under this Part equal to $300 for each qualifying child and dependent of 
the taxpayer for whom the federal child tax credit pursuant to the Code, Section 24 was 
claimed for the same taxable year. 
2. Nonresident taxpayer. A nonresident individual is allowed a credit against the 
tax otherwise due under this Part equal to $300 for each qualifying child and dependent 
of the taxpayer for whom the federal child tax credit pursuant to the Code, Section 24 was 
claimed for the same taxable year, multiplied by the ratio of the individual's Maine 
adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the 
individual's entire federal adjusted gross income as modified by section 5122. 
3. Part-year resident taxpayer. An individual who files a return as a part-year 
resident in accordance with section 5224-A is allowed a credit against the tax otherwise 
due under this Part equal to $300 for each qualifying child and dependent of the taxpayer 
for whom the federal child tax credit pursuant to the Code, Section 24 was claimed for 
the same taxable year, multiplied by a fraction, the numerator of which is the individual's 
Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph A, 
for that portion of the taxable year during which the individual was a resident plus the 
individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, 
paragraph B, for that portion of the taxable year during which the individual was a 
nonresident and the denominator of which is the individual's entire federal adjusted gross 
income as modified by section 5122. 
4. Limitation and phase-out. The credit allowed by this section may not reduce the 
tax otherwise due under this Part to less than zero. The amount of the credit allowed by 
this section must be reduced, but not below zero, by $7.50 for each $1,000 or fraction 
thereof by which the taxpayer's Maine adjusted gross income exceeds $400,000 in the 
case of a joint return and $200,000 in any other case. 
Sec. B-18. 36 MRSA §5250, sub-§2, 18, as amended by PL 1997, c. 668, §36, 
is further amended to read: 
SENATE AMENDMENT 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
B. The dollar amount of each withholding allowance in this State must be equivalent 
to the amount of the personal exemption determined in section~ 5126-A whether 
the individual is a resident or a nomesident. 
Sec. B-19. 36 MRSA §5403, first ,r, as enacted by PL 2015, c. 267, Pt. DD, §33, 
is amended to read: 
On or about September 15th of each year as specified in subssctioas 1 to 6 this 
section, the assessor shall multiply the cost-of-living adjustment for taxable years 
beginning in the succeeding calendar year by the following: 
Sec. B-20. 36 MRSA §5403, sub-§2, as enacted by PL 2015, c. 267, Pt. DD, §33, 
is amended to read: 
2. Standard deductions. By In 2016, by the dollar amount contained in section 
5124-B, subsection 1, paragraph A, except that for the purposes of this subsection, 
notwithstanding section 5402, subsection 1-B, the "cost-of-living adjustment" is the 
Chained Consumer Price Index for the 12-month period ending June 30th of the 
preceding calendar year divided by the Chained Consumer Price Index for the 12-month 
period ending June 30, 2015; 
Sec. B-21. 36 MRSA §5403, sub-§4, as amended by PL 2017, c. 170, Pt. D, § 10, 
is further amended to read: 
4. Individual income tax standard deduction and itemized d~duction phase-out. 
Beginning in ;w.!+ 2018 and each year thereafter, by the dollar amount contained in the 
numerator of the fraction specified in section 5124 B 5124-C, subsection~ 2:, paragraphs 
A, B and C and section 5125, subsection 61, paragraphs A, Band C, except that for the 
purposes of this subsection, notwithstanding section 5402, subsection 1-B, the "cost-of-
living adjustment" is the Chained Consumer Price Index for the 12-month period ending 
June 30th of the preceding calendar year divided by the Chained Consumer Price Index 
for the 12-month period ending June 30, :20+6 2017; 
Sec. B-22. 36 MRSA §5403, sub-§5, as enacted by PL 2015, c. 267, Pt. DD, §33, 
is amended to read: 
5. Sales tax fairness credit. For the sales tax fairness credit: 
A. Beginning in ;w.!+ 2018 and each year thereafter, by the base credit amount 
amounts in section 5213-A, subsection 1, paragraph A A-1, including the additional 
amounts in subparagraph fB ill, divisions (a) and (b), except that for the purposes of 
this paragraph, notwithstanding section 5402, subsection 1-B, the "cost-of-living 
adjustment" is the Chained Consumer Price Index for the 12-month period ending 
June 30th of the preceding calendar year divined by the Chained Consumer Price 
Index for the 12-month period ending June 30, :20+6 2017. If the base credit amount, 
adjusted by application of the cost-of-living adjustment, is not a multiple of $5, any 
increase must be rounded to the next lowest multiple of $5; and 
B. Beginning ia 2017 aad each year thereafter, the bass credit amount in ssctioa 
5213 A, subsectioa 1, paragraph A, subparagraphs (2) to (4) is equal to the base 
credit amount determined ia accordaacs with oaraf:!'l'aoh A.. multiolisd b•,r the 
fo11mvin2' aoolisahle factor: 
SENATE AMENDMENT 
SENATE AMENDMENT "A "to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
(1) For seetio115213 f .. , subseetio111, paragraph f .. , subparagraph (2). 1.4: 
(2) For seetio11 5213 A, subseetio11 1, paragraph f .. , subparagraph (3). 1.6: a11d 
(3) For seetio115213 A, subseetio11 1. paragraph A. subparagraph (4). 1.8. 
