Volume 28, Issue 1		January 2018

 

Maine Legislature to Consider Conformity

with Recent Federal Tax Reform

Following recent enactment of the federal Tax Cuts and Jobs Act, Governor Paul R. LePage has instructed the Office of Tax Policy to prepare options for consideration by him and the Maine Legislature to determine how best to respond to the recent federal tax changes.

Generally, amended federal tax items first apply to tax years beginning on or after January 1, 2018; however, the Legislature must also consider conformity issues relating to certain federal retroactive changes applicable to tax years beginning before January 1, 2018, including lowering the threshold for deducting medical expenses, continuing the Maine Capital Investment Credit (in lieu of conforming to federal bonus depreciation), and the taxation of the deemed repatriation of post-1986 foreign earnings. Further guidance will be available once conformity issues have been determined.

Downloadable Maine tax forms and instructions for 2017 that have been issued as of this date are consistent with conformity to the provisions noted above.  The 2018 Maine estimated tax and withholding tables reflect Maine tax law as of December 31, 2017.

If the Legislature does not enact legislation conforming to those provisions, Maine Revenue Services will inform taxpayers of those tax items and describe what taxpayers will need to do to correctly file their 2017 tax returns, to correct returns already filed or to make changes to 2018 Maine estimated tax and withholding.