An Act COMMI TTEE AMENDMENT A" to H. P . To Encourage the Preservation of Affordable Housing
Maine Legislature, Session 122, LD 1165
Committee Amendment CA_A-SA_A_S664 (Senate)
Amends: 30-A MRSA §4722, 36 MRSA §4641-B, 36 MRSA §5122, 36 MRSA §5200-A

SENATE 
AMENDMENT 
L.D. 1165, Bill, 
to 
"An Act 
COMMI TTEE 
AMENDMENT 
"A" to H. P . 
To Encourage the Preservation of 
Affordable Housing" 
Amend the amendment by striking out all of sections 1 to 10 
and inserting in their place the following: 
'Sec. 1. 30-A MRS A §4722, sub-§I, ty, as amended by PL 2005, 
c. 261, §2, is further amended to read: 
Y. 
Expand access to housing for young professionals and 
young 
families. 
The 
Maine 
State Housing Authority shall 
develop recommendations to create or modify programs with 
the 
goal 
of 
expanding 
access 
to 
housing 
for 
young 
professionals and young families. 
The Maine State Housing 
Authority shall specifically consider strategies to assist 
renters and first-time home buyers who are under 35 years of 
age and explore options for 
linking assistance levels to 
student loan obligations. 
The Maine State Housing Authority 
shall collaborate with the Maine Community College System, 
vocational high schools and 
community action programs 
to 
encourage the development of affordable housing in high-cost 
housing areas of the State. 
(1) 
The Maine State Housing Authority shall report its 
findings and recommendations regarding expanded access 
to housing for young professionals and young families 
to the Future for Youth in Maine State Work Action 
Tactics Team established in Title 5, section l3161 and 
SENATE AMENDMENT 
6,fO· 
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SENATE AMENDMENT 
L.D. 1165 
to COMMITTEE 
AMENDMENT 
"A" to H.P. 
808, 
to the 
joint standing committee 
of the 
having jurisdiction over housing matters no 
January 15, 2005 and annually thereafter; aBa 
Legislature 
later than 
Sec. 2. 30-A MRSA §4722, sub-§l, 1fZ, as enacted by PL 2005, c. 
261, §3, is amended to read: 
z. 
Condition approval of funding of a housing project upon 
an applicant's compliance with municipal health, safety and 
sanitation standards. 
The Maine State Housing Authority may 
condi tion approval of funding for a housing project upon a 
municipality's 
representation 
that 
the 
applicant, 
an 
affiliate of the applicant or any owner controlled by the 
applicant 
has 
no 
record 
of 
a 
material 
municipal 
code 
violation of health, safety or sanitation standardsT; and 
Sec.3. 30-A MRSA §4722, sub-§l, 1fAA is enacted to read: 
AA. 
Certify transfers of multifamily affordable housing 
property that qualify for 
the deduction under Title 36, 
section 5122, subsection 2, paragraph W or Title 36, section 
5200-A, 
subsection 
2, 
paragraph 
O. 
The 
affordability 
restrictions 
that 
apply 
under 
this 
paragraph 
must 
be 
contained in a 
declaration signed by the transferee and 
recorded in the appropriate registry of deeds at the time of 
the sale or transfer. 
(1) 
For the purposes of this paragraph, "multifamily 
affordable housing property" means a decent, safe and 
sanitary dwelling, apartment building or other living 
accommodation that includes at least 
units, 
that 
meets 
at least 
one 
of 
the 
following 
affordability 
restrictions 
and 
for 
which 
those 
affordability 
restrictions, as applicable, expire in 10 years or less 
from the date of the sale or transfer of the property: 
(a) 
At least 20°" of the units have restricted 
rents affordable to households earning 
no 
more 
than 80
" 
of the area median income as determined 
by the Uriited States Department of Housing and 
Urban Development; 
(b) 
The property is assisted by the United States 
Department of Housing and Urban Development, the 
United States 
Department of 
Agriculture or 
the 
Maine State Housing Authority; or 
(c) 
The property qualifies for low-income housing 
credits under the United States Internal Revenue 
Code of 1986, Section 42. 
