An Act To Provide Tax Relief for Retired Veterans Operating Businesses in THaine --'.'."""-""."' •. ----.. ---... ---..-,---.------~,..,--------------Reference to the COlllmittee on Taxation suggested and ordered printed. ~Yl'1 . J J1 . ,~'n ----/Y) -./1., i / I I (JI,r.,U1."d;. 711· /1 £dCr'lw.fr:'v~t,A rvIILLlCENT i\i[. MacFARLAND Clerk
Maine Legislature, Session 124, LD 0647
Sponsors: BERRY, CROCKETT, DA VIS, PINCiREE, WI-IEELER

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Legisla tive Doell men t 
No. 647 
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)-LP, 461 
House of Representatives, February 19; 2009 
An Act To Provide Tax Relief for Retired Veterans Operating 
Businesses in THaine 
--'.'."""-""."' •. ----.. ---... ---..-,---.------~,..,--------------
Reference to the COlllmittee on Taxation suggested and ordered printed. 
~Yl'1 . J J1 
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I I (JI,r.,U1."d;. 711· /1 £dCr'lw.fr:'v~t,A 
rvIILLlCENT i\i[. MacFARLAND 
Clerk 
Presented by ,Representative CORNELL dt! HOUX of Bnms\vick. 
Cosponsored by Senator PERRY or Penobscot ane! 
. 
Rcprcscntati\'cs: BECK of Wat,erville, BERRY of Bowdoinham. BRYANT or Windham, 
CROCKETT of Bethel, DA VIS of Sangerville, FLEMINGS ,0C Bar Harbor. KNIGlfT or 
Li\'crmorc Falls, LANGLEY ofE!lsworth, NASS oCA.cto[1, Speaker PINCiREE of North 
[laven, PfC}rrI of Unity, RUSSELL oC Portland, TRINWARD oC Waterville, WI-IEELER of 
Kittery. Senators: BARfLET'f OfCulllbcrland: GERZOFSKY ofCumbcriand, GOODALL oC 
Sagauahoc. NASS of York, NUTTING or Androscoggin. SULLIV AN of \'?rk. 
PI!r;I::;! ,111 f, .. · • .:kd p.!jXT 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §S122, suh-§2, ~AA, as corrected by RR 2007, c. 2, §23, is 
amended to read: 
·4 
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 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; ana 
Sec. 2. 36 MRSA §S122, sub-§2, errBB, as reallocated by RR 2007, c. 2, §24, is 
amended to read: 
25· 
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, ~CC is enactedto read: 
CC. For each individual who is a primary recipient of pension benefits under a 
military retirement plan as defined in paragraph M and who operates a business in the 
State with at least one employee who is not related to the individual, an amount equal 
to 50% of the benefits received under the military retirement plan. The subtraction 
allowed under this paragraph may not be claimed by an individual who claims the 
subtraction allowed under paragraph M. 
. 
SUMMARY 
This bill provides an income tax deduction for 50% of military retirement benefits for 
a veteran who operates a business in the State with at least one employee who is not 
related to the veteran. 
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