An Act To Conform the Maine Tax Laws for 2008 to the United States Internal Revenue Code
Maine Legislature, Session 124, LD 0086
Committee Amendment CA_A_S134 (Senate)
Amends: 36 MRSA §5200-A

COMMITTEE AMENDMENT "A "to S.P. 35, L.D. 86, Bill, "An Act To Conform 
the Maine Tax Laws for 2008 to the United States Internal Revenue Code" 
Amend the bill by striking out the title and sUbstituting the following: 
'An Act Regarding Conformity of Maine Tax Laws with the United States Internal 
Revenue Code' 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'PART A 
Sec. A-I. 36 MRS A §111, sub-§l-A, as amended by PL 2007, c. 539, Pt. CCC, 
§ 1 and affected by § 19, is further amended to read: 
l-A. Code. "Code" means the United States Internal Revenue Code of 1986 and 
amendments to that Code as ofFebruarv 13,2008 February 17,2009. 
PART B 
Sec. B-1. 36 MRSA §S122, sub-§l, .,-rZ, as enacted by PL 2007, c. 539, Pt. CCC, 
§4, is amended to read: 
Z. For income tax years beginning on or after January 1, 2008, the amount of any 
qualified state and local tax benefit and any qualified payment excluded from gross 
income pursuant to the Code, Section 139(b); aM 
Sec. B-2. 36 MRSA §S122, sub-§l, CUAA, as enacted by PL 2007, c. 539, Pt. 
CCC, §5, is amended to read: 
AA. For taxable years beginning on or after January 1, 2008 but prior to January 1, 
;w..w, an amount equal to the net increase in depreciation attributable to the W% 
ben-utr depreciation deduction claimed by the taxpayer pursuant to Seotion 103 of the 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A "to S.P. 35, L.D. 86 
Economic Stimulus Act of 2008, Public La''''' 110 185 "'lith respect to property placed 
in service during the taxable year under Section 168(k) of the Code arising from 
amendments to the Code applicable to taxable years beginning on or after January 1, 
2008~; and 
Sec. B-3. 36 MRSA §S122, sub-§2, ~AA, as corrected by RR 2007, c. 2, §23, is 
amended to read: 
AA. For taxable years beginning on or after January 1,2009, an amount equal to the 
net decrease in the depreciation deductions allowable under sections Sections 167 and 
of the Code that would have been applicable to that property had the 50% bonus 
depreciation deduction under Section 103 of the Economic Stimulus Act of 2008, 
Public La'.", 110 185 Section 168(k) of the Code not been claimed with respect to 
such property placed in service on or after January 1, 2008 for which an addition was 
required under subsection 1, paragraph AA in a prior year. 
Upon the taxable disposition of property to which this paragraph applies, the amount 
of any gain or loss includable in federal adjusted gross income must be adjusted for 
Maine income tax purposes by an amount equal to the difference between the 
addition modification for such property under subsection 1, paragraph AA and the 
subtraction modifications allowed pursuant to this paragraph. 
The total amount of subtraction claimed for property under this paragraph for all tax 
years may not exceed the addition modification under subsection 1, paragraph AA for 
the same property; and 
Sec. B-4. 36 MRSA §S200-A, sub-§l,GJjT, as amended by PL 2007, c. 700, Pt. 
B, §2, is further amended to read: 
T. For taxable years beginning on or after January 1, 2008 but prior to January 1, 
~, an amount equal to the net increase in depreciation attributable to the .sWVo 
benus depreciation deduction claimed by the taxpayer pursuant to Section 103 of the 
Economic Stimulus Act of2008, Public La''''' 110 185 "'lith respect to property placed 
in service during.the taxable year under Section 168(k) of the Code arising from 
amendments to the Code applicable to taxable years beginning on or after January 1, 
2008; and 
Sec. B-S. 36 MRS A §S200-A, sub-§2, ~, as amended by PL 2007, c. 700, Pt. 
B, §5, is further amended to read: 
R. For taxable years beginning on or after January 1, 2009, an amount equal to the 
net decrease in the depreciation deductions allowable under sections Sections 167 and 
of the Code that would have been applicable to that property had the 50% bonus 
depreciation deduction under Section 103 of the Economic Stimulus Act of 2008, 
Public La'''' 11 0 185 Section 168(k) of the Code not been claimed with respect to 
such property placed in service on or after January 1, 2008 for which an addition was 
required under subsection 1, paragraph T in a prior year. 
Upon the taxable disposition of property to which this paragraph applies, the amount 
of any gain or loss includable in federal adjusted gross income must be adjusted for 
Maine income tax purposes by an amount equal to the difference between the 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A "to S.P. 35, L.D. 86 
addition modification for such property under subsection 1, paragraph T and the 
subtraction modifications allowed pursuant to this paragraph. 
The total amount of subtraction claimed for property under this paragraph for all tax 
years may not exceed the addition modification under subsection 1, paragraph T for 
the same property; ftfld 
PARTC 
Sec. C-l. 36 MRSA §S122, sub-§l, ~B is enacted to read: 
BB. For tax years beginning on or after January 1, 2009 but before January 1, 2011, 
an amount equal to the gross income during the taxable year from the discharge of 
indebtedness deferred under Section 108Ci) of the Code. 
