If Maine Taxable taxable income is: The tax is:

Less than $8,400 2% of the Maine

taxable income

At least $8,400 but $168 plus 4.5%

less than $16,700 of the excess

over $8,400

At least $16,700 but $542 plus 7% of

less than $33,400 the excess over

$16,700

At least $33,400 or more $1,711 plus 8.5%

but less than $200,000 of the excess

over $33,400

$200,000 or more $15,872 plus 10%

of the excess

over $200,000

Sec. C-4. 36 MRSA §5126, as amended by PL 2001, c. 583, §16, is repealed and the following enacted in its place:

§5126.__Personal exemptions

For tax years beginning on or after January 1, 2003, a resident individual is allowed an amount for each exemption that is equal to the amount allowed for an exemption under the Code.

Sec. C-5. 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

A taxpayer is allowed a refundable credit against the taxes otherwise due under this Part equal to 5% 30% of the federal earned income credit for the same taxable year. The credit may not reduce the state income tax to less than zero.

Sec. C-6. Application. This Part applies to tax years beginning on or after January 1, 2003.