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Q. A fraction of any amount previously added back by the | | taxpayer to federal adjusted gross income pursuant to | | subsection 1, paragraph N. |
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| | | (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. |
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| | | (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. |
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| | | 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 |
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| | | Sec. 3. 36 MRSA §5122, sub-§2, ¶T, as amended by PL 2003, c. 705, §12 | | and affected by §14, is further amended to read: |
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| | | 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. |
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| | | 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 | | reduced by any amount claimed as a deduction for federal | | income tax purposes in accordance with the Code, Section | | 162(l) and by the long-term care premiums claimed as an | itemized deduction pursuant to section 5125. |
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