Instructions For Maine Franchise Tax Form 1120b-Me (Page 3 of 6) in pdf

SPECIFIC INSTRUCTIONS

Line 1a. Net Income Per Books:

Enter net income per

requires the addition of $5 million of IRC § 38 property based

books from federal Form 1120, 1120S or 1065.

on the Internal Revenue Code of 1954, as of December 31,

1985, § 38(b)(1), and 100 new jobs attributable to that

Line 1b. Maine Net Income:

Financial institutions that are

investment in the 24-month period following the date the

not part of an affiliated-unitary group and have income solely

property was placed in service. For further details see 36

from activity within Maine must enter here the same amount

M.R.S.A. § 5215. Jobs created between August 1, 1998

as on line 1a. Financial institutions that are members of an

and October 1, 2001 must be covered by qualified

affiliated-unitary group must file a combined report (Form

retirement and health insurance plans, and wages must

CRB). A financial institution that is taxable both in and outside

be greater than the average per capita income in the labor

Maine must apportion its net income by completing Schedule

market area in which the employees are employed.

A on page 2 of Form 1120B-ME. The instructions for Schedule

A are on page 5. For information on how to file a Maine

Employer-Assisted Day Care Tax Credit:

A taxpayer

combined report (Form CRB), see paragraph 11 of the General

constituting an employing unit is allowed a credit for providing

Instructions on the previous page and the instructions for Form

day care for, or paying day care expenses of, employees, subject

CRB.

to the limitations of 36 M.R.S.A. § 5217. The tax credit is limited

to the lowest of $5,000, 20% of the cost incurred, or $100 for

Line 2a. Total End-of-year Assets:

Enter total end-of-year

each child of an employee of the taxpayer enrolled on a full-

assets from federal Form 1120, 1120S or 1065.

time basis. Carryover provisions apply. This credit is doubled

Line 2b. Maine Assets:

Financial institutions that are not

if the day care provided constitutes quality child care. The Maine

part of an affiliated-unitary group and have income solely from

Department of Health and Human Services (“DHHS”), Office

activity within Maine must enter here the same amount as on

of Child Care and Head Start, certifies quality child care facilities.

line 2a. Financial institutions that are members of an affiliated-

Attach a copy of the certificate when claiming the double credit

unitary group must file a combined report (Form CRB). A

for quality child care. For more information on quality child

financial institution that is taxable both in and outside Maine

care services and the certification process, call DHHS, Office

shall apportion its assets by completing Schedule A on page

of Child Care and Head Start, at 207-287-5060.

2 of Form 1120B-ME. The instructions for Schedule A are on

Quality Child Care Investment Credit:

Businesses, other

page 5 of Form 1120B-ME. For information on how to file a

than self-employed individuals, making certified investment

Maine combined report (Form CRB), see paragraph 11 of the

in quality child care services qualify for a credit equal to 30%

General Instructions on the previous page and the instructions

of up to $30,000 of eligible expenditures. Carryover provisions

for Form CRB.

apply. The Maine Department of Health and Human Services,

Line 3a. Tax on Maine Net Income:

The tax rate on income

Office of Child Care and Head Start, must certify eligible

is 1% of Maine net income as listed on line 1b.

investments. Attach a copy of the certificate when claiming

Line 3b. Tax on Assets:

The franchise tax rate on assets is

this credit. 36 M.R.S.A. § 5219-Q. For more information on

8 cents (8¢) per $1,000 (0.008%) of assets as listed on line

quality child care services and the certification process, call

DHHS, Office of Child Care and Head Start, at 207-287-5060.

2b.

Employer-Provided Long-Term Care Benefits Credit:

Lines 4a, b, c:

These lines are for entities that made estimated

tax payments and deposits with an extension voucher, and

Employers are eligible for the employer-provided long-term

care credit if the policy on which premiums are paid is certified

for those taxpayers filing amended returns and claiming credit

by the Maine Bureau of Insurance or the policy meets the

for tax paid with original return.

federal definition of a qualified long-term care insurance

Line 4d. Net Operating Loss Credit:

A credit is allowed

contract under the Internal Revenue Code. If the qualifying

against franchise tax on assets in the case of a taxable entity

policy is one certified by the Bureau of Insurance, indicate the

that sustains a book net operating loss. The credit is computed

policy number when claiming this credit. 36 M.R.S.A. § 5217-

by multiplying the book net operating loss by the franchise tax

rate on income (0.01). The total amount of the credit allowed is

limited to the franchise tax on assets as listed on line

3b.

Excess

Machinery and Equipment Investment Tax Credit:

Enter

the amount of the credit carried forward to this tax year. At-

credit amounts may be carried over to the next five (5) tax

years and may be applied against the total tax listed on line 3c.

tach a schedule verifying the amount carried forward.

If you carry over an excess credit from a previous year, attach

Biofuel Production And Use Tax Credit:

A taxpayer engaged

a carryover schedule to support your entry on line 4d.

in the production of biofuels in Maine who has received

certification from the Commissioner of the Maine Department

Line 4e. Other Credits:

A list of allowable tax credits follows.

Except for the Machinery and Equipment Investment Tax Credit,

of Environmental Protection (DEP) is allowed a credit against

you must complete and attach a tax credit worksheet for

the tax imposed on income derived during the taxable year

from the production of biofuel. The credit is equal to the amount

each tax credit used to reduce tax liability. Tax credit worksheets

of $0.05 per gallon of liquid biofuel or gaseous biofuel with a

may be downloaded from the internet. Go to

revenue/forms. You may also order worksheets by telephone

BTU equivalent to that of one gallon of gasoline that replaces

by calling (207) 624-7894. Enter the total amount of credit used

the use of petroleum or liquid fuels derived from other fossil

carbon sources. For blends with petroleum or other non-

to reduce tax liability on line 4e. The total amount of all credits

biofuels, the credit is allowed only on the portion of that blend

used to reduce tax liability can not exceed the total tax

liability on line 3c.

that constitutes biofuel. Biofuel for which the credit is allowed

must meet state and federal regulatory requirements applicable

Maine Seed Capital Tax Credit:

The tax credit allowed is based

to the nature and intended use of the fuel produced. The credit

on the amount authorized by the Finance Authority of Maine. A

allowed, including carryovers, may not reduce the tax otherwise

copy of the tax credit certificate must be attached to the return.

due to less than zero. Unused credits may be carried over for

The amount of credit is subject to limitations as outlined in 36

5 taxable years. When claiming this credit, attach a copy of the

M.R.S.A. § 5216-B.

certificate issued by the Maine Department of Environmental

Jobs and Investment Tax Credit:

Eligibility for this credit

Protection. 36 M.R.S.A. § 5219-X.

REV. 12/05

Instructions For Maine Franchise Tax Form 1120b-Me Page 3

Related Articles

Related forms

Related Categories