An Act To Amend Maine's Corporate Income Tax by Increasing the Top Rate from 8.93 Percent to 12.4 Percent
Maine Legislature, Session 130, LD 0501
Committee: Taxation
Sponsors: BROOKS, COLLINGS, CRAVEN, GRAMLICH, TERRY, CHIPMAN
Amends: 36 MRSA §5200

Legislative Document
No. 501
H.P. 364
House of Representatives, February 19, 2021
An Act To Amend Maine's Corporate Income Tax by Increasing the 
Top Rate from 8.93 Percent to 12.4 Percent
Received by the Clerk of the House on February 17, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative BROOKS of Lewiston.
Cosponsored by Representatives: COLLINGS of Portland, CRAVEN of Lewiston, 
GRAMLICH of Old Orchard Beach, TERRY of Gorham, Senator: CHIPMAN of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5200, sub-§1-A, as enacted by PL 2017, c. 474, Pt. E, §2, is 
amended to read:
1-A.  Imposition and rate of tax beginning; tax years from 2018 to 2021.  For tax 
years beginning on or after January 1, 2018 but not later than December 31, 2021, 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:
The tax is: 
Not over $350,000
3.5% of the income
$350,000 but not over $1,050,000
$12,250 plus 7.93% of the excess over 
$350,000
$1,050,000 but not over $3,500,000
$67,760 plus 8.33% of the excess over 
$1,050,000
$3,500,000 or more
$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%.
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. 2.  36 MRSA §5200, sub-§1-B is enacted to read:
1-B.  Imposition and rate of tax beginning 2022.  For tax years beginning on or after 
January 1, 2022, 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:
The tax is: 
Not over $350,000
3.5% of the income
$350,000 but not over $1,050,000
$12,250 plus 7.93% of the excess over 
$350,000
$1,050,000 but not over $3,500,000
$67,760 plus 8.33% of the excess over 
$1,050,000
$3,500,000 or more
$271,845 plus 12.4% 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 12.4%.
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 
12.4%.
SUMMARY
This bill increases the income tax rate on corporations in the top income tax bracket 
from 8.93% to 12.4% for tax years beginning on or after January 1, 2022.