If the base eredit amollllt, adjusted by applieatio11 of the appropriate faetor, is 11ot a 
multiple of $5, a11y illerease must be roooded to the 11eJct lowest ml:l±tiple of $5: a11d 
C. 
Beginning in 2016 and each year thereafter, by the dollar amount of the income 
threshold set forth in section 5213-A, subsection 4, except that for the purposes of 
this paragraph, notwithstanding section 5402, subsection 1-B, the "cost-of-living 
adjustment" is the Chained Consumer Price Index for the 12-month period ending 
June 30th of the preceding calendar year divided by the Chained Consumer Price 
Index for the 12-month period ending June 30, 2015; aBd 
Sec. B-23. 36 MRSA §5403, sub-§6, as enacted by PL 2015, c. 267, Pt. DD, §33, 
is amended to read: 
6. Property tax fairness credit. Beginning in 2().g 2018 and each year thereafter, 
the benefit base amounts in section 5219-KK, subsection 1, paragraph A: A-1. except that 
for the purposes of this subsection, notwithstanding section 5402, subsection 1-B, the 
"cost-of-living adjustment" is the Chained Consumer Price Index for the 12-month period 
ending June 30th of the preceding calendar year divided by the Chained Consumer Price 
Index for the 12-month period ending June 30, 2017; 
Sec. B-24. 36 MRSA §5403, sub-§§7 and 8 are enacted to read: 
7. Personal exemptions. Beginning in 2018 and each year thereafter, by the dollar 
amounts contained in section 5126-A, subsection 1. except that for the purposes of this 
subsection, notwithstanding section 5402, subsection 1-B, the "cost-of-living adjustment" 
is the Chained Consumer Price Index for the 12-month period ending June 30th of the 
preceding calendar year divided by the Chained Consumer Price Index for the 12-month 
period ending June 30, 2017; and 
8. Personal exemption phase-out. Beginning in 2018 and each year thereafter, by 
the dollar amount of the applicable amounts specified in section 5126-A, subsection 2, 
paragraphs A, B and C, except that for the purposes of this subsection, notwithstanding 
section 5402, subsection 1-B, the "cost-of-living adjustment" is the Chained Consumer 
Price Index for the 12-month period ending June 30th of the preceding calendar year 
divided by the Chained Consumer Price Index for the 12-month period ending June 30, 
2017. 
Sec. B-25. 36 MRSA §5403, 2nd ,r, as enacted by PL 2015, c. 267, Pt. DD, §33, 
is amended to read: 
Except for subsection 5, paragraphs paragraph A aoo-B, if the dollar amount of each 
item, adjusted by the application of the cost-of-living adjustment, is not a multiple of $50, 
any increase must be rounded to the next lowest multiple of $50. 
Sec. B-26. Application. Those sections of this Part that amend the Maine Revised 
Statutes, Title 36, section 5213-A, subsection 1, paragraph B; section 5213-A, subsection 
6; section 5219-KK, subsection 1, paragraph D; and section 5250, subsection 2, 
SENATE AMENDMENT 
SENATE AMENDMENT" A 
"to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
paragraph B and that enact Title 36, section 5125, subsection 3, paragraph A-1 and 
section 5219-SS apply to tax years beginning on or after January 1, 2018. 
PARTC 
Sec. C-1. 36 MRSA §5122, sub-§1, ,rx, as amended by PL 2007, c. 539, Pt. 
CCC, §2, is further amended to read: 
X. AH: For tax years beginning on or after January 1, 2005 but before January 1. 
2018. an amount equal to the taxpayer's federal deduction relating to income 
attributable to domestic production activities claimed in accordance with Section 102 
of the federal American Jobs Creation Act of 2004, Public Law 108-357; 
Sec. C-2. 36 MRSA §5122, sub-§1, ~L is enacted to read: 
LL. An amount equal to the net operating loss carry-forward claimed as a deduction 
under the Code. Section 172 in determining federal taxable income for the taxable 
year that was previously allowed as a deduction pursuant to subsection 2. paragraph 
PP. 
