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

(2) The taxable year is within the allowable federal period for carry-over; and

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

Sec. 10. 36 MRSA §5200-A, sub-§2, ¶J, as amended by PL 2001, c. 559, Pt. GG, §16 and affected by §26, is further amended to read:

J. An amount equal to an income tax refund to the taxpayer by this State or another state of the United States that is included in that taxpayer's federal taxable income for the taxable year under the Code, but only to the extent that:

(1) Maine net income is not reduced below zero; and

(2) The amount to be refunded from this State or another state of the United States has not been previously used as a modification pursuant to this subsection.

If this modification amount results in Maine net income that is less than zero for the taxable year, the excess negative modification amount may be carried back or forward in the same manner as a net operating loss deduction carry-back or carry-forward to a taxable year that is within the allowable federal period for a carry- back or carry-forward carrying forward net operating losses, subject to the above limitations;

Sec. 11. 36 MRSA §5215, sub-§3, ¶A, as amended by PL 1997, c. 761, §3, is further amended to read:

A. With property considered to be qualified investment of at least $5,000,000 for that taxable year with a situs in the State and placed in service by the taxpayer after January 1, 1979; and