Sec. 1. 36 MRSA §5122, sub-§2, ¶¶R and S, as enacted by PL 2001, c. 714, Pt. AA, §4, are amended to read:

R. For tax years beginning in 2005, 2006 or 2007, an amount equal to 1/3 of any amount added back to federal adjusted gross income by the taxpayer for the 2003 tax year pursuant to subsection 1, paragraph N, except with respect to 3-year property, in which case this paragraph does not apply to 2006 or 2007 tax years and the amount to be subtracted pursuant to this paragraph in the 2005 tax year is an amount equal to the amount added back pursuant to subsection 1, paragraph N for tax years beginning in 2003; and

S. For tax years beginning in 2006, 2007 or 2008, an amount equal to 1/3 of any amount added back to federal adjusted gross income by the taxpayer for the 2004 tax year pursuant to subsection 1, paragraph N, except with respect to 3-year property, in which case this paragraph does not apply to 2007 or 2008 tax years and the amount to be subtracted pursuant to this paragraph in the 2006 tax year is in an amount equal to the amount added back pursuant to subsection 1, paragraph N for tax years beginning in 2004.; and

Sec. 2. 36 MRSA §5122, sub-§2, ¶T is enacted to read:

T.__To the extent included in federal adjusted gross income, for tax years beginning on or after January 1, 2003, the amount of income received from the sale of development rights on farmland if the development rights are transferred in accordance with the laws governing conservation easements, Title 33, chapter 7, subchapter 8- A.__For the purposes of this paragraph, "farmland" has the same meaning as defined in section 1102, subsection 4.

SUMMARY

This bill allows a farmer to reduce the farmer's adjusted gross income for tax purposes by the amount received for sale of development rights under the Land for Maine's Future program.