Sec. DD-7. Retroactivity. That section of this Part that amends the Maine Revised Statutes, Title 10, section 1100-Y, subsection 7 applies retroactively to January 30, 2003.

PART EE

Sec. EE-1. 36 MRSA §5122, sub-§2, ¶Q, as amended by PL 2001, c. 714, Pt. AA, §3, is repealed and the following enacted in its place:

Q.__A fraction of any amount previously added back to federal adjusted gross income by the taxpayer pursuant to subsection 1, paragraph N.__The fraction is equal to the amount added back under subsection 1, paragraph N for the property, divided by the number of years in the recovery period minus 2.__The adjustment under this paragraph is available for each year during the recovery period, beginning 2 years after the beginning of the taxable year during which the property was first placed in service.

Sec. EE-2. 36 MRSA §5122, sub-§2, ¶¶R and S, as enacted by PL 2001, c. 714, Pt. AA, § 4, are repealed.

Sec. EE-3. 36 MRSA §5200-A, sub-§2, ¶L, as amended by PL 2001, c. 714, Pt. AA, §6, is further 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 Worker Assistance Act of 2002, Public Law 107-147, was carried back more than 2 years to the taxable year for federal income tax purposes, but only to the extent that:

(1) Maine taxable income is not reduced below zero;

(2) The taxable year is either within 2 years prior to the year in which the loss arose or within the allowable federal period for carry-over of net operating losses; and

(3) The amount has not been previously used as a modification pursuant to this subsection; and