Sec. 1. 36 MRSA §111, sub-§1-A, as amended by PL 2003, c. 255, §1 and affected by §2, is further amended to read:

1-A. Code. "Code" means the United States Internal Revenue Code of 1986 and amendments to that Code as of December 31, 2002 May 28, 2003.

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 AA, §2, is repealed and the following enacted in its place:

N.__With respect to property placed in service during the taxable year, an amount equal to the net increase in depreciation or expensing attributable to:

(1) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2005, 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;

(2) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 201 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 with respect to property placed in service during the taxable year; or

(3) For taxable years beginning on or after January 1, 2003 but prior to January 1, 2006, the increase in aggregate cost claimed under Section 179 of the Code pursuant to Section 202 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108- 27;

Sec. 3. 36 MRSA §5122, sub-§2, ¶Q, as repealed and replaced by PL 2003, c. 20, Pt. EE, §1, is repealed and the following enacted in its place:

Q.__A fraction of any amount previously added back by the taxpayer to federal adjusted gross income pursuant to subsection 1, paragraph N.

(1)__With respect to property first placed in service during taxable years beginning in 2002, the adjustment under this paragraph is available for each year during