Sec. 1. 36 MRSA §5122, sub-§1, ¶J, as amended by PL 1999, c. 520, §2 and affected by §5, is further amended to read:

J. The amount claimed as a business expense that is included in the investment credit for the high-technology investment tax credit; and

Sec. 2. 36 MRSA §5122, sub-§1, ¶K, as amended by PL 1999, c. 520, §3 and affected by §5, is further amended to read:

K. For income tax years beginning on or after January 1, 1997, all items of loss, deduction and other expense of a financial institution subject to the tax imposed by section 5206, to the extent that those items are passed through to the taxpayer for federal income tax purposes, including, if the financial institution is an S corporation, the taxpayer's pro rata share and, if the financial institution is a partnership or limited liability company, the taxpayer's distributive share. An addition may not be made under this paragraph for any losses recognized on the disposition by a taxpayer of an ownership interest in a financial institution; and.

Sec. 3. 36 MRSA §5122, sub-§1, ¶L, as enacted by PL 1999, c. 520, §4 and affected by §5, is repealed.

Sec. 4. Application. This Act applies to tax years beginning on or after January 1, 1998.

Sec. 5. Retroactivity. This Act applies retroactively to June 17, 1999.

FISCAL NOTE

1999-00 2000-01

REVENUES

General Fund ($907,434) ($461,594)

Other Funds (48,766) (24,806)

This bill, establishing conformity for the self-employed health insurance deduction, will decrease budgeted individual income tax collections by $956,200 in fiscal year 1999-00, $486,400 in fiscal year 2000-01 and $198,400 in fiscal year 2001- 02. The reduction of these tax collections will decrease