Sec. C-2. 36 MRS A §S122, sub-§2, ~B, as reallocated by RR 2007, c. 2, §24, 
is amended to read: 
BB. The amount of pension benefits to the extent included in federal adjusted gross 
income under a military retirement plan as defined in paragraph M that exceed the 
amount of military retirement plan pension benefits deducted under paragraph M and 
that are received by a person who practices as a licensed dentist in this State for an 
average of at least 20 hours per week during the tax year and who accepts patients 
who receive benefits under the MaineCare program administered under Title 22, 
chapter 855.,.; and 
Sec. C-3. 36 MRSA §S122, sub-§2, ~CC is enacted to read: 
CC. 
An amount equal to the gross income from the discharge of indebtedness 
previously deferred under Section 108Ci) of the Code and included in federal adjusted 
gross income. The total subtraction for all years under this paragraph may not exceed 
the amount of the addition modification under subsection 1. paragraph BB for the 
same indebtedness. 
Sec. C-4. 36 MRSA §S200-A, sub-§l, ~, as enacted by PL 2007, c. 700, Pt. B, 
§3, is amended to read: 
U. For tax years beginning in 2008, 10% of the absolute value in excess of $100,000 
of any net operating loss that, pursuant to the Code, Section 172, is being carried over 
for federal income tax purposes to the taxable year by the taxpayer.,.; and 
Sec. C-S. 36 MRSA §S200-A, sub-§l, ~ 
is enacted to read: 
V. For tax years beginning on or after January 1. 2009 but before January 1. 2011, an 
amount equal to the gross income during the taxable year from the discharge of 
indebtedness deferred under Section 1 08Ci) of the Code. 
Sec. C-6. 36 MRS A §S200-A, sub-§2, 'irS, as enacted by PL 2007, c. 700, Pt. B, 
§6, is amended to read: 
S. 
An amount equal to the value of any prior year addition modification under 
subsection 1, paragraph U, but only to the extent that: 
(1) Maine taxable income is not reduced below zero; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A "to S.P. 35, L.D. 86 
(2) The taxable year is within the allowable federal period for carryover of the 
net operating loss plus one year; and 
(3) The amount has not been previously used as a modification pursuant to this 
subsection,,; and 
Sec. C-7. 36 MRSA §5200-A, sub-§2, c;rr is enacted to read: 
T. 
An amount equal to the gross income from the discharge of indebtedness 
previously deferred under Section 108Ci) of the Code and included in federal taxable 
income. The total subtraction for all years under this paragraph may not exceed the 
amount of the addition modification under subsection 1, paragraph V for the same 
indebtedness. 
PARTD 
Sec. D-l. 36 MRSA §S124-A, first fjf, as amended by PL 2005, c. 12, Pt. P, §5, is 
further amended to read: 
The standard deduction of a resident individual is equal to the standard deduction as 
determined in accordance with the Code, Section 63, exclusive of the Code, Section 
63(c)(I)(C) and Section 63(c)(1)(E), except that for tax years beginning after 2002, 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. 
PARTE 
Sec. E-l. Application. This Act applies to tax years beginning on or after January 
1, 2008 unless otherwise indicated and to any prior years as specifically provided by the 
United States Internal Revenue Code.' 
SUMMARY 
This amendment strikes the bill and does the following. 
Part A updates references to the United States Internal Revenue Code contained in 
the Maine Revised Statutes, Title 36 to the United States Internal Revenue Code as 
amended through February 17,2009, for tax years beginning on or after January 1,2008 
and for any prior years as specifically provided by the United States Internal Revenue 
Code. The amendment primarily affects Maine's income tax and estate tax laws. 
Part B extends nonconformity with federal bonus depreciation provisions applicable 
to property placed in service after 2008, including the bonus depreciation provisions 
recently enacted in the federal American Recovery and Reinvestment Act of2009. 
Part C decouples from the deferral of recognition of income from discharge of certain 
business indebtedness as enacted by the federal American Recovery and Reinvestment 
Act of2009. 
COMMITTEE AMENDMENT 
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COMMIlTEE AMENDMENT ,,4 "to S.P. 35, L,D. 86 
Part D decouples the Maine individual income tax standard deduction amounts from 
the federal additional standard deduction amounts for real estate property taxes paid on 
personal residences and state sales and excise taxes paid on the purchase of certain motor 
vehicles. The additional federal standard deduction amount for real estate property taxes 
generally applies to tax years beginning in 2008 and 2009. 
The additional federal 
standard deduction amount for state sales and excise taxes generally applies to tax years 
beginning in 2009. 
F[SCAL NOTE REQtlR£D 
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@ee attached) 
COMMITTEE AMENDMENT 
Approved: 05101109 Mac. 
LD86 
LR349(02) 
An Act '1'0 Conform the Maine Tax Laws for 2008 to the United States Internal Revenue Code 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for BiU as Amended by Committee Amendment ''A'' 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
$3,389;261 
2010-11 
$429,182 
Projections 
2011-12 
$0 
Other Special Revenue Funds 
($3,389,261) 
($182,142) 
($429,182) 
($23,065) 
$0 
$0 
Fiscal Detail and Notes 
Projections 
2012-13 
$0 
$0 
$0 
Confonning to federal tax law changes, including exempting the first $2400 of unemployment compensation from 
taxable income in 2009 and modifying the Earned fucome Tax Credit rate, will reduce individual income tax 
collections. General Fund revenue will decrease by $3,389,261 in FY 2009-10 and $429,182 in FY 2010-11. Local 
Government Fund revenue will decrease by $182,142 in FY 2009-10 and $23,065 in FY 2010-11. Additional 
administrative costs to Maine Revenue Services associated with conforming can be absorbed within existing budgeted 
resources. 
LR0349(02) - Fiscal Note - Page 1 of 1 
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