LD 1165
pg. 4
Page 3 of 5 An Act To Encourage the Preservation of Affordable Housing Page 5 of 5
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LR 1927
Item 1

 
(3) The amount has not been previously used as a
modification pursuant to this subsection; and

 
Sec. 10. 36 MRSA §5200-A, sub-§2, ¶M, as repealed and replaced by PL
2003, c. 479, §6, is amended to read:

 
M. A fraction of any amount previously added back by the
taxpayer to federal taxable 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. 11. 36 MRSA §5200-A, sub-§2, ¶P is enacted to read:

 
P.__For income tax years beginning on or after January 1,
2006, an amount equal to the total capital gains or
depreciation recapture realized from the sale of multifamily
affordable housing property.__The amount subtracted pursuant
to this paragraph must be reduced by any amount claimed as a
deduction for federal income tax purposes.


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