Sec. 3. 36 MRSA §5122, sub-§2, ķU is enacted to read:

U.__For income tax years beginning on or after January 1, 2006, an amount equal to the total capital gains realized from the sale of a business or the sale of unimproved property as long as at least one taxpayer listed on the income tax return is 50 years of age or older on December 31st of the tax year.__The amount subtracted pursuant to this paragraph must be reduced by any amount claimed as a deduction for federal income tax purposes.__The total aggregate amount subtracted pursuant to this paragraph may not exceed $500,000 per taxpayer.

SUMMARY

This bill exempts from the individual income tax capital gains associated with the sale of a business or unimproved real or personal property if the taxpayer is 50 years of age or older. It also establishes a lifetime exemption limit of $500,000 per taxpayer.