Amend the amendment in Part I in section 1 by striking out all of subsection 5-C (page 517, lines 35 to 37 and page 518, lines 1 to 7 in amendment) and inserting the following:
Amend the amendment by striking out all of Parts M to P and inserting the following:
PART M
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Sec. M-1. 36 MRSA §4062, sub-§1-A, ¶A, as amended by PL 2009, c. 213, Pt. E, §1 and affected by §6, is further amended to read:
A. For the estates of decedents dying after December 31, 2002, "federal credit" means the maximum credit against the tax on the federal taxable estate for state death taxes determined under the Code, Section 2011 as of December 31, 2002 exclusive of the reduction of the maximum credit contained in the Code, Section 2011(b)(2); the period of limitations under the Code, Section 2011(c); and the termination provision contained in the Code, Section 2011(f). The state death tax deduction contained in the Code, Section 2058 must be disregarded. The unified credit must be determined under the Code, Section 2010 as of December 31, 2000. The termination provision contained in the Code, Section 2210 must be disregarded. Notwithstanding any other provision of this Title to the contrary, the tax determined by this chapter for estates of decedents dying after December 31, 2009 must be determined in accordance with the law applicable to decedents dying during calendar year 2009 , except that, for purposes of calculation of the amount of property that may be treated as Maine qualified terminable interest property under subsection 2-B, paragraph C, the applicable exclusion amount must be determined in accordance with the law applicable as of the decedent's actual date of death; and
Sec. M-2. 36 MRSA §4062, sub-§2-B, ¶C, as amended by PL 2005, c. 622, §16, is repealed and the following enacted in its place:
C. With respect to which an election is made, on a return timely filed with the assessor, to treat the property as Maine qualified terminable interest property for purposes of the tax imposed by this chapter. The amount of property with respect to which the election is made may not be less than zero or greater than the amount by which the federal applicable exclusion amount under the Code, Section 2010 exceeds the Maine exclusion amount. For the purposes of this paragraph, "federal applicable exclusion amount" does not include any deceased spousal unused exclusion amount under the Code, Section 2810.
Sec. M-3. Application. This Part applies to the estates of decedents who die after December 31, 2011.
PART N
Sec. N-1. 36 MRSA §5111, sub-§1-B, as enacted by PL 1999, c. 731, Pt. T, §3, is amended to read:
Sec. N-2. 36 MRSA §5111, sub-§1-C is enacted to read:
Sec. N-3. 36 MRSA §5111, sub-§2-B, as enacted by PL 1999, c. 731, Pt. T, §5, is amended to read:
Sec. N-4. 36 MRSA §5111, sub-§2-C is enacted to read:
Sec. N-5. 36 MRSA §5111, sub-§3-B, as enacted by PL 1999, c. 731, Pt. T, §7, is amended to read:
Sec. N-6. 36 MRSA §5111, sub-§3-C is enacted to read:
Sec. N-7. 36 MRSA §5219-S, as amended by PL 2009, c. 213, Pt. BBBB, §16, is further amended to read:
Sec. N-8. Adjustment of brackets. By December 1, 2011, the State Tax Assessor shall submit legislation to the Joint Standing Committee on Taxation that places into law the bracket amounts for tax years beginning on or after January 1, 2013 calculated under the Maine Revised Statutes, Title 36, section 5111, subsections 1-C, 2-C and 3-C and provides for continued adjustment of bracket amounts under Title 36, section 5403. The joint standing committee is authorized to report out a bill to the Second Regular Session of the 125th Legislature that implements the adjustments to the brackets.
PART O
Sec. O-1. 36 MRSA §5122, sub-§1, ¶N, as amended by PL 2007, c. 240, Pt. CCC, §2 and affected by §4, is further amended to read:
N.
With respect to property placed in service during the taxable year, an amount equal to the net increase in depreciation or expensing attributable to:
(1) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 30% bonus depreciation deduction claimed by the taxpayer pursuant to Section 101 of the federal Job Creation and Worker Assistance Act of 2002, Public Law 107-147 with respect to property placed in service during the taxable year;
(2) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 201 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 with respect to property placed in service during the taxable year; and
(3) For taxable years beginning on or after January 1, 2003 but prior to January 1, 2011, the increase in aggregate cost under Section 179 of the Code arising from amendments to the Code applicable to tax years beginning on or after January 1, 2003;
PART P
Sec. P-1. 36 MRSA §6652, sub-§4, as amended by PL 2009, c. 496, §28, is further amended to read:
Amend the amendment by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
This amendment strikes all of Parts M to P from Committee Amendment "A" and replaces them with the following provisions.
1. It restores $16,611,122 of the reduction to revenue sharing made in fiscal year 2011-12 and completely eliminates the reduction in fiscal year 2012-13.
2. It eliminates the changes to the estate tax proposed by Committee Amendment "A" except that it retains the change to the definition of "qualified terminable interest property" to conform to federal law.
3. It eliminates the changes to the income tax brackets and rates as proposed in Committee Amendment "A" and instead increases the tax brackets by 5% beginning with tax years beginning on or after January 1, 2013. It also increases the earned income tax credit to 10% and makes it refundable.
4. It eliminates the credit of 10% of federal bonus depreciation as proposed in Committee Amendment "A" but retains the conformity with federal law regarding so-called "Section 179" expensing, which allows businesses to claim business expense deductions for purchases to the same extent as permitted under federal income tax law.
5. It eliminates the reduction in the Circuitbreaker Program proposed in Committee Amendment "A" and amends the laws governing the Business Equipment Tax Reimbursement program to decrease the reimbursement percentage for business equipment reimbursement to 90% of the benefit for the 2012-2013 biennium.