SENATE AMENDMENT 
.,flo, 
,~ 
SENATE AMENDMENT "A" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
808, 
L.D. 1165 
(2) 
For the purposes of this paragraph, property does 
not qualify as multifamily affordable housing property 
unless: 
(a) 
The 
transferee 
agrees 
to 
maintain 
the 
property 
as 
multifamily 
affordable 
housing 
property for 
an 
additional 
years 
from 
the 
scheduled expiration~ 
(b) 
If the existing federal, 
state or 
other 
assistance 
is 
not 
available 
to 
maintain 
the 
property 
as 
multifamily 
affordable 
housing 
property, the transferee agrees to ensure that 1/2 
of the units are affordable to persons at 60"0 of 
the area median income as determined by the United 
States Department of Housing and Urban Development 
for 
years 
from 
the 
expiration 
of 
the 
then-existing affordability restrictions; or 
(c) 
The 
transferee 
agrees 
to 
an 
alternative 
affordability 
agreement 
approved 
by 
the 
Maine 
State Housing Authority. 
Sec. 4. 36 MRSA §4641-B, sub-§4, as amended by PL 2005, c. 12, 
Pt. H, §l, is further amended to read: 
4. 
Distribution of State's share of proceeds. 
The State 
Tax Assessor shall pay all net receipts received pursuant to this 
section to the Treasurer of State, and shall at the same time 
provide the Treasurer of State with documentation showing the 
amount 
of 
revenues 
derived 
from 
the 
tax 
imposed 
by 
section 
4641-A, subsection 1 and the amount of revenues derived from the 
tax imposed by section 4641-A, subsection 2. 
The Treasurer of 
State shall credit 1/2 of the revenues derived 
from the tax 
imposed by section 4641-A, subsection 1 to the General Fund and 
shall monthly pay the remaining 1/2 of such revenues to the Maine 
State Housing Authority, which shall deposit the funds in the 
Housing Opportunities 
for 
Maine 
Fund 
created in Title 
30-A, 
section 4853, except that in fiscal year 2003-04, 
fiscal year 
2004-05 r 
and 
fiscal 
year 
2005-06 
aB9--fisea±--yea£--JGGe-G1, 
$7,500,000 
of 
the 
remaining 
1/2 
of 
those 
revenues 
must 
be 
transferred to the General Fund before any payments are made to 
the Maine State Housing Authority and in fiscal year 2006-07, 
$7,687,067 
of 
the 
remaining 
1/2 
of 
those 
revenues 
must 
be 
transferred to the General Fund before any payments are made to 
the Maine State Housing Authority. 
The Treasurer of State shall 
credit to the General Fund all of the revenues derived from the 
tax imposed by section 4641-A, subsection 2. 
SENATE AMENDMENT 
.,to-
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SENATE 
AMENDMENT "A" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
808, 
L.D. 1165 
Sec. 5. 36 MRSA §5122, sub-§2, ~U, as amended by PL 2005, c. 
519, Pt. LLL, §2, is further amended to read: 
U. 
For income tax years beginning on or after January l, 
2015, 
the gain attributable to the sale of sustainably 
managed, 
eligible 
timberlands 
as 
calculated 
in 
this 
paragraph. 
(1) 
As 
used in this paragraph, 
unless the context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
(a) 
"Commercial 
harvesting" 
harvested" means the harvesting 
that have commercial value. 
or 
"commercially 
of forest products 
(b) 
"Eligible timberlands" means land of at least 
acres located in the State and used primarily 
for 
the 
growth 
of 
trees 
to 
be 
commercially 
harvested. 
Land that would otherwise be included 
within this definition may not be excluded because 
of: 
(i) 
Use 
of the land for multiple public 
recreation activities; 
(ii) 
Statutory or governmental restrictions 
that prevent commercial harvesting of trees 
or require a primary use of the land other 
than commercial harvesting; 
(iii) 
Deed 
restrictions, 
restrictive 
covenants 
or 
organizational 
charters 
that 
prevent 
commercial 
harvesting of trees 
or 
require 
a 
primary 
~se of 
land other 
than 
commercial harvesting and that were effective 
prior to January 1, 1982; 
or 
(iv) 
Past 
or 
present 
multiple 
use 
for 
mineral exploration. 
(c) 
"Forest products that have commercial value" 
means 
logs, 
pulpwood, 
veneer, 
bolt wood, 
wood 
chips, stud wood, 
poles, pilings, biomass, 
fuel 
wood, 
Christmas 
trees, 
maple 
syrup, 
nursery 
products 
used for ornamental purposes, 
wreaths, 
bough material or cones or other seed products. 
(d) 
"Sustainably managed" means: 
SENATE AMENDMENT 
.,"0. 
