Public Laws

124th Legislature

First Regular Session


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Chapter 213

H.P. 274 - L.D. 353

PART BBBB

Sec. BBBB-1. 36 MRSA 111, sub-1-A, as amended by PL 2007, c. 539, Pt. CCC, 1 and affected by 19, is further amended to read:

1-A.Code. "Code" means the United States Internal Revenue Code of 1986 and amendments to that Code as of February 13, 2008 17, 2009.

Sec. BBBB-2. 36 MRSA 5122, sub-1, Z, as enacted by PL 2007, c. 539, Pt. CCC, 4, is amended to read:

Z.For income tax years beginning on or after January 1, 2008, the amount of any qualified state and local tax benefit and any qualified payment excluded from gross income pursuant to the Code, Section 139(b); and

Sec. BBBB-3. 36 MRSA 5122, sub-1, AA, as enacted by PL 2007, c. 539, Pt. CCC, 5, is amended to read:

AA.For taxable years beginning on or after January 1, 2008 but prior to January 1, 2010, an amount equal to the net increase in depreciation attributable to the 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 103 of the Economic Stimulus Act of 2008, Public Law 110-185 with respect to property placed in service during the taxable year. under the Code, Section 168(k) arising from amendments to the Code applicable to taxable years beginning on or after January 1, 2008;

Sec. BBBB-4. 36 MRSA 5122, sub-1, BB is enacted to read:

BB. The amount of unemployment compensation received to the extent excluded from federal gross income in accordance with the Code, Section 85(c);

Sec. BBBB-5. 36 MRSA 5122, sub-1, CC is enacted to read:

CC. For tax years beginning on or after January 1, 2009 but before January 1, 2011, an amount equal to the gross income during the taxable year from the discharge of indebtedness deferred under the Code, Section 108(i); and

Sec. BBBB-6. 36 MRSA 5122, sub-2, AA, as corrected by RR 2007, c. 2, 23, is amended to read:

AA.For taxable years beginning on or after January 1, 2009, an amount equal to the net decrease in the depreciation deductions allowable under sections 167 and 168 of the Code that would have been applicable to that property had the 50% bonus depreciation deduction under Section 103 of the Economic Stimulus Act of 2008, Public Law 110-185 the Code, Section 168(k) not been claimed with respect to such property placed in service on or after January 1, 2008 for which an addition was required under subsection 1, paragraph AA in a prior year.

Upon the taxable disposition of property to which this paragraph applies, the amount of any gain or loss includable in federal adjusted gross income must be adjusted for Maine income tax purposes by an amount equal to the difference between the addition modification for such property under subsection 1, paragraph AA and the subtraction modifications allowed pursuant to this paragraph.

The total amount of subtraction claimed for property under this paragraph for all tax years may not exceed the addition modification under subsection 1, paragraph AA for the same property; and

Sec. BBBB-7. 36 MRSA 5122, sub-2, BB, as reallocated by RR 2007, c. 2, 24, is amended to read:

BB.The amount of pension benefits to the extent included in federal adjusted gross income under a military retirement plan as defined in paragraph M that exceed the amount of military retirement plan pension benefits deducted under paragraph M and that are received by a person who practices as a licensed dentist in this State for an average of at least 20 hours per week during the tax year and who accepts patients who receive benefits under the MaineCare program administered under Title 22, chapter 855 . ; and

Sec. BBBB-8. 36 MRSA 5122, sub-2, CC is enacted to read:

CC. An amount equal to the gross income from the discharge of indebtedness previously deferred under the Code, Section 108(i) and included in federal adjusted gross income. The total subtraction for all years under this paragraph may not exceed the amount of the addition modification under subsection 1, paragraph CC for the same indebtedness.

Sec. BBBB-9. 36 MRSA 5124-A, first , as amended by PL 2005, c. 12, Pt. P, 5, is further amended to read:

The standard deduction of a resident individual is equal to the standard deduction as determined in accordance with the Code, Section 63, exclusive of the Code, Section 63(c)(1)(C) and Section 63(c)(1)(E), except that for tax years beginning after 2002, the Code, Section 63(c)(2) must be applied as if the basic standard deduction is $5,000 in the case of a joint return and a surviving spouse and $2,500 in the case of a married individual filing a separate return.

