PART B

Sec. B-1. 36 MRSA §5111, sub-§4, as enacted by PL 1989, c. 596, Pt. J, §1, is amended to read:

4. Additional tax. Additionally, a tax is imposed for each taxable year beginning on or after January 1, 1989, on the Maine adjusted gross income of every nonresident individual. The amount of the tax shall equal equals the tax computed under this section and chapter 805, as if the nonresident were a resident, less applicable tax credits other than that provided by section 5217-A, and multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1- C, paragraph B, to the nonresident's entire federal adjusted gross income, as modified by section 5122.

Sec. B-2. 36 MRSA §5142, sub-§8 is enacted to read:

8.__Minimum taxability threshold.__Minimum taxability thresholds for nonresidents are as follows.

A.__Compensation for personal services performed in Maine is Maine-source income, subject to taxation under this Part, if the nonresident taxpayer is present in Maine performing personal services for more than 20 days during the taxable year and directly earns or derives more than $6,000 in gross income during the taxable year in Maine from all sources.

B.__A nonresident individual who is present for business in Maine on other than a systematic or regular basis, either directly or through agents or employees, has Maine-source income derived from or effectively connected with a trade or business in Maine and subject to taxation under this Part only if the nonresident individual earns or derives more than $6,000 of gross income during the taxable year from contractual or sales-related activities.

Sec. B-3. 36 MRSA §5200-A, sub-§2, ¶H, as amended by PL 1997, c. 746, §11 and affected by §24, is further amended to read:

H. For each taxable year subsequent to the year of the loss, an amount equal to the absolute value of the net operating loss arising from tax years beginning on or after January 1, 1989 but before January 1, 1993 and that, pursuant to the Code, Section 172, was carried back for federal income tax purposes, but only to the extent that: