An Act To Provide Equitable Tax Treatment to State-licensed Marijuana Businesses
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5122, sub-§1, ¶LL, as enacted by PL 2017, c. 474, Pt. C, §2, is amended to read:
LL. An amount equal to the net operating loss carry-forward claimed as a deduction under the Code, Section 172 in determining federal taxable income for the taxable year that was previously allowed as a deduction pursuant to subsection 2, paragraph PP QQ.
Sec. 2. 36 MRSA §5122, sub-§2, ¶PP, as enacted by PL 2017, c. 452, §31, is repealed and the following enacted in its place:
PP. For taxable years beginning on or after January 1, 2018, for business expenses related to carrying on a trade or business as a registered caregiver, a registered dispensary or a manufacturing facility, as defined in Title 22, section 2422, or a marijuana establishment or testing facility, as defined in Title 28-B, section 102, an amount equal to the deduction that would otherwise be allowable under this Part to the extent that the deduction is disallowed under the Code, Section 280E.
Sec. 3. 36 MRSA §5122, sub-§2, ¶PP, as enacted by PL 2017, c. 474, Pt. C, §3, is reallocated to 36 MRSA §5122, sub-§2, ¶QQ.
QQ.
For taxable years beginning on or after January 1, 2018, to the extent otherwise deductible, an amount equal to the net operating loss carry-forward deduction disallowed as a result of the limitation under the Code, Section 172(a)(2), but only to the extent that:
(1) Maine taxable income is not reduced below zero; and
(2) The amount has not been previously used as a modification pursuant to this paragraph.
Sec. 4. 36 MRSA §5200-A, sub-§1, ¶DD, as enacted by PL 2017, c. 474, Pt. C, §6, is amended to read:
DD. An amount equal to the net operating loss carry-forward claimed as a deduction under the Code, Section 172 in determining federal taxable income for the taxable year that was previously allowed as a deduction pursuant to subsection 2, paragraph BB FF.
Sec. 5. 36 MRSA §5200-A, sub-§2, ¶BB, as enacted by PL 2017, c. 452, §32, is repealed and the following enacted in its place:
BB. For taxable years beginning on or after January 1, 2018, for business expenses related to carrying on a trade or business as a registered caregiver, a registered dispensary or a manufacturing facility, as defined in Title 22, section 2422, or a marijuana establishment or testing facility, as defined in Title 28-B, section 102, an amount equal to the deduction that would otherwise be allowable under this Part to the extent that the deduction is disallowed under the Code, Section 280E.
Sec. 6. 36 MRSA §5200-A, sub-§2, ¶BB, as enacted by PL 2017, c. 474, Pt. C, §7, is reallocated to 36 MRSA §5200-A, sub-§2, ¶FF.
FF.
For taxable years beginning on or after January 1, 2018, to the extent otherwise deductible, an amount equal to the net operating loss carry-forward deduction disallowed as a result of the limitation under the Code, Section 172(a)(2), but only to the extent that:
(1) Maine taxable income is not reduced below zero; and
(2) The amount has not been previously used as a modification pursuant to this paragraph.
summary
This bill expands the list of marijuana businesses that are licensed by the State and are eligible to take deductions otherwise allowed under the state income tax laws to include adult use marijuana establishments and testing facilities and medical marijuana manufacturing facilities. This bill also corrects 2 lettering conflicts created when 2 separate public laws enacted new paragraphs with the same letter designations by reallocating the later enacted versions.