An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds, and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2012 and June 30, 2013
Maine Legislature, Session 125, LD 1043
Committee Amendment CA_A-SA_G_S323 (Senate)
Amends: 36 MRSA §4062, 36 MRSA §5219-S, 36 MRSA §5122, 36 MRSA §6652

SENATE AMENDMENT "er" to COMMITTEE AMENDMENT "A" to H.P. 778, 
L.D. 1043, Bill, "An Act Making Unified Appropriations and Allocations for the 
Expenditures of State Government, General Fund and Other Funds, and Changing Certain 
Provisions of the Law Necessary to the Proper Operations of State Government for the 
Fiscal Years Ending June 30, 2012 and June 30, 2013" 
Amend the amendment in Part I in section 1 by striking out all of subsection 5-C 
(page 517, lines 35 to 37 and page 518, lines 1 to 7 in amendment) and insetting the 
following: 
'S-c. Transfers to General Fund. For the months beginning on or after July 1, 
2009, $25,383,491 in fiscal year 2009-10 aTl4~ $38,145,323 in fiscal year 2010-11 and 
$23,739,516 in fiscal year 2011-12 from the total transfers pursuant to subsection 5 must 
be transferred to General Fund undedicated revenue. The amounts transferred to General 
Fund undedicated revenue each fiscal year pursuant to this subsection must be deducted 
from the distributions required by subsections 4-A and 4-B based on the percentage share 
of the transfers to the Local Government Flmd pursuant to subsection 5. The reductions 
in this subsection must be allocated to each month proportionately based on the budgeted 
monthly transfers to the Local Government Fund as determined at the beginning of the 
fiscal year.' 
Amend the amendment by striking out all of Parts M to P and inserting the following: 
'PARTM 
Sec. M-l. 36 MRSA §4062, sub-§l-A, ~A, as amended by PL 2009, c. 213, Pt. 
E, § 1 and affected by §6, is further amended to read: 
A. For the estates of decedents dying after December 31, 2002, "federal credit" 
means the maximum credit against the tax on the federal taxable estate for state death 
taxes determined under the Code, Section 2011 as of December 31, 2002 exclusive of 
the reduction of the maximum credit contained in the Code, Section 2011 (b )(2); the 
period of limitations under the Code, Section 20 11 (c); and the tern1ination provision 
contained in the Code, Section 20 11 (f). The state death tax deduction contained in the 
Code, Section 2058 must be disregarded. The unified credit must be detetmined 
under the Code, Section 2010 as of December 31, 2000. The termination provision 
SENATE AMENDMENT 
~c» 
\".0: .~ 
SENATE AMENDMENT "G-" to COMMITTEE AMENDMENT "A" to H.P. 778, L.D. 1043 
contained in the Code, Section 2210 must be disregarded. Notwithstanding any other 
provision of this Title to the contrary, the tax determined by this chapter for estates of 
decedents dying after December 31, 2009 must be determined in accordance with the 
law applicable to decedents dying during calendar year 2009, except that, for 
purposes of calculation of the amount of property that may be treated as Maine 
qualified terminable interest property under subsection 2-B, paragraph C, the 
applicable exclusion amount must be determined in accordance with the law 
applicable as of the decedent's actual date of death; and 
Sec. M-2. 36 MRSA §4062, sub-§2-B, ~C, as amended by PL 2005, c. 622, 
§ 16, is repealed and the following enacted in its place: 
C. With respect to which an election is made, on a return timely filed with the 
assessor, to treat the property as Maine qualified terminable interest property for 
purposes of the tax imposed by this chapter. The amount of property with respect to 
which the election is made may not be less than zero or greater than the amount by 
which the federal applicable exclusion amount under the Code, Section 2010 exceeds 
the Maine exclusion amount. For the purposes of this paragraph, "federal applicable 
exclusion amount" does not include any deceased Sj>ousal unused exclusion amount 
under the Code, Section 2810. 
Sec. M-3. Application. This Part applies to the estates of decedents who die after 
December 31,2011. 
