Instructions For Maine Franchise Tax Form 1120b-Me printable pdf download

FORM 1120B-ME

2005

MAINE

FRANCHISE TAX INSTRUCTIONS

IMPORTANT MAINE TAX LAW CHANGES

Biofuel Production Tax Credit. 36 M.R.S.A. § 5219-X. The credit is

The sales and use tax exemption for sales to contractors of Pine Tree

amended to add a requirement that in order to qualify for the credit, a

Development Zone businesses is repealed. Instead, a reimbursement

taxpayer must produce the biofuel commercially and must receive in-

program is established under which the contractors may recover the

come derived from the sale of biofuel. The change is retroactive to tax

tax paid on qualifying purchases (36 M.R.S.A. § 2016). Applies to

years beginning on or after January 1, 2004. See PL 2005, c. 330.

qualified sales on or after July 1, 2005.

Pine Tree Development Zone Credit. Various provisions in Title 30-

Only unitary affiliates need be included in the insurance premiums or

A and Title 36 were amended to make technical changes to the Pine

income tax credit apportionment calculation. Previously, all affiliates

Tree Development Zone program:

were required to be included (36 M.R.S.A. §§ 2529 & 5219-W). Applies

retroactively to tax years beginning on or after January 1, 2004.

Qualified employees no longer have to be Maine residents for purposes

of qualification for the program (30-A M.R.S.A. § 5250-I(18)). Applies

Rather than specify a calculation for determining employee shifting for

retroactively to June 12, 2003.

purposes of calculating the Employee Tax Increment Financing benefit,

the determination is now to be made by the Commissioner of the

The term “primarily” for purposes of the sales tax exemption benefit is

Department of Economic and Community Development (36 M.R.S.A.

defined as “more than 50% of the time during the period that begins

§ 6753(12)). Applies retroactively to applications submitted on or after

on the date on which the property is first placed in service by the

September 13, 2003. See LD #449, PL 2005, c. 351.

purchaser and ends 2 years from that date or at the time the property

is sold, scrapped, destroyed or otherwise permanently removed from

service by the purchaser, whichever occurs first (36 M.R.S.A. §

1760(87)). Applies to qualified sales on or after July 1, 2005.

Use EZ Pay for

Electronic Franchise Tax

Payments

SEE

REV. 12/05

Printed under Appropriation 010.18F.0002.07

Instructions For Maine Franchise Tax Form 1120b-Me