An Act To Provide Tax Relief to Workers Who Lose Their Jobs Due to Business Closure
Maine Legislature, Session 124, LD 0197
Committee: Taxation
Sponsors: KNIGHT, PERRY, CLARK, GILBERT, INNES, JONES, LANGLEY, SHAW

Legislative Document 
No. 197 
H.P.162 
House of Representatives, January 21, 2009 
An Act To Provide Tax Relief to Workers Who Lose Their Jobs Due 
to Business Closure 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative KNIGHT of Livermore Falls. 
Cosponsored by Senator PERRY of Penobscot and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: CLARK of Millinocket, GILBERT of Jay, INNES of Yarmouth, JONES of 
Mount Vernon, LANGLEY of Ellsworth, SHAW of Standish. 
Printel1 Oil n:cych:d paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §S122, sub-§2, '\lAA, as corrected by RR 2007, c. 2, §23, is 
amended to read: 
AA. For taxable years beginning on or after January I, 2009, an amount equal to the 
net decrease in the depreciation deductions allowable under sections 167 and 168 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 Law 110-185 not been claimed with respect to such property for which an 
addition was required under subsection I, paragraph AA in a prior year. 
Upon the taxable disposition of property to which this paragraph applies, the amount 
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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 I, 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 I, paragraph AA for 
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the same property; aM-
Sec. 2. 36 MRS A §S122, sub-§2, '1lBB, 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. 3. 36 MRSA §S122, sub-§2, '\lCC is enacted to read: 
CC. For income tax years beginning on or after January I, 2009, the amount of 
severance pay to the extent includable in federal adjusted gross income received due 
to the loss of employment by a covered establishment that terminates operations in 
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this State. As used in this paragraph, "covered establishment" means any industrial 
or commercial facility or part thereof that employs or has employed at any time in the 
preceding 12-month period 100 or more persons. 
As used in this paragraph, 
"terminates" means to substantially cease industrial or commercial operations in a 
covered establishment. 
Sec. 4. Application. This Act applies to tax years beginning on or after January I; 
2009. 
Page I - 124LR0289(OI)-1 
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SUMMARY 
This bill exempts severance benefits from Maine income tax if those benefits are 
received from a commercial or industrial establishment located in the State that employs 
or has employed at any time in the preceding 12-month period 100 or more persons and 
terminates operations in the State.