Sec. II-4. 36 MRSA §5200-A, sub-§1, ¶¶Q and R are enacted to read:

Q.__For tax years beginning in 2003, 2004 and 2005, and notwithstanding any other provision of law and to the extent not included in the amount determined for purposes of paragraph I, the amount equal to income from school construction bonds issued in accordance with the Code, Section 148(f)(4)(D)(vii) in excess of $5,000,000 to the extent the amount is not included in federal taxable income; and

R.__For tax years beginning in 2003, 2004 and 2005, and notwithstanding any other provision of law, income from exempt facility bonds used to provide qualified public educational facilities as defined by the Code, Section 142(k), to the extent not included in federal taxable income.

PART JJ

Sec. JJ-1. 36 MRSA §4062, sub-§1-A, as enacted by PL 2001, c. 559, Pt. GG, §3 and affected by §26, is repealed and the following enacted in its place:

1-A.__Federal credit.__"Federal credit" has the following meanings:

A.__For the estates of decedents dying after December 31, 2002 and before January 1, 2005, "federal credit" means the maximum credit for state death taxes determined under the Code, Section 2011 as of December 31, 2002 exclusive of the reduction of the maximum credit contained in the Code, Section 2011(b)(2); the period of limitations under the Code, Section 2011(c); and the termination provision contained in the Code, Section 2011(f).__The adjusted taxable estate is to be determined using the applicable Code as of the date of the decedent's death, except that the state death tax deduction contained in the Code, Section 2058 is to be disregarded.__The unified credit is to be determined under the Code, Section 2010 as of December 31, 2000; and