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SENATE 
AMENDMENT 
L.D. 1165 
(2) 
To 
federal 
must be 
to COMMITTEE 
AMENDMENT 
"A" to H.P. 
808, 
(i) 
A forest management and harvest plan, as 
defined in section 573, subsection 3-A, has 
been prepared for 
the eligible timberlands 
and has been in effect for the entire time 
period used to 
compute 
the 
amount of 
the 
subtraction 
modification 
under 
this 
paragraph; and 
(ii) 
The 
taxpayer has 
received 
statement from a licensed forester 
that, 
as 
of 
the 
time 
of 
the 
eligible 
timberlands 
have 
been 
accordance with the plan under 
(i) during that period. 
a 
written 
certifying 
sale, 
the 
managed 
in 
subdivision 
the extent they are included in the taxpayer's 
adjusted gross income, 
the following amounts 
subtracted from federal adjusted gross income: 
(a) For eligible timberlands held by the taxpayer 
for at least a 10-year period 
beginning on or 
after January 1, 
2005 but less than an II-year 
period beginning on or after January 1, 2005, IllS 
of the gain recognized on the sale of the eligible 
timberlands; 
(b) For eligible timberlands held by the taxpayer 
for at least an II-year period 
beginning on or 
after January 1, 
2005 but less than a 
12-year 
period beginning on or after January 1, 2005, 2/15 
of the gain recognized on the sale of the eligible 
timberlands; 
(c) 
For eligible timberlands held by the taxpayer 
for at least a 12-year period 
beginning on or 
after January 1, 
2005 
but less than 
a 
13-year 
period beginning on or after January L 
2005, 1/5 
of the gain recognized on the sale of the eligible 
timberlands; 
(d) 
For eligible timberlands held by the taxpayer 
for at least a 13-year period 
beginning on or 
after January 1, 
2005 
but less than a 
14-year 
period beginning on or after January 1, 2005, 4/15 
of the gain recognized on the sale of the eligible 
timberlands; 
(e) 
For eligible timberlands held by the taxpayer 
for at least a 14-year period 
beginning on or 
after January 1, 
2005 
but less than a 
IS-year 
SENATE AMENDMENT 
~~< 
... 
SENATE AMENDMENT 
L.D. 1165 
to COMMITTEE 
AMENDMENT 
"A" to H.P. 
808, 
period beginning on or after January 1, 2005, 1/3 
of the gain recognized on the sale of the eligible 
timberlands; 
(f) 
For eligible timberlands held by the taxpayer 
for at least a 
IS-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
16-year 
period beginning on or after January 1, 2005, 2/5 
of the gain recognized on the sale of the eligible 
timberlands; 
(g) 
For eligible timberlands held by the taxpayer 
for at least a 
16-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
17-year 
period beginning on or after January 1, 2005, 7/15 
of the gain recognized on the sale of the eligible 
timberlands; 
(h) 
For eligible timberlands held by the taxpayer 
for at least a 
-year period 
beginning on or 
after January 1, 
2005 but less than an 18-year 
period beginning on or after January 1, 2005, 8/15 
of the gain recognized on the sale of the eligible 
timberlands; 
(i) 
For eligible timberlands held by the taxpayer 
for at least an 18-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
19-year 
period beginning on or after January L 
2005, 3/5 
of the gain recognized on the sale of the eligible 
timberlands; 
(j) 
For eligible timberlands held by the taxpayer 
for at least a 
19-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
20-year 
period beginning on or after January L 
2005, 213 
of the gain recognized on the sale of the eligible 
timberlands; 
(k) 
For eligible timberlands held by the taxpayer 
for at least a 
20-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
21-year 
period beginning on or after January 1, 
2005, 
11/15 of the gain recognized on the sale of the 
eligible timberlands; 
(1) 
For eligible timberlands held by the taxpayer 
for at least a 
21-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
22-year 
period beginning on or after January 1, 2005, 4/5 
SENATE AMENDMENT 
tr~ 
~~ 
SENATE 
AMENDMENT "A" to COMMITTEE 
AMENDMENT 
"A" to H. P. 