PARTN 
Sec. N-l. 36 MRSA §Sl11, sub-§l-B, as enacted by PL 1999, c. 731, Pt. T, §3, 
is amended to read: 
I-B. Single individuals and married persons filing separate returns; tax years 
from 2002 to 2012. For tax years beginning on or after January 1,2002 but not later than 
December 31, 2012, for single individuals and married persons filing separate returns: 
If Maine Taxable income is: 
The tax is: 
Less than $4,200 
2% of the Maine taxable income 
At least $4,200 but less than $8,350 
$84 plus 4.5% of the excess over $4,200 
At least $8,350 but less than $16,700 
$271 plus 7% of the excess over $8,350 
$16,700 or more 
$856 plus 8.5% of the excess over $16,700 
Sec. N-2. 36 MRSA §S111, sub-§l-C is enacted to read: 
I-C. Single individuals and married persons filing separate returns; tax years 
from 2013 to 2012. For tax years beginning on or after January 1, 2013, for single 
individuals and married persons filing separate returns, the taxable income bracket 
amounts under subsection 1-B for tax years beginning in 2012 must be increased by 5%. 
By December 1, 2011, the State Tax Assessor shall calculate the taxable income bracket 
amounts for tax years beginning in 2013 by multiplying the bracket amounts for tax years 
beginning in 2012 after adjustment under section 5403 by 105% and rounding to the next 
lowest multiple of $50. 
SENATE AMENDMENT 
di;'C;), 
II 
SENATE AMENDMENT "G" to COMMITIEE AMENDMENT "An to H.P. 778, L.D. 1043 
Sec. N-3. 36 MRSA §S111, sub-§2-B, as enacted by PL 1999, c. 731, Pt. T, §5, 
is amended to read: 
2-B. Heads of households; tax years from 2002 to 2012. For tax years beginning 
on or after January 1, 2002 but not later than December 31. 2012, for unmarried 
individuals or legally separated individuals who qualify as heads of households: 
If Maine Taxable income is: 
Less than $6,300 
At least $6,300 but less than $12,500 
At least $12,500 but less than $25,050 
$25,050 or more 
The tax is: 
2% of the Maine taxable income 
$126 plus 4.5% of the excess over $6,300 
$405 plus 7% of the excess over $12,500 
$1,284 plus 8.5% of the excess over 
$25,050 
Sec. N-4. 36 MRSA §Slll, sub-§2-C is enacted to read: 
2-C. Heads of households; tax years beginning 2013. For tax years beginning on 
or after January 1, 2013, for unmarried individuals or legally separated individuals who 
qualify as heads of households, the taxable income bracket amounts under subsection 2-B 
for tax years beginning in 2012 must be increased by 5%. By December 1, 2011, the 
State Tax Assessor shall calculate the taxable income bracket amounts for tax years 
beginning in 2013 by multiplying the bracket amounts for tax years beginning in 2012 
after adjustment under section 5403 by 105% and rounding to the next lowest multiple of 
$50. 
. 
Sec. N-S. 36 MRSA §S111, sub-§3-B, as enacted by PL 1999, c. 731, Pt. T, §7, 
is amended to read: 
3-D. Individuals filing married joint return or surviving spouses; tax years from 
2002 to 2012. For tax years beginning on or after January 1, 2002 but not later than 
December 31, 2012, for individuals filing married joint returns or surviving spouses 
permitted to file a joint return: 
If Maine Taxable income is: 
Less than $8,400 
At least $8,400 but less than $16,700 
At least $16,700 but less than $33,400 
$33,400 or more 
The tax is: 
2% of the Maine taxable income 
$168 plus 4.5% of the excess over $8,400 
$542 plus 7% of the excess over $16,700 
$1,711 plus 8.5% of the excess over 
$33,400 
Sec. N-6. 36 MRSA §S111, sub-§3-C is enacted to read: 
3-C. Individuals filing married joint return or surviving spouses; tax years 
beginning 2013. For tax years beginning on or after January 1, 2013. for individuals 
filing married joint returns or surviving spouses permitted to file a joint return. the 
taxable income bracket amounts under subsection 3-B for tax years beginning in 2012 
must be increased by 5%. By December 1, 2011, the State Tax Assessor shall calculate 
the taxable income bracket amounts for tax years beginning in 2013 by multiplying the 
SENATE AMENDMENT 
I··f';' ",,.,, 
\ 1." 