Sec. C-3. 36 MRSA §5122, sub-§2, ~pis enacted to read: 
PP. For taxable years beginning on or after January 1. 2018, to the extent otherwise 
deductible, an amount equal to the net operating loss carry-forward deduction 
disallowed as a result of the limitation under the Code, Section 172(a)(2). but only to 
the extent that: 
(1) Maine taxable income is not reduced below zero; and 
(2) The amount has not been previously used as a modification pursuant to this 
paragraph. 
Sec. C-4. 36 MRSA §5164, sub-§1, as amended by PL 2011, c. 548, §26 and 
affected by §35, is further amended to read: 
1. Fiduciary adjustment defined. The fiduciary adjustment is the net amount of the 
modifications described in section 5122, including subsection 3 if the estate or trust is a 
beneficiary of another estate or trust, that relates to items of income or deduction of an 
estate or trust. Ineome The following items. to the extent that they were deducted in 
calculating federal taxable income. must be added back to the fiduciary adjustment: 
income taxes imposed by this State or any other taxing jurisdiction; the amount of the 
qualified business income deduction determined under the Code. Section 199A: and 
interest or expenses incurred in the production of income exempt from tax under this Part 
that were dedueted in arriving at federal taxable ineome must be added baek to the 
fidueiazy adjustment. Interest or expenses incurred in the production of income taxable 
under this Part but exempt from federal income tax must be subtracted from the fiduciary 
adjustment. 
Sec. C-5. 36 MRSA §5200-A, sub-§1, ,rs, as amended by PL 2007, c. 700, Pt. 
B, §1, is further amended to read: 
SENATE AMENDMENT 
SENATE AMENDMENT" A" to COMMJTTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
S. AB For tax years beginning on or after January 1, 2005 but before January 1, 
2018, an amount equal to the taxpayer's federal deduction relating to income 
attributable to domestic production activities claimed in accordance with Section 102 
of the federal American Jobs Creation Act of 2004, Public Law 108-357; 
Sec. C-6. 36 MRSA §5200-A, sub-§1, ,rDD is enacted to read: 
DD. An amount equal to the net operating loss carry-forward claimed as a deduction 
under the Code, Section 172 in determining federal taxable income for the taxable 
year that was previously allowed as a deduction pursuant to subsection 2, paragraph 
BB. 
Sec. C-7. 36 MRSA §5200-A, sub-§2, ,i:BB is enacted to read: 
BB. For taxable years beginning on or after January 1, 2018, to the extent otherwise 
deductible, an amount equal to the net operating loss carry-forward deduction 
disallowed as a result of the limitation under the Code, Section 172(a)(2), but only to 
the extent that: 
(1) Maine taxable income is not reduced below zero; and 
(2) The amount has not been previously used as a modification pursuant to this 
paragraph. 
Sec. C-8. 36 MRSA §5203-C, sub-§2, ,re, as enacted by PL 2003, c. 673, Pt. JJ, 
§3 and affected by §6, is amended to read: 
C. 
Taxable corporations required to file an income tax return under this Part, 
excluding financial institutions subject to the tax imposed by chapter 819 and persons 
not subject to the federal alternative minimum tax under the Code, Section 55(e). 
The tax imposed by this subsection does not apply to taxable corporations for tax 
years beginning on or after January 1, 2018. 
Sec. C-9. Application. That section of this Part that amends the Maine Revised 
Statutes, Title 36, section 5164, subsection 1 applies to tax years beginning on or after 
January 1, 2018. 
PARTD 
Sec. D-1. 36 MRSA §5200-A, sub-§1, ,r,-EE and FF are enacted to read: 
EE. An amount equal to the taxpayer's deduction claimed in accordance with the 
Code, Section 965(c). 
FF. An amount equal to the taxpayer's global intangible low-taxed income deduction 
claimed in accordance with the Code, Section 250(a)(l)(B). 
Sec. D-2. 36 MRSA §5200-A, sub-§2, ,rG, as amended by PL 1997, c. 746, §10 
and affected by §24, is further amended to read: 
G. Fifty percent of the apportionable dividend income, net of related expenses and 
other related deductions deducted in computing federal taxable income, the taxpayer 
received during the taxable year from an affiliated corporation that is not included 
SENATE AMENDMENT 
SENATE AMENDMENT "A "to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
with the taxpayer in a Maine combined report, exeept that this modifieatioa mast be 
phased iB over 5 years iB aeeordaaee with the follov,ri.H:g sehedu-le:. Dividend income 
does not include subpart F income, as defined in the Code, Section 952, income 
included in federal taxable income in accordance with the Code, Section 951A or 
income included in federal taxable income in accordance with the Code, Section 965. 
