Establishes a pass-through entity tax for Maine businesses, allowing certain entities to pay taxes at the entity level.

This bill establishes a pass-through entity tax for partnerships and S corporations in Maine, effective for tax years beginning on or after January 1, 2025. It allows these entities to elect to pay taxes at the entity level, with members receiving a credit for their share of the tax paid. The tax applies to affected business entities, excluding publicly traded partnerships. Members can claim a credit equal to 90% of their share of the tax paid, with certain limitations and conditions.

Establishes a pass-through entity tax for Maine businesses, allowing certain entities to pay taxes at the entity level.

This bill establishes a pass-through entity tax for partnerships and S corporations in Maine, effective for tax years beginning on or after January 1, 2025. It allows these entities to elect to pay taxes at the entity level, with members receiving a credit for their share of the tax paid. The tax applies to affected business entities, excluding publicly traded partnerships. Members can claim a credit equal to 90% of their share of the tax paid, with certain limitations and conditions.