Gov. Paul LePage has signed legislation (Ch. 1, Laws 2015) that updates Maine’s corporate income and personal income tax federal Internal Revenue Code (IRC) conformity date to December 31, 2014 (previously December 31, 2013). The change applies to tax years beginning on or after January 1, 2014. This includes conformity to the extender items enacted by the federal Tax Increase Prevention Act of 2014, except that Maine continues to decouple from the federal bonus depreciation provisions.
In addition, the legislation extends the Maine capital investment credit for taxable years beginning in 2014 with respect to depreciable property placed in service in the state. The credit is equal to 9% of the amount of the net increase in depreciation attributable to the depreciation deduction claimed by the taxpayer under IRC §168(k) with respect to property placed in service in Maine during the taxable year.
Maine tax forms and instructions for 2014 (including the credit worksheet) were developed with the expectation that the legislation would be enacted; therefore, no changes to the 2014 tax forms or instructions are required.