$16,700

At least $33,400 or more $1,711 plus 8.5%

but less than $200,000 of the excess

over $33,400

$200,000 or more $15,872 plus 10%

of the excess

over $200,000

Sec. C-4. 36 MRSA §5126, as amended by PL 2001, c. 583, §16, is repealed and the following enacted in its place:

§5126.__Personal exemptions

For tax years beginning on or after January 1, 2005, a resident individual is allowed an amount for each exemption that is equal to the amount allowed for an exemption under the Code.

Sec. C-5. 36 MRSA §5219-S, as amended by PL 2003, c. 20, Pt. GG, §1 is further amended to read:

§5219-S. Earned income credit

A taxpayer is allowed a refundable credit against the taxes otherwise due under this Part equal to 5% 30% of the federal earned income credit for the same taxable year, except that for tax years beginning in 2003, 2004 and 2005, the applicable percentage is 4.92% instead of 5%. The credit may not reduce the state income tax to less than zero.

Sec. C-6. Application. This Part applies to tax years beginning on or after January 1, 2005.

PART D

Sec. D-1. 36 MRSA §1752, sub-§14, ¶B, as amended by PL 2003, c. 673, Pt. V, §16 and affected by §29, is further amended to read:

B. "Sale price" does not include:

(1) Discounts allowed and taken on sales;

(2) Allowances in cash or by credit made upon the return of merchandise pursuant to warranty;