Any amount subtracted from federal taxable income under this paragraph must be 
excluded from the sales factor of any apportionment formula employed to attribute 
income to this State; 
Taxable year begiBBiBg iB: 
Subtraetable dividend iBeome: 
~ 
-14% 
-1990 
~ 
±99+ 
JO.% 
-1992-
4()% 
()()1 or thereafter 
~ 
Sec. D-3. 36 MRSA §5200-A, sub-§2, ,r,rcc, DD and EE are enacted to read: 
CC. An amount equal to 50% of the apportionable subpart F income, as defmed in 
the Code, Section 952, net of related expenses and other related deductions deducted 
in computing federal taxable income, that the taxpayer included in federal gross 
income during the taxable year. Any amount subtracted from federal taxable income 
under this paragraph must be excluded from the sales factor of any apportionment 
formula employed to attribute income to this State. 
DD. An amount equal to 80% of the apportionable deferred foreign income that the 
taxpayer included in federal gross income during the taxable year in accordance with 
the Code, Section 965(a) as adjusted by Section 965(b). Any amount subtracted from 
federal taxable income under this paragraph must be excluded from the sales factor of 
any apportionment formula employed to attribute income to this State. 
EE. An amount equal to 50% of the apportionable global intangible low-taxed 
income that the taxpayer included in federal gross income during the taxable year in 
accordance with the Code, Section 95 lA, net of related expenses and other related 
deductions deducted in computing federal taxable income. The amount included in 
the sales factor of any apportionment formula employed to attribute apportionable 
income to this State the taxpayer included in federal gross income during the taxable 
year in accordance with the Code, Section 95 lA is 50% of the amount included in 
federal gross income. 
Sec. D-4. Application. This Part applies to tax years beginning on or after January 
1, 2017, except that those sections of this Part that enact the Maine Revised Statutes, Title 
36, section 5200-A, subsection 1, paragraph FF and subsection 2, paragraph EE apply to 
tax years beginning on or after January 1, 2018. 
PARTE 
Sec. E-1. 36 MRSA §5200, sub-§1, as amended by PL 2005, c. 618, §6 and 
affected by §22, is further amended to read: 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
1. Imposition and rate of tax prior to 2018. A For tax years beginning before 
January 1, 2018, a tax is imposed for each taxable year at the following rates on each 
taxable corporation and on each group of corporations that derives income from a unitary 
business carried on by 2 or more members of an affiliated group: 
If the income is: 
Not over $25,000 
$25,000 but not over $75,000 
$75,000 but not over $250,000 
$250,000 or more 
The tax is: 
3.5% of the income 
$875 plus 7.93% of the excess over 
$25,000 
$4,840 plus 8.33% of the excess over 
$75,000 
$19,418 plus 8.93% of the excess over 
$250,000 
In the case of an affiliated group of corporations engaged in a unitary business with 
activity taxable only by Maine, the rates provided in this subsection are applied only to 
the first $250,000 of the Maine net income of the entire group and must be apportioned 
equally among the taxable corporations unless those taxable corporations jointly elect a 
different apportionment. The balance of the Maine net income of the entire group is taxed 
at 8.93%. 
In the case of an affiliated group of corporations engaged in a unitary business with 
activity taxable both within and without this State, the rates provided in this subsection 
are applied only to the first $250,000 of the net income of the entire group and must be 
apportioned equally among the taxable corporations unless those taxable corporations 
jointly elect a different apportionment. The balance of the net income of the entire group 
is taxed at 8.93%. 
Sec. E-2. 36 MRSA §5200, sub-§1-A is enacted to read: 
1-A. Imposition and rate of tax beginning 2018. For tax years beginning on or 
after January 1, 2018, a tax is imposed for each taxable year at the following rates on 
each taxable corporation and on each group of corporations that derives income from a 
unitary business carried on by 2 or more members of an affiliated group: 
If the income is: 
Not over $350,000 
$350,000 but not over $1,050,000 
$1,050,000 but not over $3,500,000 
$3,500,000 or more 
The tax is: 
3.5% of the income 
$12,250 plus 7.93% of the excess over 
$350,000 
$67,760 plus 8.33% of the excess over 
$1,050,000 
$271,845 plus 8.93% of the excess over 
$3,500,000 
In the case of an affiliated group of corporations engaged in a unitary business with 
activity taxable only by Maine, the rates provided in this subsection are applied only to 
the first $3,500,000 of the Maine net income of the entire group and must be apportioned 
equally among the taxable corporations unless those taxable corporations jointly elect a 
different apportionment. The balance of the Maine net income of the entire group is taxed 
at 8.93%. 
SENATE AMENDMENT 
SENATEAMENDMENT"I\ "to COMMITTEEAMENDMENT"B"to S.P. 612,L.D. 1655 
In the case of an affiliated group of corporations engaged in a unitary business with 
activity taxable both within and without this State, the rates provided in this subsection 
are applied only to the first $3,500,000 of the net income of the entire group and must be 
apportioned equally among the taxable corporations unless those taxable corporations 
jointly elect a different apportionment. The balance of the net income of the entire group 
is taxed at 8.93%. 
