132nd MAINE LEGISLATURE
		LD 1939		LR 1463(01)
	An Act to Close Maine's Tax Loophole for Offshore Profit Shifting
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Matlack of St. George
	Committee: Taxation
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Potential current biennium revenue impact - General Fund
			FY 2025-26	FY 2026-27	Projections  FY 2027-28	Projections  FY 2028-29
Net Cost (Savings)
	General Fund		$0	$627,612	$729,695	$756,893
Appropriations/Allocations
	General Fund		$0	$627,612	$729,695	$756,893
Fiscal Detail and Notes
	The bill would replace the State’s current corporate income taxation of water’s edge income, inclusive of 50% of Global Intangible Low-Taxed Income (GILTI), with mandatory worldwide income reporting, using worldwide factors for income apportionment, for the corporations covered and is expected to have a modest impact on corporate income tax revenue, with likely outcomes ranging from a small revenue loss to a small revenue gain. To implement these tax changes, the bill provides a General Fund appropriation of $627,612 in fiscal year 2026-27 to the Department of Administrative and Financial Services, Bureau of Revenue Services for administrative costs including: one new Tax Analyst, two new Tax Examiner positions, and two new Revenue Agent positions as well as funding for one-time computer programming costs.