7) Question: If a qualified business places property in a separate legal entity such as an LLC for legal purposes unrelated to tax planning, is that property included in the numerator of the apportionment factor?
Answer: The property is qualified and will be included in both the numerator and denominator if the qualified business and the separate legal entity form a single business enterprise as defined by DECD. Otherwise, only property owned directly by the qualified business may be included in the numerator, even if, due to their unitary nature, both companies must file a combined report. Maine property from both businesses must be included in the denominator of the apportionment factor for calculating the PTDZ credit. For more information about single business enterprise, see the document at http://www.mainebiz.org/whymaine/pdf/singlebusinessenterprisedefinition.pdf