Sec. E-3. 36 MRSA §5200, sub-§§2 to 4, as enacted by PL 2005, c. 457, Pt. 
FFF, § 1 and affected by §2, are amended to read: 
2. Business activity only within Maine. For purposes of subseetion subsections 1 
and 1-A, with respect to a taxable corporation or group of corporations that derive income 
from a unitary business carried on by 2 or more members of an affiliated group with 
income from business activity that is taxable only by Maine, "income" means Maine net 
income. 
3. 
Business activity within and outside Maine. 
For purposes of subseetion 
subsections 1 and 1-A, with respect to a taxable corporation with income from business 
activity that is taxable both within and without this State, "income" means the 
corporation's net income. The tax amount computed under subseetion subsections 1 and 
1-A must then be apportioned under the provisions of chapter 821 to determine the 
amount of tax imposed on that corporation. 
4. Business activity within and outside Maine; unitary business. For purposes of 
subseetion subsections 1 and 1-A, with respect to taxable corporations that derive income 
from a unitary business carried on by 2 or more members of an affiliated group with 
business activity that is taxable both within and without this State, "income" means the 
net income of the entire group. The tax amount computed under subseetion subsections 1 
and 1-A must then be apportioned under the provisions of chapter 821 for the entire 
group to determine the amount of tax imposed on the taxable corporations. 
PARTF 
Sec. F-1. 5 MRSA §12004-1, sub-§18-B, as enacted by PL 1997, c. 732, §1, is 
amended to read: 
18-B. 
Education: 
Financial Aid 
Advisory Committee Not Authorized 
on College 
Education Savings 
20-AMRSA §11484 
Sec. F-2. 20-A MRSA §11471, sub-§1, as enacted by PL 1997, c. 732, §4, is 
5 
amended to read: 
1. Advisory committee. "Advisory committee" means the Advisory Committee on 
Colle~e Education Savings established in this chapter. 
Sec. F-3. 20-A MRSA §11471, sub-§7, as enacted by PL 1997, c. 732, §4, is 
amended to read: 
SENATE AMENDMENT 
SENATE AMENDMENT "A "to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
7. Higher education expenses. "Higher education expenses" means the certified 
expenses for attendance at an institution of higher education as those expenses are 
defined by rule of the authority consistent with applicable provisions of the federal 
futemal Revenue Code of 1986 and its regulations addressing qualified state tuition 
programs. 
Beginning January 1, 2018, "higher education expenses" has the same 
meaning as "qualified higher education expenses" as defined in Section 529 of the federal 
futemal Revenue Code of 1986 and amendments to that Code and its regulations 
addressing qualified state tuition programs. 
Sec. F-4. 20-A MRSA §11472, as enacted by PL 1997, c. 732, §4, is amended to 
read: 
§11472. Maine Education Savings Program 
The Maine College Education Savings Program, referred to in this chapter as the 
"program," is established to encourage the investment of funds to be used for higher 
education expenses at institutions of higher education and, beginning January 1, 2018, 
and as long as permitted by provisions of Section 529 of the federal Internal Revenue 
Code of 1986, expenses for tuition in connection with enrollment or attendance at an 
elementary or secondary public, private or religious school. 
The authority shall 
administer the program and act as administrator of the program fund. 
Sec. F-5. 20-A MRSA §11477, sub-§2, 1C, as enacted by PL 1997, c. 732, §4, 
is amended to read: 
C. Receipt by the beneficiary of a scholarship or educational funding, identified by 
rule of the authority, resulting in an excess of funds in the account not needed to pay 
higher education expenses at an institution of higher education. 
Sec. F-6. 20-A MRSA §11479, as enacted by PL 1997, c. 732, §4, is amended to 
read: 
§11479. Tax exemption 
The assets of the program fund, all program earnings and any income from operations 
are exempt from all taxation by the State or any of its political subdivisions. A deposit to 
any account, transfer of that account to a successor participant, designation of a successor 
beneficiary of that account, credit of program earnings to that account or qualified 
distribution from that account used for the purpose of paying higher education expenses 
of the designated beneficiary of that account pursuant to this chapter, as long as that 
distribution does not exceed the limits established in Section 529 of the federal futemal 
Revenue Code of 1986 or rollover distributions permitted under Section 529 of the 
federal futemal Revenue Code of 1986, does not subject that participant, the estate of that 
participant or any beneficiary to any state income or estate tax liability .. fu the event of 
cancellation or termination of a participation agreement and distribution of funds to a 
participant, the increase in value over the amount deposited in the program fund by that 
participant may be taxable to that participant in the year distributed. 
