M.__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-5. 36 MRSA §5200-A, sub-§2, ¶¶N and O, as enacted by PL 2001, c. 714, Pt. AA, §7, are repealed.

PART FF

Sec. FF-1. 36 MRSA §5218, sub-§§1 and 2, as repealed and replaced by PL 2001, c. 396, §38, are amended to read:

1. Resident taxpayer. A resident individual is allowed a credit against the tax otherwise due under this Part in the amount of 25% of the federal tax credit allowable for child and dependent care expenses in the same tax year, except that for tax years beginning in 2003, 2004 and 2005, the applicable percentage is 21.5% instead of 25%.

2. Nonresident or part-year resident taxpayer. A nonresident or part-year resident individual is allowed a credit against the tax otherwise due under this Part in the amount of 25% of the federal tax credit allowable for child and dependent care expenses multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the nonresident's entire federal adjusted gross income, as modified by section 5122, except that for tax years beginning in 2003, 2004 and 2005, the applicable percentage is 21.5% instead of 25%.

PART GG

Sec. GG-1. 36 MRSA §5219-S, as enacted by PL 1999, c. 731, Pt. V, §1 and affected by §2, is amended to read:

§5219-S. Earned income credit