Sec. BBBB-10. 36 MRSA 5200-A, sub-1, T, as amended by PL 2007, c. 700, Pt. B, 2, is further amended to read:

T.For taxable years beginning on or after January 1, 2008 but prior to January 1, 2010, an amount equal to the net increase in depreciation attributable to the 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 103 of the Economic Stimulus Act of 2008, Public Law 110-185 with respect to property placed in service during the taxable year under the Code, Section 168(k) arising from amendments to the Code applicable to taxable years beginning on or after January 1, 2008; and

Sec. BBBB-11. 36 MRSA 5200-A, sub-1, U, as enacted by PL 2007, c. 700, Pt. B, 3, is amended to read:

U.For tax years beginning in 2008, 10% of the absolute value in excess of $100,000 of any net operating loss that, pursuant to the Code, Section 172, is being carried over for federal income tax purposes to the taxable year by the taxpayer . ; and

Sec. BBBB-12. 36 MRSA 5200-A, sub-1, V is enacted to read:

V. For tax years beginning on or after January 1, 2009 but before January 1, 2011, an amount equal to the gross income during the taxable year from the discharge of indebtedness deferred under the Code, Section 108(i).

Sec. BBBB-13. 36 MRSA 5200-A, sub-2, R, as amended by PL 2007, c. 700, Pt. B, 5, is further amended to read:

R.For taxable years beginning on or after January 1, 2009, an amount equal to the net decrease in the depreciation deductions allowable under sections 167 and 168 of the Code that would have been applicable to that property had the 50% bonus depreciation deduction under Section 103 of the Economic Stimulus Act of 2008, Public Law 110-185 the Code, Section 168(k) not been claimed with respect to such property placed in service on or after January 1, 2008 for which an addition was required under subsection 1, paragraph T in a prior year.

Upon the taxable disposition of property to which this paragraph applies, the amount of any gain or loss includable in federal adjusted gross income must be adjusted for Maine income tax purposes by an amount equal to the difference between the addition modification for such property under subsection 1, paragraph T and the subtraction modifications allowed pursuant to this paragraph.

The total amount of subtraction claimed for property under this paragraph for all tax years may not exceed the addition modification under subsection 1, paragraph T for the same property; and

Sec. BBBB-14. 36 MRSA 5200-A, sub-2, S, as enacted by PL 2007, c. 700, Pt. B, 6, is amended to read:

S.An amount equal to the value of any prior year addition modification under subsection 1, paragraph U, but only to the extent that:

(1) Maine taxable income is not reduced below zero;

(2) The taxable year is within the allowable federal period for carryover of the net operating loss plus one year; and

(3) The amount has not been previously used as a modification pursuant to this subsection . ; and

Sec. BBBB-15. 36 MRSA 5200-A, sub-2, T is enacted to read:

T. An amount equal to the gross income from discharge of indebtedness previously deferred under the Code, Section 108(i) and included in federal taxable income. The total subtraction for all years under this paragraph may not exceed the amount of the addition modification under subsection 1, paragraph V for the same indebtedness.

Sec. BBBB-16. 36 MRSA 5219-S, as repealed and replaced by PL 2007, c. 693, 31, is amended to read:

5219-S. Earned income credit

1.Resident taxpayer. A resident individual is allowed a credit against the tax otherwise due under this Part in the amount of 5% of the federal earned income credit for the same taxable year , except that for tax years beginning in 2009 and 2010, the applicable percentage is 4%.
2.Nonresident taxpayer. A nonresident individual is allowed a credit against the tax otherwise due under this Part in the amount of 5% of the federal earned income credit for the same taxable year , except that for tax years beginning in 2009 and 2010, the applicable percentage is 4%, multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the individual's entire federal adjusted gross income, as modified by section 5122.
3.Part-year resident taxpayer. An individual who files a return as a part-year resident in accordance with section 5224-A is allowed a credit against the tax otherwise due under this Part in the amount of 5% of the federal earned income credit for the same taxable year , except that for tax years beginning in 2009 and 2010, the applicable percentage is 4%, multiplied by a ratio, the numerator of which is the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph A for that portion of the taxable year during which the individual was a resident plus the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph B for that portion of the taxable year during which the individual was a nonresident and the denominator of which is the individual's entire federal adjusted gross income, as modified by section 5122.
4.Limitation. The credit allowed by this section may not reduce the Maine income tax to less than zero.

Sec. BBBB-17. Application. That section of this Part that amends the Maine Revised Statutes, Title 36, section 111, subsection 1-A applies to tax years beginning on or after January 1, 2008 and to any prior years as specifically provided by the United States Internal Revenue Code. That section of this Part that amends the Maine Revised Statutes, Title 36, section 5124-A, first paragraph applies to tax years beginning on or after January 1, 2008. That section of this Part that enacts Title 36, section 5122, subsection 1, paragraph BB applies to tax years beginning on or after January 1, 2009. Those sections of this Part that enact Title 36, section 5122, subsection 2, paragraph CC and Title 36, section 5200-A, subsection 2, paragraph T apply to tax years beginning on or after January 1, 2010.

Office of the Revisor of Statutes
State House, Room 108
Augusta, ME 04333