Sec. 38. 36 MRSA §5102, sub-§10, as amended by PL 1991, c. 546, §33, is further amended to read:

10. Taxable corporation. "Taxable corporation" means, for any taxable year, a corporation which that, at any time during that taxable year, realized Maine net income. "Taxable corporation" includes any S corporation that is required by section 5241 to file a return and that is subject to federal tax under the Code, Section 1374 and 1375.

Sec. 39. 36 MRSA §5122, sub-§2, ĥE, as repealed and replaced by PL 1989, c. 880, Pt. G, §2, is amended to read:

E. Pick-up contributions paid to the taxpayer by the Maine State Retirement System or distributed as the result of a rollover, whether or not included in federal adjusted gross income, that have been previously taxed under this Part;

Sec. 40. 36 MRSA c. 814 is enacted to read:

CHAPTER 814

LIMITED LIABILITY COMPANIES

§5180.__Taxation of limited liability companies

1.__Classified as partnership.__For purposes of taxation pursuant to this Part, a limited liability company formed under Title 31, chapter 13 or qualified to do business in this State as a foreign limited liability company is classified as a partnership, unless classified otherwise for federal income tax purposes, in which case the limited liability company is classified in the same manner as it is classified for federal income tax purposes.