LAW WITHOUT
GOVERNOR'S CHAPTER
SIGNATURE
170
APRIL 26, 2022 RESOLVES
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-TWO
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H.P. 308 - L.D. 428
Resolve, Directing Maine Revenue Services To Review and Report Regarding
Worldwide Combined Reporting of Certain Corporations for Income Tax
Purposes
Sec. 1. Review of worldwide combined reporting by certain corporations
for income tax purposes. Resolved: That the Department of Administrative and
Financial Services, Maine Revenue Services, referred to in this resolve as "Maine Revenue
Services," shall review in accordance with section 2 the impact on the State's income tax
and the State's economy of adopting a system for apportionment of income for purposes of
calculating income tax for corporations that are part of an affiliated group with members
outside of the United States.
Sec. 2. Scope of review; report. Resolved: That Maine Revenue Services shall:
A. Review the State’s corporate income tax law and identify statutory and
administrative changes that would be necessary to adopt a corporate income tax system
that requires worldwide combined reporting for income tax purposes and that allows a
corporation to elect to compute income on a water’s edge combined report;
B. Consider:
(1) The need to define income of a combined group under worldwide combined
reporting;
(2) The need to adjust the State’s income tax nexus laws;
(3) The need to adjust the State’s method of apportioning corporate income for
income tax purposes;
(4) The implications of permitting corporations to elect to file a return based on
water’s edge combined reporting and conditions under which a corporation may
be allowed to withdraw from that election; and
(5) Any other statutory changes necessary to implement changes to the system
described in paragraph A; and
C. Report to the joint standing committee of the Legislature having jurisdiction over
taxation matters by February 1, 2023 the projected impact and policy considerations of
adopting a corporate income tax system that requires worldwide combined reporting
Page 1 - 130LR1634(03)
 for income tax purposes and that allows a corporation to elect to compute income by a
water’s edge combined report. Maine Revenue Services shall include in its report an
analysis of how such a system would affect conformity of the State's income tax system
with the federal income tax system, including changes to the federal system currently
being considered by the United States Congress.
Sec. 3. Legislation. Resolved: That the joint standing committee of the Legislature
having jurisdiction over taxation matters may submit legislation related to the report
submitted pursuant to this resolve to the 131st Legislature in 2023.
Page 2 - 130LR1634(03)


Statutes affected:
Bill Text LD 428, HP 308: 36.5200