Sec. AA-4. 36 MRSA §5122, sub-§2, ¶¶R and S are enacted 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.

Sec. AA-5. 36 MRSA §5200-A, sub-§1, ¶N, as amended by PL 2001, c. 700, §5, is further amended to read:

N. For any taxable year beginning in 2002, 2003 or 2004, an amount equal to the net increase in depreciation attributable to a 30% bonus depreciation deduction claimed by the taxpayer pursuant to Section 101 of the federal Job Creation and Worker Assistance Act of 2002, Public Law 107-147 with respect to property placed in service during the taxable year, multiplied by the factor obtained by subtracting from the number 1.0 the conformity factor calculated by the State Tax Assessor under section 112, subsection 12;

Sec. AA-6. 36 MRSA §5200-A, sub-§2, ¶¶L and M, as enacted by PL 2001, c. 559, Pt. GG, §18 and affected by §26, are amended to read:

L. An amount equal to the absolute value of any net operating loss arising from a tax year beginning or ending in 2001 for which federal taxable income was increased under subsection 1, paragraph M and that, pursuant to Section 102 of the federal Job Creation and Work Worker Assistance Act of 2002, Public Law 107-147, was carried back more than 2