Sec. F-7. 20-A MRSA §11484, as amended by PL 2017, c. 200, §§1 and 2, is 
further amended to read: 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
§11484. Advisory Committee on Education Savings 
The Advisory Committee on College Education Savings, referred to in this chapter as 
the "advisory committee," is created to provide advice to the authority on the operation of 
the program and investment of the program fund. 
1. Membership. The advisory committee consists of 8 members as follows: 
B-2. One member appointed by the Governor from the public; 
C. Four members appointed by the Governor with experience in and knowledge of 
institutional investment of funds; and 
F. Three members appointed by the chair of the board who are members of the 
board. 
The chair of the advisory committee must be appointed annually by the chair of the 
board. 
2. Terms. Members appointed by the Governor must be appointed for terms of 4 
years. Members appointed by the chair of the board are appointed for terms of one year. 
Members may be removed for cause. 
3. 
Compensation. 
Members of the advisory committee are compensated in 
accordance with Title 5, chapter 379. 
Sec. F-8. 36 MRSA §5122, sub-§2, 1J, as amended by PL 2003, c. 390, §33, is 
further amended to read: 
J. To the extent included in federal adjusted gross income, any amount constituting a 
qualified distribution from an account established pursuant to Title 20-A, chapter 
417-E a-ad :used for paying higher ed:ueation eKpenses of the designated benefieiary of 
that aeeo:um; 
Sec. F-9. Maine Revised Statutes amended; revision clause. Wherever in 
the Maine Revised Statutes the words "Maine College Savings Program" appear or 
reference is made to that program or those words, those words are amended to read or 
mean, as appropriate, "Maine Education Savings Program" and the Revisor of Statutes 
shall implement this revision when updating, publishing or republishing the statutes. 
PARTG 
Sec. G-1. 36 MRSA §4102, sub-§5, as amended by PL 2015, c. 267, Pt. I, §1, is 
further amended to read: 
5. Maine exclusion amount. For estates of decedents dying on or after January 1, 
2013, but before January 1, 2016, "Maine exclusion amount" means $2,000,000. For 
estates of decedents dying on or after January 1, 2016, but before January 1. 2018, 
"Maine exclusion amount" means the basic exclusion amount determined for the calendar 
year in accordance with the Code, Section 2010(c)(3). For estates of decedents dying on 
or after January 1. 2018. "Maine exclusion amount" means $5,600.000. 
Sec. G-2. 36 MRSA §4119 is enacted to read: 
SENATE AMENDMENT 
SENATE AMENDMENT "A "to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
§4119. Annual adjustments for inflation 
Beginning in 2018 and each year thereafter, on or about September 15th, for the 
estates of decedents who die during the succeeding calendar year, the assessor shall 
multiply the cost-of-living adjustment by the dollar amount contained in section 4102, 
subsection 5 applicable to estates of decedents dying on or after January 1, 2018. For the 
purposes of this section, the "cost-of-living adjustment" is the Chained Consumer Price 
Index for the 12-month period ending June 30th of the preceding calendar year divided by 
the Chained Consumer Price Index for the 12-month period ending June 30, 2017. 
PARTH 
Sec. H-1. 36 MRSA §2536 is enacted to read: 
§2536. Employer credit for family and medical leave 
For tax years beginning on or after January 1, 2018, a person is allowed a credit 
against the tax otherwise due under this chapter in an amount equal to the federal 
employer credit for paid family and medical leave allowed to that person under the Code, 
Section 458 as a result of wages paid to employees based in the State during the taxable 
year. 
The credit allowed under this section may not reduce the tax otherwise due under this 
chapter to less than zero. The credit may not be carried forward or carried back to any 
other tax year. 
Sec. H-2. 36 MRSA §5219-UU is enacted to read: 
§5219-UU. Employer credit for family and medical leave 
For tax years beginning on or after January 1, 2018, a person is allowed a credit 
against the tax otherwise due under this Part in an amount equal to the federal employer 
credit for paid family and medical leave allowed to that person under the Code, Section 
as a result of wages paid to employees based in the State during the taxable year. 
The credit allowed under this section may not reduce the tax otherwise due under this 
Part to less than zero. The credit may not be carried forward or carried back to any other 
tax year. 
PART I 
Sec. 1-1. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides one-time funding for computer programming changes. 
SENATE AMENDMENT 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
GENERAL FUND 
2017-18 
All Other 
$0 
GENERAL FUND TOTAL 
$0 
SUMMARY 
2018-19 
$229,000 
$229,000 
This amendment replaces Committee Amendment "B" except for the substitute title 
and does the following. 
