An Act To Reauthorize a 3 Percent Tax on Income over $200,000 To Lift All Maine Workers out of Poverty
Maine Legislature, Session 130, LD 0498
Committee: Taxation
Sponsors: SYLVESTER
Amends: 36 MRSA §5111, 36 MRSA §5219-S

Legislative Document
No. 498
H.P. 361
House of Representatives, February 19, 2021
An Act To Reauthorize a 3 Percent Tax on Income over $200,000 To 
Lift All Maine Workers out of Poverty
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 SYLVESTER of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5111, sub-§7 is enacted to read:
7.  Income tax surcharge.  For tax years beginning on or after January 1, 2022, in 
addition to any other tax imposed by this chapter, an income tax surcharge at the rate of 
3% is imposed on that portion of the taxpayer's Maine taxable income in excess of 
$200,000.
Sec. 2.  36 MRSA §5219-S, sub-§1, as amended by PL 2019, c. 527, Pt. B, §2, is 
further amended to read:
1.  Resident taxpayer.  A resident individual who is an eligible individual is allowed 
a credit against the tax otherwise due under this Part in the amount of 25% 100% of the 
federal earned income credit for the same taxable year for a resident eligible individual 
who does not have a qualifying child and 12% of the federal earned income credit for the 
same taxable year for all other resident eligible individuals.
Sec. 3.  36 MRSA §5219-S, sub-§2, as amended by PL 2019, c. 527, Pt. B, §2, is 
further amended to read:
2.  Nonresident taxpayer.  A nonresident individual who is an eligible individual is 
allowed a credit against the tax otherwise due under this Part in the amount of  25% 100% 
of the federal earned income credit for the same taxable year for a nonresident eligible 
individual who does not have a qualifying child and 12% of the federal earned income 
credit for the same taxable year for all other nonresident eligible individuals, 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.
Sec. 4.  36 MRSA §5219-S, sub-§3, as amended by PL 2019, c. 527, Pt. B, §2, is 
further amended to read:
3.  Part-year resident taxpayer.  An eligible 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 in the amount of  25% 100% of the federal earned income 
credit for the same taxable year for an eligible part-year individual who does not have a 
qualifying child and 12% of the federal earned income credit for the same taxable year for 
all other eligible part-year individuals, multiplied by a ratio, 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.
Sec. 5.  Application. This Act applies to tax years beginning on or after January 1, 
2022.
SUMMARY
This bill imposes an income tax surcharge on taxable income exceeding $200,000 and 
increases the Maine earned income tax credit to equal the federal earned income tax credit.