808, 
L.D. 1165 
of the gain recognized on the sale of the eligible 
timberlands; 
(m) 
For eligible timberlands held by the taxpayer 
for at least a 
22-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
23-year 
period 
beginning on or after January 
1, 
2005, 
13/15 of the gain recognized on the sale of the 
eligible timberlands; 
(n) 
For eligible timberlands held by the taxpayer 
for at least a 
23-year period 
beginning on or 
after January 1, 
2005 but less than a 
24-year 
period beginning on or after January 
1, 
2005, 
14/15 of the gain recognized on the sale of the 
eligible timberlands; or 
(0) 
For eligible timberlands held by the taxpayer 
for at least a 
24-year period 
beginning on or 
after January L 
2005, all of the gain recognized 
on the sale of the eligible timberlands. 
(3) 
Taxpayers claiming this credit must attach a sworn 
statement from a forester licensed pursuant to Title 
32, 
chapter 
that the 
timberlands 
for 
which the 
credi t is claimed have been managed sustainably. 
For 
the purposes of this subparagraph, "sustainably" means 
that the timberlands for which the credit is claimed 
have been managed to protect soil productivity and to 
maintain 
or 
improve 
stand 
productivity 
and 
timber 
quality; known occurrences of threatened or endangered 
species 
and 
rare 
or 
exemplary natural 
communities; 
significant 
wildlife habitat 
and essential wildlife 
habitat; and water quality, wetlands and riparian zones. 
Upon request of the State Tax Assessor, the Director of 
the 
Bureau 
of 
Forestry 
within 
the 
Department 
of 
Conservation 
may 
provide 
assistance 
in 
determining 
whether timberlands for which the credit is claimed 
have 
been 
managed 
sustainably. 
When 
assistance 
is 
requested under this subparagraph, the director or the 
director's 
designee 
may 
enter 
and 
examlne 
the 
timberlands for the purpose of determining whether the 
timberlands have been managed sustainably. 
In the case of 
timberlands 
owned by an entity that 
1S 
treated as a pass-through entity for income tax purposes, 
the land must be treated as eligible timberland if ownership 
and use of the land by the pass-through entity satisfies the 
requirements 
of 
this 
paragraph. 
If 
the 
owner 
of 
the 
SENATE AMENDMENT 
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~ 
SENATE 
AMENDMENT "A" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
808, 
L.D. 1165 
eligible timberlands is an S corporation, the taxpayer must 
subtract the owner's pro rata share of the gain. 
If the 
owner 
of 
the 
timberlands 
is 
a 
partnership 
or 
limited 
liability company taxed as a partnership, the taxpayer must 
subtract the 
taxpayer's 
distributive share of 
the 
gain, 
subject 
to 
the 
percentage 
limitations 
provided 
in 
this 
paragraph. 
This modification may not reduce Maine taxable income to 
less than zero. 
To the extent this modification results in 
Maine taxable income that is less than zero for the taxable 
year, the excess negative modification amount may be carried 
forward and applied as a subtraction modification for up to 
taxable years. 
The entire amount of the excess negative 
modification must be carried to the earliest of the taxable 
years to which, by reason of this subsection, the negative 
modification may be carried and then to each of the other 
taxable years to the extent the unused negative modification 
is not used for a prior taxable year. 
Earlier carry-forward 
modifications 
must 
be 
used 
before 
newer 
modifications 
generated in later years; aBe 
Sec. 6. 36 MRSA §5122, sub-§2, tv, as enacted by PL 2005, c. 
519, Pt. LLL, §3 and affected by §4, is amended to read: 
V. 
The portion of contributions to 
a qualified tuition 
program established under Section 529 of the Code up to $250 
per 
designated beneficiary. 
This 
deduction 
may 
not 
be 
claimed 
on 
returns 
when 
federal 
adjusted 
gross 
income 
exceeds $100,000 for returns with a filing status of single 
or married filing separately or $200,000 for returns with a 
filing status of married joint or head of householdT; and 
Sec. 7. 36 MRSA §5122, sub-§2, 1fW is enacted to read: 
w. 
For income tax years beginning on or after January L 
2006, 
to the extent included in federal 
adjusted gross 
income and not otherwise removed from Maine taxable income, 
an amount egual to the total of capital gains and ordinary 
income resulting from depreciation recapture determined in 
accordance with the Code, 
Sections 1245 and 1250 that is 
realized upon the sale of property certified as multifamily 
affordable 
housing property by 
the 
Maine 
State 
Housing 
Authority 
in 
accordance 
with Title 
30-A, 
section 
4722, 
subsection 1, paragraph AA. 
Sec. 8. 36 MRSA §5200-A, sub-§2, 1fM, as amended by PL 2005, c. 
