Maine Revised Statutes Title 36 Sec. 5219-W – Pine Tree Development Zone tax credit
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1. Credit allowed. Except as provided by subsection 2, a taxpayer that is a qualified Pine Tree Development Zone business as defined in Title 30?A, section 5250?I, subsection 17 is allowed a credit in the amount of:
A. One hundred percent of the tax that would otherwise be due under this Part for each of the first 5 tax years beginning with the tax year in which the taxpayer commences its qualified business activity, as defined in Title 30?A, section 5250?I, subsection 16; and [PL 2013, c. 595, Pt. K, §1 (AMD); PL 2013, c. 595, Pt. K, §2 (AFF).]
B. For a business located in a tier 1 location, as defined in Title 30?A, section 5250?I, subsection 21?A, 50% of the tax that would otherwise be due under this Part for each of the 5 tax years following the time period in paragraph A. [PL 2013, c. 595, Pt. K, §1 (AMD); PL 2013, c. 595, Pt. K, §2 (AFF).]
[PL 2013, c. 595, Pt. K, §1 (AMD); PL 2013, c. 595, Pt. K, §2 (AFF).]
Terms Used In Maine Revised Statutes Title 36 Sec. 5219-W
- Code: means the United States Internal Revenue Code of 1986 and amendments to that Code as of December 31, 2022. See Maine Revised Statutes Title 36 Sec. 111
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means any business entity subject to income taxation as a corporation under the laws of the United States, except the following:
A. See Maine Revised Statutes Title 36 Sec. 5102Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses. Personal property: All property that is not real property. Tax: means the total amount required to be paid, withheld and paid over or collected and paid over with respect to estimated or actual tax liability under this Title, any credit or reimbursement allowed or paid pursuant to this Title that is recoverable by the assessor and any amount assessed by the assessor pursuant to this Title, including any interest or penalties provided by law. See Maine Revised Statutes Title 36 Sec. 111 Taxpayer: means any person required to file a return under this Title or to pay, withhold and pay over or collect and pay over any tax imposed by this Title. See Maine Revised Statutes Title 36 Sec. 111 Unitary business: means a business activity which is characterized by unity of ownership, functional integration, centralization of management and economies of scale. See Maine Revised Statutes Title 36 Sec. 5102 Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
2. Apportioned credit in certain circumstances. In the case of a qualified Pine Tree Development Zone business as defined in Title 30?A, section 5250?I, subsection 17 that engages in both qualified and nonqualified business activities in this State, the credit provided for in this section is limited to that portion that is attributable to the qualified business activity. The limitation is calculated by an apportionment. The apportionment is determined by a fraction, the numerator of which is the property value plus the payroll for the taxable year attributed to the qualified business activity of the business and the denominator of which is the statewide property value plus payroll for the taxable year of the business.
If the qualified business is a taxable corporation that has affiliated groups, as defined in section 5102, subsection 1?B, engaged in a unitary business, as defined in section 5102, subsection 10?A, the property and payroll values in the State of the unitary affiliated groups must be included in the apportionment fraction. The resulting fraction must be multiplied by the total tax liability otherwise due under this Part of the qualified business and those affiliated groups.
If the apportionment provisions of this subsection do not fairly reflect the amount of the credit associated with the taxpayer’s qualified business activity, the taxpayer may petition for, or the State Tax Assessor may require, in respect to all or any part of the taxpayer’s business activity, the employment of another reasonable method to effectuate an equitable apportionment of the credit associated with the taxpayer’s qualified business activity.
[PL 2005, c. 351, §14 (RPR); PL 2005, c. 351, §26 (AFF).]
3. Members of pass-through entities. A member of a pass-through entity that is a qualified Pine Tree Development Zone business, as defined in Title 30?A, section 5250?I, subsection 17, is allowed a credit under this section based on the tax due under this Part related to items of income, gain, deduction, loss or other items required to be reported by the pass-through entity to the member. For purposes of this subsection, “pass-through entity” means a corporation that for the applicable tax year is treated as an S corporation under the Code and a partnership, trust, limited liability company or similar entity that for the applicable tax year is not taxed as a C corporation for federal tax purposes; “member” means an individual or other owner of a pass-through entity.
[PL 2005, c. 351, §15 (RPR); PL 2005, c. 351, §26 (AFF).]
4. Limitation. The credit provided by this section may not be claimed for tax years beginning on or after January 1, 2035.
[PL 2023, c. 412, Pt. J, §11 (AMD).]
5. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. “Property” means the average value of the taxpayer’s real and tangible personal property that is owned or rented and used during the tax period. Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at 8 times the net annual rental rate. The net annual rental rate is the annual rental rate paid by the taxpayer. [PL 2005, c. 351, §16 (NEW).]
B. “Payroll” means the total amount paid in this State during the tax period by the taxpayer for compensation, including wages, pretax employee contributions made to a benefit package and employer contributions made to an employee benefit package. [PL 2005, c. 351, §16 (NEW).]
[PL 2005, c. 351, §16 (NEW).]
SECTION HISTORY
PL 2003, c. 451, §NNN5 (NEW). PL 2003, c. 451, §NNN8 (AFF). PL 2003, c. 688, §D5 (AMD). PL 2005, c. 351, §§13-16 (AMD). PL 2005, c. 351, §26 (AFF). PL 2009, c. 627, §§10, 11 (AMD). PL 2009, c. 627, §12 (AFF). PL 2013, c. 502, Pt. K, §1 (AMD). PL 2013, c. 502, Pt. K, §2 (AFF). PL 2013, c. 595, Pt. K, §1 (AMD). PL 2013, c. 595, Pt. K, §2 (AFF). PL 2017, c. 440, §12 (AMD). PL 2021, c. 398, Pt. IIII, §6 (AMD). PL 2023, c. 412, Pt. J, §11 (AMD).