An Act To Prevent Tax Haven Abuse
Maine Legislature, Session 130, LD 0428
Committee Amendment CA_A_H943 (House)

COMMITTEE AMENDMENT "/f,' to H.P. 308, L.D. 428, "An Act To Prevent Tax 
Haven Abuse" 
Amend the bill by striking out the title and substituting the following: 
'Resolve, Directing Maine Revenue Services To Review and Report Regarding 
Worldwide Combined Reporting of Certain Corporations for Income Tax Purposes' 
Amend the bill by striking out everything after the title and inserting the following: 
'Sec. 1. Review of worldwide combined reporting by certain corporations 
for income tax purposes. Resolved: That the Department of Administrative and 
Financial Services, Maine Revenue Services, referred to in this resolve as "Maine Revenue 
Services," shall review in accordance with section 2 the impact on the State's income tax 
and the State's economy of adopting a system for apportionment of income for purposes of 
calculating income tax for corporations that are part of an affiliated group with members 
outside of the United States. 
Sec. 2. Scope of review; report. Resolved: That Maine Revenue Services shall: 
A. 
Review the State's corporate income tax law and identify statutory and 
administrative changes that would be necessary to adopt a corporate income tax system 
that requires worldwide combined reporting for income tax purposes and that allows a 
corporation to elect to compute income on a water's edge combined report; 
B. Consider: 
(1) The need to define income of a combined group under worldwide combined 
reporting; 
(2) The need to adjust the State's income tax nexus laws; 
(3) The need to adjust the State's method of apportioning corporate income for 
income tax purposes; 
( 4) The implications of pe1mitting corporations to elect to file a return based on 
water's edge combined reporting and conditions under which a corporation may 
be allowed to withdraw from that election; and 
COMMITTEE AMENDMENT 
ROS 
COMMITTEE AMENDMENT ,J;, to H.P. 308, L.D. 428 
(5) Any other statutory changes necessary to implement changes to the system 
described in paragraph A; and 
C. Report to the joint standing committee of the Legislature having jurisdiction over 
taxation matters by Febmaty 1, 2023 the projected impact and policy considerations of 
adopting a corporate income tax system that requires worldwide combined reporting 
for income tax purposes and that allows a corporation to elect to compute income by a 
water's edge combined report. Maine Revenue Services shall include in its report an 
analysis of how such a system would affect conformity of the State's income tax system 
with the federal income tax system, including changes to the federal system currently 
being considered by the United States Congress. 
Sec. 3. Legislation. Resolved: That the joint standing committee of the Legislature 
having jurisdiction over taxation matters may submit legislation related to the report 
submitted pursuant to this resolve to the 131st Legislature in 2023.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment replaces the bill with a resolve requmng the Department of 
Administrative and Financial Services, Maine Revenue Services to review the impact on 
the State's income tax and economy of adopting a system for apportionment of income for 
purposes of calculating income tax for corporations that are part of an affiliated group with 
members outside of the United States by adopting worldwide combined reporting with an 
election for water's edge combined reporting and to report the results of its review to the 
joint standing committee of the Legislature having jurisdiction over taxation matters by 
February 1, 2023. It also authorizes the committee to report out legislation related to the 
report. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03/30/22 Mae! 
LD428 
LR 1634(02) 
An Act To Prevent Tax Haven Abuse 
Fiscal Note for Bill as Amended by Committee Amendment {/{lf--C/l/ 3} 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Additional costs to the Department of Administrative and Financial Services related to performing the review and 
reporting the results can be absorbed within existing budgeted resources. 
LR 1634(02) - Fiscal Note - Page 1 of 1