An Act To Exclude Business and Capital Losses from Consideration as Income under the Circuitbreaker Program
Maine Legislature, Session 124, LD 0842
Committee: Taxation
Sponsors: RlCHARDSON, RECTOR, KRUGER

FIRST REGULAR SESSIOt~-2009 
Legislative Document 
No. 842 
H.P.578 
House of Representatives, March 3, 2009 
An Act To Exclude Business and Capital Losses from Consideration 
as Income under the Circuitbreaker Program 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative RlCHARDSON of Warren. 
Cosponsored by Senator RECTOR of Knox and 
, Representative: KRUGER of Thomaston. 
Prin~cd on n::cyclt:d pupcr 
IY/l-~ 'fr).17!tLC~{ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People ofthe State of Maine as follows: 
Sec. 1. 36 MR.SA §6201, s1.llb-§9, ~A,as enacted by PL 2007, c. 438, §113, is 
amended to read: 
A. Maine adjusted gross income must be increased by the following amounts, to the 
extent not included in Maine adjusted gross income: 
(1). Contributions, including catch-up contributions, to any pension, annuity or 
retirement plan, including contributions to an individual retirement account under 
Section 408 of the Code, a simplified employee pension plan, a salary reduction 
simplified employee pension plan, a savings incentive match plan for employees 
plan and a deferred compensation plan under Section 457 of the Code and cash or 
deferred arrangements under Section 401 of the Code and qualified, or "Keogh," 
accounts; 
(2) Nontaxable contributions to a flexible spending arrangement under Section 
of the Code; . 
. 
(3) Amounts excluded from gross income under Section 129 of the Code; 
(4) Distributions from a ROTH IRA; 
(5) Capital gains; 
(6) The absolute value. of the amount of trade or business loss, net operating loss 
carryover, capital loss, rental loss, farm loss, partnership or S Corporation loss 
included ill Maine adjusted gross illcome; 
(7) Inheritance; 
(8) Life i~urance proceeds paid on death of an insured; 
(9) Nontaxable lawsuit rewards resulting from lawsuits for actions such as 
slander, libel and pain and suffering, excluding reimbursements such as medical 
and legal expenses associated with the case; 
(10) Support money; 
(11) Nontaxable strike benefits; 
(12) The gross amount of any pension or annuity, including railroad retirement 
benefits; 
. 
(13) All payments received under the federal Social Security Act and state 
unemployment insurance laws; 
(14) Veterans' disability pensions; 
(15) Nontaxable interest received from the Federal Government or any ~f its 
agencies or instrumentalities; 
(16) Interest or dividends on obligations or securities of this State and its political 
subdivisions and authorities; 
(17) Workers' compensation and the gross amount of "loss of time" insurance; 
and 
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L) 
(18) Cash public assistance and relief, but not including relief granted under this 
chapter. 
Sec. 2. Application. This Act applies to Claims for benefits under the Maine 
Residents Property Tax Program filed on or after August 1, 2009". 
SUMMARY 
" 
" 
Under the Circuitbreaker Program, eligibility and benefits are based on the applicant's 
modified Maine adjusted gross income, among other factors. 
In determining Maine 
adjusted gross income for purposes of the program, certain losses, such as a trade or 
business loss or capital loss, are required to be added back to the extent that those losses 
are included in Maine adjusted gross income. 
This bill amends the definition of "income" under the Circuitbreaker Program to 
remove the requirement that Maine adjusted gross income be modified by adding back 
any capital loss or loss from a trade orbusiness.