An Act To Close Maine'S Tax Loophole For Offshore Profit Shifting

LD 1939 requires large corporations operating in Maine to report their global income through a "combined return" system, closing a loophole that allowed companies to shift profits offshore to avoid Maine taxes. It applies to businesses meeting specific thresholds: those reporting over $1 billion in consolidated gross revenues, subject to federal corporate alternative minimum tax, or covered by OECD's Pillar Two global tax rules. The law mandates that these companies file unified tax returns including worldwide income and apportionment factors, rather than just domestic earnings. This directly affects major out-of-state corporations with significant Maine operations that previously minimized their Maine tax liability through offshore profit shifting. The bill creates a new reporting requirement under Maine law to align with international tax standards and ensure fairer tax contributions from large multinationals.