LD 598
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LD 598 Title Page An Act To Provide an Income Tax Modification for the Federal Empowerment Zone E... Page 2 of 2
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LR 476
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 36 MRSA §5122, sub-§2, ¶Q, as corrected by RR 2003, c. 1, §38,
is amended to read:

 
Q. A fraction of any amount previously added back by the
taxpayer to federal adjusted gross income pursuant to
subsection 1, paragraph N.

 
(1) With respect to property first placed in service
during taxable years beginning in 2002, the adjustment
under this paragraph is available for each year during
the recovery period, beginning 2 years after the
beginning of the taxable year during which the property
was first placed in service. The fraction is equal to
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.

 
(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; and

 
Sec. 2. 36 MRSA §5122, sub-§2, ¶T, as amended by PL 2003, c. 705, §12
and affected by §14, is further amended to read:

 
T. For income tax years beginning on or after January 1,
2002 and before January 1, 2004, an amount equal to the
total premiums spent for long-term care insurance policies
certified under Title 24-A, section 5075-A as long as the
amount subtracted is reduced by the long-term care premiums
claimed as an itemized deduction pursuant to section 5125.

 
For income tax years beginning on or after January 1, 2004, an
amount equal to the total premiums spent for qualified long-term
care insurance contracts certified under Title 24-A, section
5075-A, as long as the amount subtracted is


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