Maine legislation makes changes to several of the state’s income tax laws, including changes to the:
- headquarters expansion credit;
- new markets capital investment credit;
- state retirement pick-up contributions deduction; and
- home accessibility modifications credit.
Headquarters Expansion Credit
Regarding the credit for the expansion of major business headquarters, the legislative amendments state that:
- the credit is available only to a certified applicant who has received a certificate of completion;
- employees who are shifted to a qualified applicant’s headquarters from an affiliated business in the state are not counted for purposes of determining eligibility for the credit;
- the required job threshold calculation includes the tax year for which the credit is currently being claimed, in addition to the tax years for which the credit has been claimed;
- revocation of a certificate because of the headquarters ceasing to operate also applies to a certificate held by a transferee;
- the amount recovered by the state when a certificate is revoked is a tax due in the tax year that the certificate is revoked, and is subject to collection and enforcement provisions;
- rules for implementation of the credit and fees may be adopted; and
- certain information regarding revenue loss attributable to the credit is not confidential taxpayer information.
New Markets Capital Investment Credit
The legislation repeals the requirement that the Commissioner of Administrative and Financial Services enter into a memorandum of agreement with the taxpayer.
Maine State Retirement System Pick-Up Contributions
Pick-up contributions distributed by the Maine Public Employees Retirement System as a rollover are deductible over a three-year period. This change applies beginning with the 2018 tax year.
Previously, the deduction had to be taken in the rollover year.
Home Accessibility Credit
The credit for home accessibility modifications is now available in the tax year that the certification of eligibility is granted. These changes apply beginning with the 2018 tax year. Credits claimed for post-2017 tax years may not include qualified expenditures that were used to claim a credit in the 2017 tax year.
Currently, the credit is only available in the year during that the qualified expenditures are incurred.
L.D. 1805 (S.P. 676), Laws 2018, effective 90 days after adjournment of legislative session, applicable as noted