APPROVED CHAPTER
JULY 26, 2023 444
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-THREE
_____
S.P. 432 - L.D. 1063
An Act to Provide Equitable Tax Treatment to State-licensed Cannabis
Businesses
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 28-B MRSA §1101, sub-§2, ¶D is enacted to read:
D. Any funds remaining in the fund after expenditures made in accordance with
paragraphs A to C must be used to fund:
(1) The cost of the tax deductions for business expenses related to carrying on a
business as a cannabis establishment or a testing facility provided pursuant to Title
36, section 5122, subsection 2, paragraph PP and Title 36, section 5200-A,
subsection 2, paragraph BB. By June 1st annually, the State Tax Assessor shall
determine the cost of those deductions during the prior calendar year and report
that amount to the State Controller, who shall transfer that amount from the
remaining funds in the fund to the General Fund; and
(2) The cost of the position in the Bureau of Revenue Services within the
department to administer the tax deductions provided pursuant to Title 36, section
5122, subsection 2, paragraph PP and Title 36, section 5200-A, subsection 2,
paragraph BB. By June 1st annually, the commissioner shall determine the cost of
the position in the bureau to administer those deductions during the prior calendar
year and report that amount to the State Controller, who shall transfer that amount
from the remaining funds in the fund to the General Fund.
Sec. 2. 36 MRSA §5122, sub-§2, ¶PP, as enacted by PL 2017, c. 452, §31, is
amended to read:
PP. For taxable years beginning on or after January 1, 2018, for business expenses
related to carrying on a trade or business as a registered caregiver or a registered
dispensary, as defined in Title 22, section 2422, an amount equal to the deduction that
would otherwise be allowable under this Part to the extent that the deduction is
disallowed under the Code, Section 280E. For taxable years beginning on or after
January 1, 2023, for business expenses related to carrying on a trade or business as a
registered caregiver, a registered dispensary or a manufacturing facility, as defined in
Page 1 - 131LR0242(05)
 Title 22, section 2422, or a cannabis establishment or testing facility, as defined in Title
28-B, section 102, an amount equal to the deduction that would otherwise be allowable
under this Part to the extent that the deduction is disallowed under the Code, Section
280E.
Sec. 3. 36 MRSA §5200-A, sub-§2, ¶BB, as enacted by PL 2017, c. 452, §32, is
amended to read:
BB. For taxable years beginning on or after January 1, 2018, for business expenses
related to carrying on a trade or business as a registered caregiver or a registered
dispensary, as defined in Title 22, section 2422, an amount equal to the deduction that
would otherwise be allowable under this chapter to the extent that the deduction is
disallowed under the Code, Section 280E. For taxable years beginning on or after
January 1, 2023, for business expenses related to carrying on a trade or business as a
registered caregiver, a registered dispensary or a manufacturing facility, as defined in
Title 22, section 2422, or a cannabis establishment or testing facility, as defined in Title
28-B, section 102, an amount equal to the deduction that would otherwise be allowable
under this chapter to the extent that the deduction is disallowed under the Code, Section
280E.
Sec. 4. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Establishes one limited-period Tax Examiner position through June 7, 2025 and
provides funding for related All Other costs.
GENERAL FUND 2023-24 2024-25
Personal Services $88,100 $119,500
All Other $5,818 $4,345
__________ __________
GENERAL FUND TOTAL $93,918 $123,845
Page 2 - 131LR0242(05)


Statutes affected:
Bill Text LD 1063, SP 432: 36.5122, 36.5200
Bill Text ACTPUB , Chapter 444: 36.5122, 36.5200