Part A updates references to the United States Internal Revenue Code of 1986 
contained in the Maine Revised Statutes, Title 36 to refer to the United States Internal 
Revenue Code of 1986 as amended through March 23, 2018 for tax years beginning on or 
after January 1, 2017 and for any prior tax years as specifically provided by the United 
States Internal Revenue Code of 1986, as amended. Part A primarily affects the State's 
income and estate tax laws. 
Part B makes the following changes to the individual income tax. 
1. For tax years beginning on or after January 1, 2018, it changes the Maine standard 
deduction to conform to the federal standard deduction and increases the amount at which 
the standard deduction begins to phase out. 
2. 
It increases Maine itemized deductions by the amount of real and personal 
property taxes not claimed for federal income tax pmposes as a result of the $10,000 
limitation, which is $5,000 in the case of a married individual filing a separate return, 
applicable to the aggregate of state, local and foreign income taxes, or state and local 
general sales taxes in lieu of state and local income taxes, and property taxes. Both the 
federal limitation and the increase in Maine itemized deductions apply to tax years 
beginning on or after January 1, 2018. 
3. For tax years beginning on or after January 1, 2018, it increases the amount at 
which the Maine itemized deduction begins to phase out. 
4. For tax years beginning on or after January 1, 2018, the amendment establishes a 
Maine personal exemption deduction amount equal to $4,150 that may be claimed by a 
taxpayer and the taxpayer's spouse if the taxpayer is married filing a joint return. The 
personal exemption deduction amount is subject to phase-out for higher-income 
taxpayers. The personal exemption amount and phase-out thresholds are subject to an 
annual inflation adjustment. The personal exemption deduction may not be claimed for a 
taxpayer or a taxpayer's spouse who is claimed as a dependent on another taxpayer's 
return. 
5. It amends the sales tax fairness credit and the property tax fairness credit by 
replacing references to the number of exemptions claimed on the taxpayer's return with 
references to dependents claimed under the federal child tax credit and removing the 
requirement to add the federal domestic production activities deduction to income for 
pmposes of the programs in response to federal tax changes made in the federal Tax Cuts 
and Jobs Act of 2017. It also provides for the adjustment for inflation of the sales tax 
fairness credit and the property tax fairness credit beginning in 2019. Finally, it increases 
the property tax fairness credit to 100% of the benefit base above 6% of the resident 
SENATE AMENDMENT 
SENATE AMENDMENT" A 
"to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
individual's income and increases the credit cap to $750 for individuals and $1,200 for 
individuals over 65 years of age. 
6. It establishes a new tax credit equal to $300 for each qualifying child and 
dependent of the taxpayer for whom the federal child tax credit pursuant to the Internal 
Revenue Code, Section 24 is claimed for the same taxable year. The new credit is 
available for tax years beginning on or after January 1, 2018. 
Part C makes the following changes to the individual and corporate income taxes. 
1. 
It eliminates Maine's domestic production activities deduction income 
modification. The related federal deduction is repealed for tax years beginning on or after 
January 1, 2018. 
2. It enacts modifications that reverse, for Maine tax purposes, the effects of the new 
federal limitation on the net operating loss deduction. 
3. It requires that any amount claimed as a special deduction provided by the Internal 
Revenue Code, Section 199A must be added back to federal taxable income for purposes 
of calculating income tax liability of estates and trusts under the Maine Revised Statutes, 
Title 36, chapters 809 and 811. Individual taxpayers are not allowed the special deduction 
provided by the Internal Revenue Code, Section 199A in calculating Maine taxable 
income; this section provides similar treatment to estates and trusts. 
4. It eliminates the application of the alternative minimum tax to corporate income 
for tax years beginning after December 31, 2017. 
Part D makes the following corporate income tax changes regarding the federal 
mandatory repatriation of deferred foreign income under the federal Tax Cuts and Jobs 
Act of 2017, the taxation of dividends, subpart F income as defined in Section 952 of the 
Internal Revenue Code, or "Code," and global intangible low-taxed income. 
1. It creates an addition modification in the amount of the participation exemption 
claimed in accordance with the Code, Section 965(c). This provision applies to tax years 
beginning on or after January 1, 2017. 
2. It creates an addition modification in the amount of the global intangible low-
taxed income deduction claimed in accordance with the Code, Section 250(a)(l)(B). This 
provision applies to tax years beginning on or after January 1, 2018. 
3. It makes technical clarifications, removing obsolete language from the existing 
dividends-received subtraction, clarifying netting and sales factor treatment consistent 
with administrative practice and excluding from dividend income subpart F income, 
global intangible low-taxed income included in federal taxable income in accordance 
with the Code, Section 951A and deferred foreign income included in federal taxable 
income in accordance with the Code, Section 965. This provision applies to tax years 
beginning on or after January 1, 2017. 
4. 
