This bill establishes, for tax years beginning on or after January 1, 2025, a pass-through entity tax on the income of partners and shareholders of S corporations to permit certain entities to elect to pay Maine income tax at the entity level. The effect of this is to allow a member of a pass-through entity a credit of 90% of the member's share of Maine income taxes paid as a pass-through entity.

Statutes affected:
Bill Text LD 191, HP 124: 36.5190