| Be it enacted by the People of the State of Maine as follows: |
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| | Sec. 1. 36 MRSA §5122, sub-§2, ¶K, as amended by PL 1999, c. 521, Pt. | C, §5 and affected by §9, is further amended to read: |
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| K. For income tax years beginning on or after January 1, | 1997, all items of income, gain, interest, dividends, | royalties and other income 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. A subtraction may not be made under this paragraph | for: |
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| (1) Income of the taxpayer earned on interest-bearing | or similar accounts of the taxpayer at a financial | institution as a customer of that financial | institution; |
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| (2) Any dividends or other distributions with respect | to a taxpayer's ownership interest in a financial | institution; and |
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| (3) Any gain recognized on the disposition by the | taxpayer of an ownership interest in a financial | institution; and |
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| | Sec. 2. 36 MRSA §5122, sub-§2, ¶L, as enacted by PL 1999, c. 521, Pt. | C, §6 and affected by §9, is amended to read: |
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| L. For income tax years beginning on or after January 1, | 2000, an amount equal to the total premiums spent for | qualified long-term care insurance contracts as defined in | the Code, Section 7702B(b), as long as the amount subtracted | is reduced by the long-term care premiums claimed as an | itemized deduction pursuant to Section section 5125.; and |
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| | Sec. 3. 36 MRSA §5122, sub-§2, ¶M is enacted to read: |
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| M.__An amount, for each recipient of benefits under an | employee retirement plan, that is the lesser of: |
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| (1)__Ten thousand dollars reduced by the total amount | of social security benefits and railroad retirement | benefits paid by the United States, but not less than | $0; or |
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| (2)__The aggregate of benefits received under employee |
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