An Act To Provide Equitable Tax Treatment to State-licensed Marijuana Businesses
Maine Legislature, Session 129, LD 1322
Committee: Taxation
Sponsors: JORGENSEN, CHIPMAN, BICKFORD, HUBBELL, MAREAN, PIERCE
Amends: 36 MRSA §5122, 36 MRSA §5200-A

Legislative Document
No. 1322
H.P. 957
House of Representatives, March 19, 2019
An Act To Provide Equitable Tax Treatment to State-licensed 
Marijuana Businesses
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative JORGENSEN of Portland.
Cosponsored by Senator CHIPMAN of Cumberland and
Representatives: BICKFORD of Auburn, HUBBELL of Bar Harbor, MAREAN of Hollis, 
PIERCE of Falmouth.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5122, sub-§1, ¶LL, as enacted by PL 2017, c. 474, Pt. C, §2, 
is amended 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 QQ.
Sec. 2.  36 MRSA §5122, sub-§2, ¶PP, as enacted by PL 2017, c. 452, §31, is 
repealed and the following enacted in its place:
PP.  For taxable years beginning on or after January 1, 2018, for business expenses 
related to carrying on a trade or business as a registered caregiver, a registered 
dispensary or a manufacturing facility, as defined in Title 22, section 2422, or a 
marijuana establishment or testing facility, as defined in Title 28-B, section 102, an 
amount equal to the deduction that would otherwise be allowable under this Part to 
the extent that the deduction is disallowed under the Code, Section 280E.
Sec. 3.  36 MRSA §5122, sub-§2, ¶PP, as enacted by PL 2017, c. 474, Pt. C, §3, 
is reallocated to 36 MRSA §5122, sub-§2, ¶QQ.
Sec. 4.  36 MRSA §5200-A, sub-§1, ¶DD, as enacted by PL 2017, c. 474, Pt. C, 
§6, is amended 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 FF.
Sec. 5.  36 MRSA §5200-A, sub-§2, ¶BB, as enacted by PL 2017, c. 452, §32, is 
repealed and the following enacted in its place:
BB.  For taxable years beginning on or after January 1, 2018, for business expenses 
related to carrying on a trade or business as a registered caregiver, a registered 
dispensary or a manufacturing facility, as defined in Title 22, section 2422, or a 
marijuana establishment or testing facility, as defined in Title 28-B, section 102, an 
amount equal to the deduction that would otherwise be allowable under this Part to 
the extent that the deduction is disallowed under the Code, Section 280E.
Sec. 6.  36 MRSA §5200-A, sub-§2, ¶BB, as enacted by PL 2017, c. 474, Pt. C, 
§7, is reallocated to 36 MRSA §5200-A, sub-§2, ¶FF.
SUMMARY
This bill expands the list of marijuana businesses that are licensed by the State and 
are eligible to take deductions otherwise allowed under the state income tax laws to 
include adult use marijuana establishments and testing facilities and medical marijuana 
manufacturing facilities.  This bill also corrects 2 lettering conflicts created when 2 
separate public laws enacted new paragraphs with the same letter designations by 
reallocating the later enacted versions.