Enacted on September 12, L.D 1655 makes significant changes to Maine’s corporate income tax law. For tax years beginning on or after January 1, 2018, Maine modifies its corporate income tax rate brackets and repeals the corporate alternative minimum tax.
Applicable for tax years beginning on or after January 1, 2017, Maine updates its Internal Revenue Code conformity to the Code as amended on March 23, 2018, which includes the 2017 tax reform legislation (the Act). L.D. 1655 modifies or decouples from the Act in several ways, including:
Following months of uncertainty regarding whether Maine would update its IRC code conformity provision to include the changes made by the Act, L.D. 1655 not only resolves this issue but provides clarity in how Maine will modify the federal changes for corporate income tax purposes.