| | | 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%. |
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| | | 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: |
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| | | §5219-S. Earned income credit |
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| | | A taxpayer is allowed a credit against the taxes otherwise due | | under this Part equal to 5% of the federal earned income credit | | for the same taxable year, except that for tax years beginning in | | 2003, 2004 and 2005, the applicable percentage is 4.92% instead | | of 5%. The credit may not reduce the state income tax to less | | than zero. |
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| | | Sec. HH-1. 36 MRSA §5124-A, as repealed and replaced by PL 1989, c. | | 495, §§2 and 9 and amended by c. 596, Pt. J, §7, is repealed and | | the following enacted in its place: |
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| | | §5124-A.__Standard deduction; resident |
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| | | The standard deduction of a resident individual is equal to | | the standard deduction as determined in accordance with the Code, | | Section 63, except that for tax years beginning in 2005, the | | Code, Section 63(c)(2) must be applied as if the basic standard | | deduction is $5,000 in the case of a joint return and a surviving | | spouse and $2,500 in the case of a married individual filing a | | separate return. |
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| | | Sec. II-1. 36 MRSA §5122, sub-§1, ¶¶O and P, as enacted by PL 2001, c. | | 700, §4 and affected by §10, are amended to read: |
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| | | O. The amount of the contribution to a qualified | | scholarship organization that is included in the credit base | | of the educational attainment investment tax credit under | | section 5219-U to the extent that the contribution has been | used to adjust federal adjusted gross income; and |
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