Bill > LD1939

This bill establishes a comprehensive worldwide combined reporting requirement for large corporations operating in Maine, specifically targeting corporations with over $1 billion in gross revenues. The legislation requires these corporations to file a combined tax return that includes their complete financial information from all global operations, ensuring that income from offshore subsidiaries and international business activities is transparently reported and appropriately taxed. Key provisions include mandating that all members of a unitary business (interconnected businesses with shared economic interests) file a joint return, with members being jointly liable for the group's tax obligation. The bill defines numerous technical terms, such as "combined group" and "unitary business," and outlines complex rules for calculating taxable income, including how to handle different types of income, capital gains, and net operating losses. The reporting requirement applies to corporations meeting specific criteria, such as those subject to federal alternative minimum tax or falling under international tax framework guidelines. Importantly, the bill aims to close tax loopholes that allow corporations to shift profits to low-tax jurisdictions, thereby ensuring that corporations pay their fair share of taxes in Maine. The new reporting requirements will take effect for tax years beginning on or after January 1, 2027, giving businesses time to prepare for the new reporting standards.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1939&snum=132