(2)__With respect to all other property, for the taxable year immediately following the taxable year during which the property was first placed in service, the fraction allowed by this paragraph is equal to 5% of the amount added back under subsection 1, paragraph N with respect to the property.__For each subsequent taxable year during the recovery period, the fraction is equal to 95% of the amount added back under subsection 1, paragraph N with respect to the property, divided by the number of years in the recovery period minus 2.

In the case of property expensed pursuant to Section 179 of the Code, the term "recovery period" means the recovery period that would have been applicable to the property had Section 179 not been applied.

Sec. 7. 36 MRSA §5203-A, sub-§1, śC, as enacted by PL 1991, c. 528, Pt. N, §15 and affected by §17 and enacted by c. 591, Pt. N, §15 and affected by §17, is amended to read:

C. "Federal tentative minimum tax" means tentative minimum tax as determined pursuant to the Code, Section 55 excluding the alternative minimum tax foreign tax credit and, for tax years beginning in 2003 and 2004, excluding any increase in the individual's claimed exemption amount attributable to Section 106 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27.

Sec. 8. Application. That section of this Act that amends the Maine Revised Statutes, Title 36, section 111, subsection 1-A applies to tax years beginning on or after January 1, 2003 and to any prior years as specifically provided by the United States Internal Revenue Code.