Sec. 2. 36 MRSA §6651, sub-§4 is enacted to read:

4.__Qualified business property first placed in service after April 1, 2001.__For property first placed in service after April 1, 2001, "qualified business property" means tangible personal property that meets the qualifications of subsection 3, paragraphs A and B and that:

A.__Is part of a manufacturing facility as defined in section 1752, subsection 6-A; or

B.__Is machinery and equipment for research as described in section 1760, subsection 32.

"Qualified business property" also includes all property described in paragraphs A and B that is affixed or attached to a building or other real estate if it is used to further a particular trade or business activity taking place in that building or on that real estate.__"Qualified business property" does not include components or attachments to a building if used primarily to serve the building as a building, regardless of the particular trade or activity taking place in or on the building.__ "Qualified business property" also does not include land improvements if used primarily to further the use of the land as land, regardless of the particular trade or business activities taking place in or on the land.__In the case of construction in progress or inventory parts, the term "used" means intended to be used.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill amends the law relating to reimbursement for taxes paid on certain business property to restrict reimbursement for tangible personal property to property that is part of a manufacturing facility or is machinery and equipment for

research. The bill applies to property first placed in service after April 1, 2001.