Sec. 1. 36 MRSA §4062, sub-§1-A, ķA, as amended by PL 2003, c. 673, Pt. D, §1, is further amended to read:

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 section of the 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

Sec. 2. 36 MRSA §4062, sub-§1-A, ķA-1 is enacted to read:

A-1.__For the estates of decedents dying on or after 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 section of the 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, 2003; and

Sec. 3. 36 MRSA §4063, sub-§2, as amended by PL 2003, c. 673, Pt. D, §3, is further amended to read:

2. Values. All property values under subsection 1, paragraphs A and B are as finally determined for federal estate tax purposes, except that for estates of decedents dying after December 31, 2002 and before January 1, 2005 that do not incur a federal estate tax, all property values under subsection 1, paragraphs A and B are as finally determined by the assessor in accordance with the Code as if the estate had incurred a federal estate tax.