Sec. JJ-3. 36 MRSA §5203-C is enacted to read:

§5203-C.__State minimum tax

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Alternative minimum tax" means any excess of tentative minimum tax over the regular income tax.

B.__"Alternative minimum taxable income" means federal alternative minimum taxable income:

(1) Reduced by income that states are prohibited under federal law from subjecting to income tax to the extent included in federal alternative minimum taxable income;

(2) Reduced by income, loss or deductions by which the State decreases federal adjusted gross income in the case of individuals or federal taxable income in the case of corporations, estates and trusts under section 5122; 5125, subsection 3; 5164; 5176; or 5200-A or as otherwise indicated by law to the extent included in federal alternative minimum taxable income; and

(3) Increased by income, loss or deductions by which the State increases federal__adjusted gross income in the case of individuals or federal taxable income in the case of corporations, estates and trusts under section 5122; 5125, subsection 3; 5164; 5176; or 5200-A or as otherwise indicated by law to the extent not included in federal alternative minimum taxable income.

For corporations with income from business activity that is taxable both inside and outside this State, "alternative minimum taxable income" means federal alternative minimum taxable income adjusted in accordance with subparagraphs 1, 2 and 3, the result of which is multiplied by the fraction described in section 5211, subsection 8.__For nonresident estates and trusts with income derived from Maine sources, "alternative minimum taxable income" means federal alternative minimum taxable income adjusted in accordance with subparagraphs 1, 2 and 3, the result of which is multiplied by a fraction the numerator of which is the taxpayer's alternative minimum taxable income from Maine