Maine Minimum Tax - 2001 (Page 2 of 4) in pdf

SCHEDULE A INSTRUCTIONS, continued

development organization. Use of these funds include educational ex-

available as part of the Maine minimum tax worksheet for trusts/estates at:

penses, home and auto purchases or repairs, emergency expenses for basic

, or by calling 207-624-7894.

needs, capital to start a business, and health care costs. Accounts are

funded by deposits made by family members participating in the program

Line 16. CREDIT FOR DEPENDENT HEALTH BENEFITS PAID.

and matching funds from community development organizations. Depos-

Employers that offer a qualified health benefit plan and that employ fewer

its to the fund are not exempt from tax; however, withdrawals (both prin-

than 5 employees may qualify for a credit equal to the lesser of 20% of the

cipal and interest) are exempt from Maine income tax. 10 M.R.S.A. §

dependent health benefits paid by the employer or $125 per employee with

1077(4).

dependent health benefits coverage. A taxpayer that employs 5 or more

New legislation provides a credit to contributors to family devel-

employees after qualifying for the credit may continue to qualify for the

opment matching fund accounts. The credit per tax return is equal to the

credit for another 2 years. The credit is limited to 50% of the income tax due.

lesser of $25,000 or 50% of the amount contributed. The credit is limited

The credit is subject to additional restrictions. Enclose a schedule showing

to the tax liability on the return and must be taken after the allowance of all

the computation of this credit. Carryover provisions apply. 36 M.R.S.A.

other credits. Maine itemized deductions must exclude any contributions

§ 5219-O.

claimed for this credit. The aggregate allowable credit amount in a state

fiscal year is limited to $200,000. The Finance Authority of Maine is

Line 17. CLEAN FUEL CREDIT. The credit is 50% of expenditures

required to certify the allowable credit for each contributor. The credit

made or incurred from January 1, 1999 to December 31, 2001 for construc-

applies to tax years beginning on or after January 1, 2000. 36 M.R.S.A. §

tion, installation of, or improvements to any filling station or charging

5216-C.

station located in Maine for the purpose of providing clean fuels to the

general public for use in motor vehicles. From January 1, 2002 to Decem-

Line 20. QUALITY CHILD CARE INVESTMENT TAX CREDIT.

ber 31, 2005 the credit is 25% of these expenditures. Enclose a schedule

Trusts/estates making certified quality child care investments of no less

showing the computation of this credit. The credit automatically expires

than $10,000 qualify for a credit equal to $1,000 each year for 10 years,

January 1, 2006. 36 M.R.S.A. § 5219-P.

plus $10,000 at the end of the 10-year period. The credit is nonrefundable;

however, unused credit amounts may be carried forward until exhausted.

Line 18. HISTORIC REHABILITATION CREDIT. A taxpayer is

The Maine Department of Human Services (“DHS”), Office of Child Care

allowed a credit equal to the amount of the federal credit including carryovers

and Head Start must certify eligible investments. Attach a copy of the

for rehabilitation of certified historic structures located in Maine. The

certificate when claiming this credit. For questions about quality child care

credit is nonrefundable and is limited to $100,000 annually per taxpayer.

and the certification process, call DHS, Office of Child Care and Head Start

The credit is subject to the same recapture provisions as under the Internal

at (207) 287-5099.

Revenue Code. The credit applies to tax years beginning on or after Janu-

ary 1, 2000. 36 MRSA § 5219-R.

Line 23. ALLOWABLE CREDITS. These credits are not refundable.

Line 19. FAMILY DEVELOPMENT ACCOUNT CREDIT. Individuals

The total credits claimed cannot exceed the Maine Fiduciary Income Tax

whose family income is below 200% of the poverty level may open a

otherwise due for the taxable year.

family development account in connection with an approved community

SCHEDULE NR INSTRUCTIONS

A nonresident trust or estate is taxed only on the undistributed portion of

Line 3. Enter the fiduciary adjustment (Schedule 1) pertaining to Maine-

distributable Maine-source income. The nonresident beneficiaries are taxed

source income; however, no modification is made for income which is

on their share of the distributable Maine-source income. Resident benefi-

exempt from federal tax, but taxable to Maine to the extent that it is already

ciaries are taxed upon their entire share of the trust or estate income as

included in federal distributable net income.

though the trust or estate were resident.

Complete Schedule 2, Form 1041ME, page 2.

Lines 1a - 1g. Enter in column A income, gain or loss as reported on the

federal return. Enter in column B amounts derived from or connected with

sources in Maine (see 36 M.R.S.A. § 5142 (nonresident taxable income)

and MRS Rule 806 (nonresident individual income tax). Enter non-Maine

source income in column C.

Line 1h. Add or subtract the income, gain, loss, or deductions which were

recognized for federal income tax purposes but were not included in federal

distributable net income (e.g., gain from sale of Maine real estate allocated

to corpus would not be included in federal distributable net income, but

would be added here).

Maine Minimum Tax - 2001 Page 2

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