Sec. P-9. 36 MRSA §5200-A, sub-§1, ¶S is enacted to read:

S.__An amount equal to the taxpayer's federal deduction relating to income attributable to domestic production activities claimed in accordance with Section 102 of the federal American Jobs Creation Act of 2004, Public Law 108- 357.

Sec. P-10. Application. That section of this Part that amends the Maine Revised Statutes, Title 36, section 111, subsection 1-A applies to tax years beginning on or after January 1, 2004 and to any prior years as specifically provided by the United States Internal Revenue Code. Those sections of this Part that amend Title 36, section 5122, subsection 1, paragraph N and section 5200-A, subsection 1, paragraph N apply to tax years beginning in 2006 and 2007. Those sections of this Part that enact Title 36, section 5122, subsection 1, paragraph X and section 5200-A, subsection 1, paragraph S apply to tax years beginning on or after January 1, 2005. That section of this Part that amends Title 36, section 5125, subsection 3, paragraph A applies to tax years beginning on or after January 1, 2004.

PART Q

Sec. Q-1. 36 MRSA §1760, sub-§31, ¶A, as amended by PL 2003, c. 20, Pt. Z, §1, is further amended to read:

A. For use by the purchaser directly and primarily in the production of tangible personal property intended to be sold or leased ultimately for final use or consumption or in the production of tangible personal property pursuant to a contract with the United States Government or any agency thereof, or, in the case of sales occurring after June 30, 2005 2007, in the generation of radio and television broadcast signals by broadcast stations regulated under 47 Code of Federal Regulations, Part 73. This exemption applies even if the purchaser sells the machinery or equipment and leases it back in a sale and leaseback transaction. This exemption also applies whether the purchaser agrees before or after the purchase of the machinery or equipment to enter into the sale and leaseback transaction and whether the purchaser's use of the machinery or equipment in production commences before or after the sale and leaseback transaction occurs; and