ME LD191

Establishes a pass-through entity tax allowing partnerships and S corporations to elect to pay Maine income tax at the entity level, effective for tax years beginning January 1, 2025

Tax is calculated by multiplying each member's distributive share of Maine taxable income by the highest individual tax rate under section 5111

Members of electing pass-through entities receive a refundable credit equal to 90% of their share of taxes paid by the entity

Nonresident members whose only Maine income source is from an electing pass-through entity are not required to file individual Maine income tax returns

Residents and part-year residents may claim credit for taxes paid to other states under substantially similar pass-through entity tax regimes