416, §5, is further amended to read: 
SENATE AMENDMENT 
· 
~~. 
~!ti 
SENATE 
AMENDMENT 
L.D. 1165 
"A" 
to COMMITTEE 
AMENDMENT 
" A" 
to H.P. 
808, 
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 L 
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°1> 
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°1> 
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; aaa 
Sec. 9. 36 MRSA §S200-A, sub-§2, ~P, as enacted by PL 2005, c. 
416, §6, is amended to read: 
P. 
For income tax years beginning on or after January 1, 
2015, 
the gain attributable to 
the sale of sustainably 
managed, eligible timberlands as calculated pursuant to this 
paragraph. 
(1) 
As 
used in this paragraph, 
unless the context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
(a) 
"Commercial 
harvesting" 
harvested" means the harvesting 
that have commercial value. 
or 
"commercially 
of forest products 
(b) 
"Eligible timberlands" means land of at least 
acres located in the State and used primarily 
for 
the 
growth 
of 
trees 
to 
be 
commercially 
SENATE AMENDMENT 
~ 
~ 
~, 
SENATE 
AMENDMENT 
L.D. 1165 
to COMMITTEE 
AMENDMENT 
flA" 
to H.P. 
808, 
harvested. 
Land that would otherwise be included 
within this definition may not be excluded because 
of: 
(i) 
Use 
of the 
land for multiple public 
recreation activities; 
(ii) 
Statutory or governmental restrictions 
that prevent commercial harvesting of trees 
or require a primary use of the land other 
than commercial harvesting; 
(iii) 
Deed 
restrictions, 
restrictive 
covenants 
or 
organizational 
charters 
that 
prevent 
commercial 
harvesting of 
trees 
or 
require 
a 
primary use of 
land other than 
commercial harvesting and that were effective 
prior to January 1, 1982; or 
(iv) 
Past 
or 
present 
multiple 
use 
for 
mineral exploration. 
(c) 
"Forest products that have commercial value" 
means 
logs, 
pulpwood, 
veneer, 
bolt 
wood, 
wood 
chips, stud wood, 
poles, pilings, biomass, 
fuel 
wood, 
Christmas 
trees, 
maple 
syrup, 
nursery 
products 
used for 
ornamental 
purposes, 
wreaths, 
bough material or cones or other seed products. 
(d) 
"Sustainably managed" means: 
(i) 
A forest,management and harvest plan, as 
defined in section 573, 
subsection 3-A, has 
been prepared for 
the eligible timberlands 
and has been in effect for the entire time 
period used to 
compute 
the 
amount 
of 
the 
subtraction 
modification 
under 
this 
paragraph; and 
(ii) 
The 
taxpayer has 
received 
statement from a licensed forester 
that, 
as 
of 
the 
time 
of 
the 
eligible 
timberlands 
have 
been 
accordance with the plan under 
(i) during that period. 
a 
written 
certifying 
sale, 
the 
managed 
in 
subdivision 
(2) 
To the extent included in the taxpayer' s taxable 
income under the laws of the United States, the taxable 
income of the taxpayer under the laws of the United 
States must be decreased by: 
SENATE AMENDMENT 
:;re.. 
~~'~ 
SENATE AMENDMENT 'A" to COMMITTEE 
AMENDMENT 
"A" to H. P. 
