(1) A person qualified lessor that purchases and leases eligible equipment to another person engaged primarily in high technology activity for use by that person in that activity may claim a credit in the amount of that person's the lessee's investment credit base to the extent of the credits waived by the lessee, net of any lease payments received for the eligible equipment in the taxable year, subject to the limitations provided by subsection 4; and

(2) A person qualified lessor that leases and subleases eligible equipment to another person engaged primarily in high technology activity for use by that person in that activity may claim a credit in the amount of the lease payments made on the eligible

equipment in each tax year, net of sublease payments received in the taxable year, except that if the eligible equipment is depreciable by that person the sublessee for federal income tax purposes, the credit is based on that person's the sublessee's investment credit base to the extent of the credits waived by the sublessee subject to the limitations provided by subsection 4.

Sec. G-3. Application. Those sections of this Part that enact the Maine Revised Statutes, Title 36, section 5219-M, subsection 1, paragraph E and amend Title 36, section 5219-M, subsection 1-A, paragraph B apply to tax years beginning on or after January 1, 2004.

PART H

Sec. H-1. Pollution Control Structures General Fund account; lapsed balances. Notwithstanding any other provision of law, $120,306 of All Other in fiscal year 2004-05 in the Pollution Control Structures General Fund account in the Department of Agriculture, Food and Rural Resources lapses to the General Fund in fiscal year 2004- 05.

Sec. H-2. Appropriations and allocations. The following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF