An Act To Provide a Tax Deduction for Landlords Who Complete Energy Audits on Rental Units Reference to the Comniittee on Taxation suggested and ordered printed.
Maine Legislature, Session 124, LD 0885
Sponsors: ALFOND, TRINW ARD, JACKSON, PERRY, RECTOR, SCHNEIDER, CAREY, FLETCHER

Legislative Document· 
No. 885 
S.P.333 
In Senate, March 5, 2009 
An Act To Provide a Tax Deduction for Landlords Who Complete 
Energy Audits on Rental Units 
Reference to the Comniittee on Taxation suggested and ordered printed. 
Presented by Senator ALFOND of Cumberland. 
Cosponsored by Representative TRINW ARD of Waterville and 
9rg(J~ 
JOY J. O'BRIEN 
Secretary.ofthe Senate 
Senators: JACKSON of Aroostook, PERRY of Penobscot, RECTOR of Knox, SCHNEIDER 
of Penobscot, Representatives: CAREY of Lewiston, FLETCHER of Winslow, GILES of· 
Belfast,. TREAT of Hallowell. 
Printed on recycled paper 
Be it enacted by the People ofthe State of ~aine as follows: 
Sec. 1. 3S~A MRSA §10006, sub-:§3 is enacted to read: 
3. Tax deduction for compliance. To qualify for a tax deduction under Title 36, 
. 
section 5122, subsection 2, paragraph CC or section 5200-A, subsection 2, paragraph T, a 
landlord or other lessor of residential property must demonstrate to the satisfaction of the 
commission that· an energy audit, as defined by the commission by rule, has been 
completed. 
. 
Sec. 2. 36 MRSA §S122, sub-§2, IijfAA, 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 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 1, paragraph AA in a prior y,ear. 
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; ftfI:ti. 
Sec. 3. 36 MRSA §S122, suh-§2, ~B, as reallocated by RR 2007; c. 2, §24, is 
amended to read: 
. BB. The amount of pension ben .. :ts 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. 41. 36 MRSA §S122, sub-§2, IijfCC is enacted to read: 
CC. For taxable years beginning on or after January 1, 2009, an amount equal to the 
cost of the energy audit pursuant to Title 35-A, section 10006, subsection 3, or $750, 
whichever is less. 
(1) For a building with: 
(a) One to 4 units, one tax deduction for that building; 
(b) Five to 25 units, 3 tax deductions for that building; and 
Page I - 124LR1765(Ol)-1 
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ec) Twenty-six or more units, 5 tax deductions for that building. 
Sec. 5. 36 MRSA §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 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 ~nder 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 
addition modification for such property under subsection 1, paragraph T and the 
subtraction modifications allowed pursuant to this paragraph. 
'The total amourit 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; and 
Sec. 6. 36 MRSA §S200-A, sub-§2, e;rS, 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; 
(2) The taxable year is within the allowable federal period for carryover of the 
n~t operating loss plus one year; and 
(3) The amount has not .been previously used as a modification pursuant to this 
subsection~; and 
Sec. 7. 36 MRSA §S200-A, sub-§2, ff is enacted to read: 
T. For taxable years beginning on or after January 1, 2009, an amount equal to the 
cost of the energy audit pursuant to Title 35-A, section 10006, subsection 3, or $750, 
whichever is less. ' 
' 
(1) For a building with: 
(a) One to 4 units, one tax deduction for that building; 
eb) Five to 25 units, 3 tax deductions for that building; and 
(c) Twenty-six or more units, 5 tax deductions for that bUilding. 
SUMMARY 
This bill provides an income tax deduction to a landlord or other lessor of residential 
property who has demonstrated tothe satisfaction of the Public Utilities Commission that 
Page2 -124LR1765(Ol)-1 
an energy audit on that landlord's or lessor's property has been completed. 
Each 
deduction is capped at the cost of the audit, or $750, whichever is less. Forabuilding 
with one to 4 units, a maximum of one audit may be deducted for that building. For a 
building with 5 to 25 units, a maximum of 3 audits may be deducted for that building. 
Fora building with 26 or more units, a maximum of 5 audits may be deducted for that 
building. 
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