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Instructions for calculating Maine income Modiﬁ cations

for purposes of 2015 alternative minimum tax, cont.

Line 11. Income not taxable under the Constitution of

its owner), enter the amount on this line. Attach federal

Maine or the U.S. Enter income this state is prohibited from

Schedule K-1 reporting this amount.

taxing under the Constitution or laws of the United States or

the Constitution of the State of Maine, to the extent included

Line 15. State income tax refunds. Enter the amount of

in federal AMTI. The amount entered on this line must be

state income tax refunds from Form 1120ME, line 2h and

decreased by any expenses incurred in the production of

included in federal AMTI provided the amount has already

that income to the extent that these expenses are deductible

been taxed by Maine. This modiﬁ cation may not reduce

in determining federal AMTI. Attach a worksheet detailing

Maine AMTI to less than zero, and the amount refunded

the amount claimed on this line.

from this state or another state must not have been

previously used as a modiﬁ cation. Any unused portion of

Line 12. Dividends from certain afﬁ liated corporations.

the modiﬁ cation may be carried forward 20 years.

Enter 50% of the apportionable dividend income the taxpayer

received during the taxable year from an afﬁ liated corporation

Line 16. Bonus depreciation/section 179 expense

that is not included with the taxpayer in a Maine combined

recapture. The recapture amount claimed in any year is

report. Dividends must be included on Form 4626, line 7. In

based on the addition modiﬁ cation for which the recapture

order to be afﬁ liated, a corporation must be more than 50%

relates. The recapture amount for minimum tax is the same

owned. Although this may include domestic entities, most

as the recapture amount as calculated for regular tax on

afﬁ liated corporations not included in a combined report are

Form 1120ME, line 2i. For more information, go to the MRS

foreign entities.

web site at (select Income

tax Guidance Documents and then select Maine Income

Line 13. Alternative minimum tax net operating loss

Modiﬁ cations Related to Bonus Depreciation and Section

deduction carryover. If you have an Alternative Minimum

179 Expense).

Tax (AMT) net operating loss for tax years ending in 2001 or

later that was carried back for federal purposes, but added

Line 17. Other. Include on this line the following items:

back to Maine AMT income under §§ 5200-A(1)(H) or 5200-

• Northern Maine Transmission Corporation adjustment.

A(1)(M), you are allowed a deduction on this line equal

Income, including gain from sale of bonds, notes

to the amount of the income addition required for Maine

or other evidences of indebtedness and any other

income tax purposes. The deduction must be within the

income or money of the Northern Maine Transmission

allowable NOL carryforward period plus the number of years

Corporation are exempt from state income tax (see 10

the carryforward was denied under §§ 5200-A(2)(H)(5) or

M.R.S. § 9205). Enter only if included in federal AMTI.

5200-A(2)(L)(5). The deduction cannot reduce Maine AMT

• Gain on sale of multifamily affordable housing. This

taxable income to less than zero and must not have been

modiﬁ cation equals the total of capital gains and

previously used as a modiﬁ cation.

ordinary income resulting from depreciation recapture

pursuant to Code sections 1245 and 1250 realized

If you have an AMT net operating loss carryforward that was

on the sale of multifamily affordable housing property.

limited under § 5200-A(1)(U) for the tax year beginning in

Enter amount included in federal AMTI.

Qualiﬁ ed

2008 or denied under § 5200-A(1)(V) for tax years beginning

property must be certiﬁ ed by the Maine State Housing

in 2009 through 2011, you are allowed a deduction on this line

Authority (“MSHA”). A copy of the MSHA certiﬁ cate

equal to the amount of the AMT income addition required for

must be attached to the return.

Maine income tax purposes. The deduction must be within

• Discharge of indebtedness. Enter on this line income

the allowable NOL carryforward period plus the number of

recognized at the federal level through the deferral of

years the carryforward was limited or denied under §§ 5200-

income from the discharge of indebtedness claimed as

A(1)(U) or 5200-A(1)(V) and 5200-A(2)(T). The deduction

a Maine income addition modiﬁ cation in 2009 or 2010.

cannot reduce Maine AMT taxable income to less than zero

Generally, the recognition of this income is deferred

and must not have been previously used as a modiﬁ cation.

until 2014 for federal tax purposes. In no event may

For more information and examples, go to

the aggregate amount claimed on this line exceed

revenue/incomeestate and select Guidance Documents.

the total addition modiﬁ cations claimed for 2009 and

2010 under 36 M.R.S. § 5200-A(1)(W) related to the

Line 14. Income from ownership interest in pass-through

deferral under the Code section 108(i).

entity ﬁ nancial institutions subject to Maine franchise

• Seed Capital Investment Tax Credit. Enter on this line,

tax. Financial institutions are subject to Maine’s franchise

to the extent included in federal AMT taxable income,

tax, regardless of organizational structure. If federal AMTI

the refundable portion of the seed capital investment

includes income from ownership of a ﬁ nancial institution

tax credit under § 5216-B received by, or from, a

that is a pass-through entity (such as a partnership, S

private venture capital fund.

corporation, or an entity disregarded as separate from

Worksheet For Maine Form 1120me (Schedule B, Line 20) - Modification For Alternative Minimum Tax - 2015 Page 3

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