| Be it enacted by the People of the State of Maine as follows: |
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| | Sec. 1. 36 MRSA §198, sub-§4, ¶¶N and O, as enacted by PL 1989, c. 508, | §7, are amended to read: |
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| | Sec. 2. 36 MRSA §198, sub-§4, ¶P is enacted to read: |
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| | Sec. 3. 36 MRSA §5219-Q is enacted to read: |
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| §5219-Q.__Value-added wood products tax credit |
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| | 1.__Credit authorized.__A taxpayer engaged in the production | of value-added wood products is entitled to a credit against the | tax imposed by this Part for each taxable year equal to 5% of the | value added to a wood product by the taxpayer.__For the purposes | of this section, "value-added wood product" means Maine-grown | trees that are processed or changed in this State into a wood | product that has more value than the unprocessed resource.__For | the purposes of this section, "value-added wood product" does not | include firewood, logs, wood chips, wreath tips, Christmas trees, | cut lumber, pulp or nonrecyclable paper.__"Value added to a wood | product" means the difference between the gross receipts to the | taxpayer from the sale of the wood product and the cost to the | taxpayer of the unprocessed resource. |
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| | 2.__Limitation; carry-over.__A credit may not be used to | reduce taxes below zero in any tax year starting before January | 1, 2000.__Any unused credit may be carried over to the following | year or years for a period not to exceed 5 years. |
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| | 3.__Affiliated groups.__If the taxpayer is a corporation that | is part of an affiliated group of corporations eligible for the | credit, the credit must be apportioned among the taxable | corporations in the affiliated group in the same proportion that | the tax liability of each taxable corporation in the affiliated | group bears to the total tax liability of all the taxable | corporations in the affiliated group. |
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| | Sec. 4. Application date. This Act applies to tax years beginning on | or after January 1, 2000. |
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