It decouples the Maine standard deduction from the expansion in the federal standard deduction that provides "marriage penalty" relief to married taxpayers.

It requires individuals to reduce Maine itemized deductions by any state sales or use taxes deducted in arriving at federal itemized deductions. For purposes of federal itemized deductions, taxpayers may, for income tax years beginning on or after January 1, 2004, elect to deduct either state income taxes or state sales and use taxes. Maine currently requires taxpayers to reduce Maine itemized deductions by any state income taxes claimed in calculating federal itemized deductions.

PART Q

Part Q delays for 2 years the sales tax exemption for broadcast equipment.

PART R

Part R postpones by one year the educational attainment investment credit and the recruitment credit available under the insurance premiums tax and individual and corporate income taxes.

PART S

Part S changes the Maine State Retirement System's unfunded liability to a 23-year amortization schedule.

PART T

Part T places into statute items previously reflected in the preamble to the budget bill.

PART U

Part U authorizes the Department of Conservation, Bureau of Parks and Lands to charge a fee for each burning permit issued, resulting in additional General Fund undedicated revenue in fiscal years 2005-06 and 2006-07.

PART V

Part V does the following.