LD 1305
pg. 5
Page 4 of 9 An Act To Encourage Long-term Holding of Maine Timberland and Sustainable Fores... Page 6 of 9
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LR 1758
Item 1

 
Sec. 4. 36 MRSA §5200-A, sub-§2, śL, as amended by PL 2003, c. 20, Pt.
EE, §3, is further amended to read:

 
L. An amount equal to the absolute value of any net
operating loss arising from a tax year beginning or ending
in 2001 for which federal taxable income was increased under
subsection 1, paragraph M and that, pursuant to Section 102
of the federal Job Creation and Worker Assistance Act of
2002, Public Law 107-147, was carried back more than 2 years
to the taxable year for federal income tax purposes, but
only to the extent that:

 
(1) Maine taxable income is not reduced below zero;

 
(2) The taxable year is either within 2 years prior to
the year in which the loss arose or within the
allowable federal period for carry-over of net
operating losses; and

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

 
Sec. 5. 36 MRSA §5200-A, sub-§2, śM, as repealed and replaced by PL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.


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