808, 
L.D. 1165 
(a) For eligible timberlands held by the taxpayer 
for at least a 10-year period 
beginning on or 
after January 1, 
2005 but less than an II-year 
period beginning on or after January 1, 2005, IllS 
of the gain recognized on the sale of the eligible 
timberlands; 
(b) For eligible timberlands held by the taxpayer 
for at least an II-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
12-year 
period beginning on or after January 1, 2005, 2/15 
of the gain recognized on the sale of the eligible 
timberlands; 
(c) 
For eligible timberlands held by the taxpayer 
for at least a 12-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
13-year 
period beginning on or after January 1, 2005, 115 
of the gain recognized on the sale of the eligible 
timberlands; 
(d) 
For eligible timberlands held by the taxpayer 
for at least a 13-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
l4-year 
period beginning on or after January 1, 2005, 4/15 
of the gain recognized on the sale of the eligible 
timberlands; 
(e) 
For eligible timberlands held by the taxpayer 
for at least a 14-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
15-year 
period beginning on or after January 1, 2005, 113 
of the gain recognized on the sale of the eligible 
timberlands; 
(f) 
For eligible timberlands held by the taxpayer 
for at least a IS-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
l6-year 
period beginning on or after January 1, 2005, 2/5 
of the gain recognized on the sale of the eligible 
timberlands; 
(g) 
For eligible timberlands held by the taxpayer 
for at least a 
l6-year period 
beginning on or 
after January 1, 
2005 but less than 
a 
17-year 
period beginning on or after January 1, 2005, 7/15 
of the gain recognized on the sale of the eligible 
timberlands; 
SENATE AMENDMENT 
~" 
~ 
SENATE 
AMENDMENT "4" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
808, 
L.D. 1165 
(h) 
For eligible timberlands held by the taxpayer 
for at least a 
-year period 
beginning on or 
after January 1, 
2005 but less than an 18-year 
period beginning on or after January 1, 2005, 8/15 
of the gain recognized on the sale of the eligible 
timberlands; 
(i) 
For eligible timberlands held by the taxpayer 
for at least an 18-year period 
beginning on or 
after January 1, 
2005 but less than a 
19-year 
period beginning on or after January L 
2005, 3/5 
of the gain recognized on the sale of the eligible 
timberlands; 
(j) 
For eligible timberlands held by the taxpayer 
for at least a 
19-year period 
beginning on or 
after January 1, 
2005 but less than a 
20-year 
period beginning on or after January 1, 2005, 2/3 
of the gain recognized on the sale of the eligible 
timberlands; 
(k) 
For eligible timberlands held by the taxpayer 
for at least a 
20-year period 
beginning on or 
after January 1, 
2005 but less than a 
21-year 
period beginning on or after January 1, 
2005, 
11/15 of the gain recognized on the sale of the 
eligible timberlands; 
(1) 
For eligible timberlands held by the taxpayer 
for at least a 
21-year period 
beginning on or 
after January 1, 
2005 but less than a 
22-year 
period beginning on or after January L 
2005, 4/5 
of the gain recognized on the sale of the eligible 
timberlands; 
(m) 
For eligible timberlands held by the taxpayer 
for at least a 
22-year period 
beginning on or 
after January 1, 
2005 but less than a 
23-year 
period beginning 
on or after January 1, 
2005, 
13/15 of the gain recognized on the sale of the 
eligible timberlands; 
(n) 
For eligible timberlands held by the taxpayer 
for at least a 
23-year period 
beginning on or 
after January 1, 
2005 but less than a 
24-year 
period beginning 
on or after January 1, 
2005, 
14/15 of the gain recognized on the sale of the 
eligible timberlands; or 
SENATE AMENDMENT 
(t.'. 
~ 
SENATE 
AMENDMENT 'ft" to COMMITTEE 
A.MENDMENT 
"A" to H.P. 
808, 
L.D. 1165 
(0) 
For eligible timberlands held by the taxpayer 
for at least a 
24-year period 
beginning on or 
after January 1, 2005, all of the gain recognized 
on the sale of the eligible timberlands. 
(3) 
Taxpayers claiming this credit must attach a sworn 
statement from a forester licensed pursuant to Title 
32, 
chapter 
that the 
timberlands 
for 
which the 
credit is claimed have been managed sustainably. 
For 
the purposes of this subparagraph, "sustainably" means 
that the timberlands for which the credit is claimed 
have been managed to protect soil productivity and to 
maintain 
or 
improve 
stand 
productivity 
and 
timber 
quality; known occurrences of threatened or endangered 
species 
and 
rare 
or 
exemplary 
natural 
communities; 
significant wildlife habitat 
and essential wildlife 
habitat; and water quality, wetlands and riparian zones. 
Upon request of the State Tax Assessor, the Director of 
the 
Bureau 
of 
Forestry 
within 
the 
Department 
of 
Conservation 
may 
provide 
assistance 
in 
determining 
whether timberlands for which the credit is claimed 
have 
been 
managed 
sustainably. 
When 
assistance is 
requested under this subparagraph, the director or the 
director's 
designee 
may 
enter 
and 
examine 
the 
timberlands for the purpose of determining whether the 
timberlands have been managed sustainably. 
In the case of timberlands 
owned by 
an entity that is 
treated as a pass-through entity for income tax purposes, 
the land must be treated as eligible timberland if ownership 
and use of the land by the pass-through entity satisfies the 
requirements 
of 
this 
paragraph. 
