Sec. 1. 36 MRSA §5122, sub-§2, ¶A, as repealed and replaced by PL 1985, c. 737, Pt. A, §102, is amended to read:

A. Interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission or instrumentality of the United States or on a seller-sponsored loan, as defined by Title 10, chapter 110, to the extent includable in gross income for federal income tax purposes, but exempt from state income taxes under the laws of the United States, provided that the amount subtracted shall be is decreased by any expenses incurred in the production of the interest or dividend income to the extent that these expenses, including amortizable bond premiums, are deductible in determining federal adjusted gross income;

Sec. 2. 36 MRSA §5122, sub-§2, ¶D, as amended by PL 1989, c. 508, §16 and c. 556, Pt. B, §8, is repealed.

Sec. 3. 36 MRSA §5200-A, sub-§2, ¶C, as amended by PL 1983, c. 855, §21, is further amended to read:

C. An amount equal to the taxpayer's federal new jobs credit or work opportunity credit as determined under the laws of the United States;

Sec. 4. 36 MRSA §5200-A, sub-§2, ¶E, as amended by PL 1987, c. 841, §4, is repealed.

Sec. 5. 36 MRSA §5217, sub-§2, ¶C, as enacted by PL 1999, c. 401, Pt. NNN, §3 and affected by §§8 and 9, is amended to read:

C. "Quality child care services" has the meaning set forth in section 5219-Q, subsection 1.

Sec. 6. 36 MRSA §5217, sub-§4, as enacted by PL 1999, c. 401, Pt. NNN, §4 and affected by §§8 and 9, is amended to read:

4. Quality child care. The credit allowed under subsection 1 doubles in amount if the day care service provided by the taxpayer constitutes quality child care services.

Sec. 7. 36 MRSA §5218, as amended by PL 1999, c. 401, Pt. NNN, §5 and affected by §§8 and 9 and as repealed and replaced by PL 1999, c. 521, Pt. B, §6 and affected by §11, is repealed and the following enacting in its place:

§5218.__Income tax credit for child care expenses