An Act Regarding Conformity with the Federal Jobs and Growth Tax Relief Reconciliation Act of 2003
Maine Legislature, Session 121, LD 1633
Committee: Taxation
Sponsors: STANLEY, LEMOINE
Amends: 36 MRSA §111, 36 MRSA §5122, 36 MRSA §5124-A, 36 MRSA §5200-A, 36 MRSA §5203-A

Legislative Document 
No. 1633 
S.P.589 
In Senate, June 9,2003 
An Act Regarding Conformity with the Federal Jobs and Growth 
Tax Relief Reconciliation Act of 2003 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator STANLEY of Penobscot. (GOVERNOR'S BILL) 
Cosponsored by Representative LEMOINE of Old Orchard Beach. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.36 MRSA §111, sub-§I-A, as amended by PL 2003, c. 255, 
§1 and affected by §2, is further amended to read: 
I-A. 
Code. 
"Code" means the United States Internal Revenue 
Code of 1986 and amendments to that Code as of geeemaeF-61r-JQQ6 
May 28, 2003. 
Sec. 2. 36 MRSA §5122, sub-§I,~, as amended by PL 2001, c. 
714, Pte AA, §2, is repealed and the following enacted in its 
place: 
N. 
With respect to property placed in service during the 
taxable year, 
an 
amount 
e~ual to 
the 
net 
increase 
in 
depreciation or expensing attributable to: 
(1) For taxable years beginning on or after January I, 
2002 
but 
prior 
to 
January 
I, 
2005, 
a 
30% 
bonus 
gepreciation deduction claimed by the taxpayer pursuant 
_to Section 101 of the federal Job Creation and Worker 
Assistance Act of 2002, Public Law 107-147 with respect 
to property placed in service during the taxable year; 
:.a 
(2) For taxable years beginning on or after January I, 
2002 
but 
prior 
to 
January 
I, 
2006, 
a 
50% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 201 of the federal Jobs 
and Growth Tax 
Relief Reconciliation Act of 2003, Public Law 108-27 
with respect to property placed in service during the 
taxable year; or 
(3) For taxable years beginning on or after January I, 
2003 but prior to January 1, 
2006, 
the increase in 
aggregate cost claimed under Section 179 of the Code 
pursuant to Section 202 of the federal Jobs and Growth 
Tax 
Relief Reconciliation Act 
of 
2003, 
Public 
Law 
108-27; 
Sec. 3. 36 MRSA §5122, sub-§2, 1lQ, as repealed and replaced by 
PL 2003, c. 20, Pt. EE, §1, is repealed and the following enacted 
in its place: 
O. 
A fraction of any amount previously added back by the 
taxpayer 
to 
federal 
adjusted 
gross 
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 
Page l-LR2170(1) 
the 
recovery 
period, 
beginning 
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 5'1t. 
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. 
Sec. 4. 36 MRSA §5124-A, as repealed and replaced by PL 2003, 
c. 20, Pt. HH, §1, is amended to read: 
§5124-A. 
Standard deduction; resident 
The standard deduction of a resident individual is equal to 
the standard deduction as determined in accordance with the Code, 
Section 63, except that for tax years beginning in 2003, 2004 and 
2005, the Code, Section 63(c)(2) must be applied as if the basic 
standard deduction is $5,000 in the case of a joint return and a 
surviving spouse and $2,500 in the case of a married individual 
filing a separate return. 
Sec. 5. 36 MRSA §5200-A, sub-§l, 1(N, as amended by PL 2001, c. 
714, Pt. 
'A.'A., 
§5, is repealed and the following enacted in its 
place: 
N. 
With respect to property placed in service during the 
taxable 
year, 
an 
amount 
equal 
to 
the 
net 
increase 
in 
depreciation or expensing attributable to: 
(1) For taxable years beginning on or after January 1, 
2002 
but 
prior 
to 
January 
1, 
2005, 
a 
30~ bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 101 of the federal Job Creation and Worker 
Assistance Act of 2002, Public Law 107-147 with respect 
to property placed in service during the taxable year; 
(2) For taxable years beginning on or after January 1, 
2002 
but prior 
to 
January 
1, 
2006, 
a 
50% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 201 of the federal Jobs 
and Growth Tax 
Relief Reconciliation Act of 2003, Public Law 108-27 
with respect to property placed in service during the 
taxable year; or 
(3) For taxable years beginning on or after January 1, 
2003 but prior to January 1, 
2006, 
the increase in 
aggregate cost claimed under Section 179 of the Code 
pursuant to Section 202 of the federal Jobs and Growth 
Tax 
Relief Reconciliation 
Act 
of 
2003, 
Public 
Law 
108-27; 
Sec. 6. 36 MRSA §S200-A, sub-§2, ,M, as repealed and replaced 
by PL 2003, c. 20, Pt. 
EE, §4, is repealed and the following 
enacted in its place: 
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 
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'l-o 
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. 
Sec. 7. 36 MRSA §5203-A, sub-§l, ,C, as enacted by PL 1991, c. 
528, Pt. N, §15 and affected by §17 and enacted by c. 591, Pt. N, 
§15 and affected by §17, is amended to read: 
C. 
"Federal tentative minimum tax" means tentative minimum 
tax as determined pursuant to the Code, Section 55 excluding 
the alternative minimum tax foreign tax credit and, for tax 
years beginning in 2003 and 2004, excluding any increase in 
the individual' s 
claimed exemption amount attributable to 
Section 106 
of the federal 
Jobs 
and 
Growth 
Tax 
Relief 
Reconciliation Act of 2003, Public Law 108-27. 
Sec. 8. Application. 
That section of this Act that amends the 
Maine Revised Statutes, Title 36, 
section Ill, subsection I-A 
applies to tax years beginning on or after January 1, 2003 and to 
any prior years as specifically provided by the United States 
Internal Revenue Code. 
SUMMARY 
This bill provides that the State' s income tax laws do not 
conform to certain significant federal income tax law changes 
made by the federal Jobs and Growth Tax Relief Reconciliation Act 
of 2003, Public Law 108-27.