If 
the 
owner 
of 
the 
eligible timberlands is an S corporation, the taxpayer must 
subtract the owner's pro rata share of the gain. 
If the 
owner 
of 
the 
timberlands 
is 
a 
partnership 
or 
limited 
liability company taxed as a partnership, the taxpayer must 
subtract the 
taxpayer's distributive share of 
the gain, 
subject 
to 
the 
percentage 
limitations 
provided 
in this 
paragraph. 
This modification may not reduce Maine taxable income to 
less than zero. 
To the extent this modification results in 
Maine taxable income that is less than zero for the taxable 
year, the excess negative modification amount may be carried 
forward and applied as a subtraction modification for up to 
taxable years. 
The entire amount of the excess negative 
modification must be carried to the earliest of the taxable 
years to which, by reason of this subsection, the negative 
modification may be carried and then to each of the other 
SENATE AMENDMENT 
~.~ 
SENATE 
AMENDMENT 
L.D. 1165 
to COMMITTEE 
AMENDMENT 
"A" to H.P. 
808, 
taxable years to the extent the 
is not used for a prior taxable 
modifications 
must 
be 
used 
generated in later yearsT; and 
unused negative modification 
year. 
Earlier carry-forward 
before 
newer 
modifications 
Sec. 10. 36 MRSA §S200-A, sub-§2, ~Q is enacted to read: 
O. 
For income tax years beginning on or after January 1, 
2006, to the extent included in federal taxable income and 
not otherwise removed from Maine taxable income, an amount 
equal to 
the total of capital gains and ordinary income 
resulting 
from 
depreciation 
recapture 
determined 
in 
accordance with the Code, Sections 1245 and 1250 that is 
realized upon the sale of property certified as multifamily 
affordable 
housing property 
by 
the 
Maine 
State 
Housing 
Authority 
in 
accordance 
with Title 
30-A, 
section 
4722, 
subsection 1, paragraph AA. 
Sec. 
11. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Maine Revenue Services 
0002 
Initiative: 
Provides funds for the computer programming costs 
associated with the income tax exemption for capital gains and 
depreciation 
recapture 
related 
to 
the 
transfer 
of 
certain 
affordable housing property. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2005-06 
$0 
$0 
2006-07 
$20,000 
$20,000' 
This amendment 
amends 
Committee Amendment 
"A" 
to reflect 
changes in the law. 
This 
amendment 
also 
decreases 
the 
Maine 
State 
Housing 
Authority's Other Special Revenue 
Funds share of real estate 
transfer tax revenue by $187,067 in fiscal year 2006-07 and it 
increases the General Fund share of real estate transfer tax 
SENATE AMENDMENT 
SENATE AMENDMENT 
.. A 
.. 
to COMMITTEE 
AMENDMENT 
"A" to H.P. 
L.D. 1165 
808, 
revenue 
by 
$187,067. 
It 
also 
moves 
the 
General 
Fund 
appropr iation of $20,000 from fiscal year 2005-06 to fiscal year 
2006-07. 
SPONSORED BY: 
(Senator RO~DO) 
COUNTY: 
Androscoggin 
FlS('\L \OTE REQUIRED 
(See attached) 
-
SENATE AMENDMENT 
Approved: 04128/06 frac 
LD 1165 
LR 1927(05) 
An Act To Encourage the Preservation of Affordable Housing 
Fiscal Note for Senate Amendment 'A" to Committee Amendment '14" 
Sponsor: Sen. Rotundo 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$0 
$0 
$0 
$0 
2006-07 
$0 
$20,000 
$20,000 
($196,045) 
Projections 
2007-08 
$135,258 
$0 
($135,258) 
($7,419) 
Projections 
2008-09 
$142,021 
$0 
($142,021) 
($7,790) 
The incremental impact of this amendment is to increase General Fund revenue in fiscal year 2006-07 by $187,067, 
decrease the Maine State Housing Authority's Other Special Revenue Funds share of Real Estate Transfer Tax revenue 
by the same amount and move the General Fund appropriation of $20,000 in fiscal year 2005-06 for the computer 
programming costs associated with the income tax exemption to fiscal year 2006-07. The $187,067 reimburses the 
General Fund for its costs of the bill in the current biennium. The numbers above reflect the comprehensive impact of 
the committee amendment as amended by this amendment and adjusted for a later effective date than anticipated on 
the original fiscal note. 
LRI927(5) - Fiscal Note - Page I of I