It creates a subtraction modification for an amount equal to 50% of the 
apportionable subpart F income included in federal gross income by the taxpayer. This 
section codifies the longstanding administrative practice of applying the existing 
dividends-received subtraction to subpart F income, as well as dividends. This provision 
applies to tax years beginning on or after January 1, 2017. 
SENATE AMENDMENT 
SENATE AMENDMENT"'{\" to COMMITTEE AMENDMENT "B" to S.P. 612, L.D. 1655 
5. 
It creates a subtraction modification for an amount equal to 80% of the 
apportionable deferred foreign income included in federal gross income, pursuant to the 
Code, Section 965(a) and (b), by the taxpayer. This provision applies to tax years 
beginning on or after January 1, 2017. 
6. 
It creates a subtraction modification for an amount equal to 50% of the 
apportionable global low-taxed intangible income included in federal gross income, 
pursuant to the Code, Section 951A, by the taxpayer. This provision applies to tax years 
beginning on or after January 1, 2018. 
Part E expands the corporate income tax brackets beginning in 2018. The current rate 
structure for taxable corporations consists of 3.5% on income not over $25,000, 7.93% on 
income not over $75,000, 8.33% on income not over $250,000 and 8.93% on income of 
$250,000 or more. The rate structure for tax years beginning after December 31, 2017 
consists of 3.5% on income not over $350,000, 7.93% on income not over $1,050,000, 
8.33% on income not over $3,500,000 and 8.93% on income of $3,500,000 or more. 
Part F amends the Maine College Savings Program to change the name to the Maine 
Education Savings Program and, as a result of recent federal changes to the Internal 
Revenue Code, Section 529, qualified tuition programs, extends the ability to use the 
program for enrollment or attendance expenses at an elementary or secondary public, 
private or religious school and to receive favorable federal tax treatment on the earnings 
portions of such disbursements. 
Part F provides for changes to the Maine Revised 
Statutes to reflect the change to the name of the program. Part F also conforms the 
program's state tax treatment of such disbursements to federal law. 
Part G retains the Maine exclusion amount under the estate tax at the amount in effect 
for deaths prior to January 1, 2018, subject to an annual inflation adjustment, and does 
not conform to the increases in the federal basic exclusion amount. 
Part H provides a credit under the income tax and the insurance premium tax equal to 
the federal credit for employer-paid family and medical leave. The federal credit expires 
December 31, 2019. 
Part I provides funding for computer programming changes needed as a result of the 
changes made in this amendment. 
FISCAL NOTE REQUIRED 
c 
(Se~ 
SPONSORED BY: ~C,\,b,L i~-' 
(Senator DOW) 
COUNTY: Lincoln 
SENATE AMENDMENT 
Approved: 06/18/18 feac 
LD 1655 
LR2770(07) 
An Act To Update References to the United States Internal Revenue Code of 1986 Contained in the 
Maine Revised Statutes 
Fiscal Note for Senate Amendment'~' to Committee Amendment "B" 
Sponsor: Sen. Dow of Lincoln 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
($4,638,340) 
$0 
$4,638,340 
$94,660 
FY 2018-19 
($58,042, 180) 
$49,000 
$58,091,180 
$1,099,820 
Projections 
FY 2019-20 
($36, 135,377) 
$0 
$36,135,377 
$1,607,125 
Projections 
FY2020-21 
($41,892,183) 
$0 
$41,892,183 
$1,902,220 
This amendment makes changes to Committee Amendment "B". As reflected above, the incremental impact of this 
amendment is to decrease the General Fund revenue loss in Committee Amendment "B" by $4,638,340 in fiscal year 
2017-18 and by $58,091,180 in fiscal year 2018-19, and to decrease the Local Government Fund revenue loss by 
$94,660 in fiscal year 2017-18 and by $1,099,820 in fiscal year 2018-19. The amendment also increases the one-time 
General Fund appropriation to the Department of Administrative and Financial Services for computer programming 
costs by $49,000 to $229,000. 
The combined impact on revenue from the bill (Committee "B") as amended by this amendment is summarized in the 
table below. General Fund revenue would be reduced by $4,590,320 in 2017-18 and by $22,181,320 in 2018-19, for a 
combined General Fund revenue loss of $26,771,640 over the 2018-2019 biennium. Local Government Fund revenue 
would be reduced by $93,680 in 2017-18 and by $452,680 in 2018-19 for a combined Local Government Fund 
revenue loss of $546,360 over the 2018-2019 biennium. 
Combined Revenue Impact (Committee "B" as Amended) 
FY 2017-18 
General Fund 
($4,590,320) 
Other Special Revenue Funds 
($93,680) 
FY 2018-19 
FY 2019-20 
($22,181,320) 
($19,875,900) 
($452,680) 
($1,046,100) 
FY 2020-21 
($26,999,000) 
($1,421,000)