130th MAINE LEGISLATURE
FIRST REGULAR SESSION-2021
Legislative Document No. 498
H.P. 361 House of Representatives, February 19, 2021
An Act To Reauthorize a 3 Percent Tax on Income over $200,000 To
Lift All Maine Workers out of Poverty
Received by the Clerk of the House on February 17, 2021. Referred to the Committee on
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative SYLVESTER of Portland.
Printed on recycled paper
 1 Be it enacted by the People of the State of Maine as follows:
2 Sec. 1. 36 MRSA §5111, sub-§7 is enacted to read:
3 7. Income tax surcharge. For tax years beginning on or after January 1, 2022, in
4 addition to any other tax imposed by this chapter, an income tax surcharge at the rate of
5 3% is imposed on that portion of the taxpayer's Maine taxable income in excess of
6 $200,000.
7 Sec. 2. 36 MRSA §5219-S, sub-§1, as amended by PL 2019, c. 527, Pt. B, §2, is
8 further amended to read:
9 1. Resident taxpayer. A resident individual who is an eligible individual is allowed
10 a credit against the tax otherwise due under this Part in the amount of 25% 100% of the
11 federal earned income credit for the same taxable year for a resident eligible individual
12 who does not have a qualifying child and 12% of the federal earned income credit for the
13 same taxable year for all other resident eligible individuals.
14 Sec. 3. 36 MRSA §5219-S, sub-§2, as amended by PL 2019, c. 527, Pt. B, §2, is
15 further amended to read:
16 2. Nonresident taxpayer. A nonresident individual who is an eligible individual is
17 allowed a credit against the tax otherwise due under this Part in the amount of 25% 100%
18 of the federal earned income credit for the same taxable year for a nonresident eligible
19 individual who does not have a qualifying child and 12% of the federal earned income
20 credit for the same taxable year for all other nonresident eligible individuals, multiplied by
21 the ratio of the individual's Maine adjusted gross income, as defined in section 5102,
22 subsection 1‑C, paragraph B, to the individual's entire federal adjusted gross income, as
23 modified by section 5122.
24 Sec. 4. 36 MRSA §5219-S, sub-§3, as amended by PL 2019, c. 527, Pt. B, §2, is
25 further amended to read:
26 3. Part-year resident taxpayer. An eligible individual who files a return as a part-
27 year resident in accordance with section 5224‑A is allowed a credit against the tax
28 otherwise due under this Part in the amount of 25% 100% of the federal earned income
29 credit for the same taxable year for an eligible part-year individual who does not have a
30 qualifying child and 12% of the federal earned income credit for the same taxable year for
31 all other eligible part-year individuals, multiplied by a ratio, the numerator of which is the
32 individual's Maine adjusted gross income as defined in section 5102, subsection 1‑C,
33 paragraph A for that portion of the taxable year during which the individual was a resident
34 plus the individual's Maine adjusted gross income as defined in section 5102, subsection
35 1-C, paragraph B for that portion of the taxable year during which the individual was a
36 nonresident and the denominator of which is the individual's entire federal adjusted gross
37 income, as modified by section 5122.
38 Sec. 5. Application. This Act applies to tax years beginning on or after January 1,
39 2022.
40 SUMMARY
41 This bill imposes an income tax surcharge on taxable income exceeding $200,000 and
42 increases the Maine earned income tax credit to equal the federal earned income tax credit.
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Statutes affected:
Bill Text LD 498, HP 361: 36.5219