APPROVED CHAPTER
APRIL 16, 2024 170
BY GOVERNOR RESOLVES
STATE OF MAINE
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IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FOUR
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H.P. 1212 - L.D. 1891
Resolve, to Require the Office of Tax Policy to Study the Adoption of a Pass-
through Entity Income Tax
Sec. 1. Department of Administrative and Financial Services, Bureau of
Revenue Services, Office of Tax Policy to examine and evaluate system of
taxation of business income and possible adoption of pass-through entity
income tax. Resolved: That the Department of Administrative and Financial Services,
Bureau of Revenue Services, Office of Tax Policy shall examine and evaluate the State’s
current system of taxation of business income, including the current system of taxing
pass-through business income at the partner or shareholder level, and the possible adoption
of a pass-through entity income tax to tax such pass-through income, including the
possibility of moving the taxation of that income, or some portion of that income, from the
partner or shareholder level to the business entity that generated the income. The study
must include examination of the impact of the adoption of a pass-through entity income tax
on a mandatory and an elective basis, on a permanent and time-limited basis and on a
retroactive basis. The Office of Tax Policy shall also include in the study consideration of
the impact of the federal state and local tax deduction limitation on individual taxpayers in
the State, and the manner and fiscal impact of how a pass-through entity income tax has
been enacted and implemented in other states to, in part, address the state and local tax
deduction. The Office of Tax Policy may consult with national income tax experts as
appropriate. No later than January 15, 2025, the Office of Tax Policy shall submit a report
based on the study to the joint standing committee of the Legislature having jurisdiction
over taxation matters that includes its findings and recommendations, including suggested
legislation. The joint standing committee may submit legislation related to the report to
the 132nd Legislature in 2025.
Page 1 - 131LR2189(03)


Statutes affected:
Bill Text LD 1891, HP 1212: 36.5190