SENATE AMENDMENT" G" to COMMITTEE AMENDMENT "A" to H.P. 778, L.D. 1043 
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bracket amounts for tax years beginning in 2012 after adjustment under section 5403 by 
105% and rounding to the next lowest multiple of $50. 
Sec. N-7. 36 MRSA §5219-S, as amended by PL 2009, c. 213, Pt. BBBB, §16, is 
further amended to read: 
§5219-S. Earned income credit 
1. Resident taxpayer. A resident individual is allowed a refundable credit against 
the tax otherwise due under this Part in the amount of $% 10% of the federal earned 
income credit for the same taxable year, elEsef3t that fer tax years begissisg is 2009 aaa 
2010, the applisable f3ereeatage is 4%. 
lO 
2. Nonresident taxpayer. A nonresident individual is allowed a refundable credit 
against the tax otherwise due under this Part in the amount of ~ 
10% of the federal 
earned income credit for the same taxable year, exeept taat fer tax years begissisg is 
2009 aaa 2010, the apJIlieable pereeRtage is 4%, multiplied by the ratio of the individual's 
Maine adjusted gross income, as defined in section 5102, subsection l-C, paragraph B, to 
the individual's entire federal adjusted gross income, as modified by section 5122. 
3. Part-year resident taxpayer. An individual who files a return as a part-year 
resident in accordance with section 5224-A is allowed a refundable credit against the tax 
otherwise due under this Part in the amount of ~ 
10% of the federal earned income 
credit for the same taxable year, exsept that fer tax years begiRRiag ia 2009 asa 2010, tae 
aflplieable pereeRtage is 4%, multiplied by a ratio, the numerator of which is the 
individual's Maine adjusted gross income as defined in section 5lO2, subsection I-C, 
paragraph A for that portion of the taxable year during which the individual was a 
resident plus the individual's Maine adjusted gross income as defined in section 5102, 
subsection I-C, paragraph B for that portion of the taxable year during which the 
individual was a nonresident and the denominator of which is the individual's entire 
federal adjusted gross income, as modified by section 5122. 
4. LimitatioR. Tae sreai{ allowea by tais seetios may sot reooee tae Maise iseome 
tax to less taas liero. 
Sec. N-8. 
Adjustment of brackets. 
By December 1, 2011, the State Tax 
Assessor shall submit legislation to the Joint Standing Committee on Taxation that places 
into law the bracket amounts for tax years beginning on or after January 1, 2013 
calculated under the Maine Revised Statutes, Title 36, section 5111, subsections l-C, 2-C 
and 3-C and provides for continued adjustment of bracket amounts under Title 36, section 
5403. The joint standing committee is authorized to report out a bill to the Second 
Regular Session of the 125th Legislature that implements the adjustments to the brackets. 
PART 0 
Sec. 0-1. 36 MRSA §5122, sub-§l, ~, as amended by PL 2007, c. 240, Pt. 
CCC, §2 and affected by §4, is further amended to read: 
N. 
With respect to property placed in service during the taxable year, an amount 
equal to the net increase in depreciation or expensing attributable to: 
SENATE AMENDMENT 
SENATE AMENDMENT "G-" to COMMITIEE AMENDMENT "A" to H.P. 778, L.D. 1043 
(1) For taxable years beginning on or after January 1,2002 but prior to January 
1, 2006, a 30% bonus depreciation deduction claimed by the taxpayer pursuant to 
Section 101 of the federal Job Creation and Worker Assistance Act of 2002, 
Public Law 107-147 with respect to property placed in service during the taxable 
year; 
(2) For taxable years beginning on or after January 1,2002 but prior to January 
1, 2006, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to 
Section 201 of the federal Jobs and Growth Tax Relief Reconciliation Act of 
2003, Public Law 108-27 with respect to property placed in service during the 
taxable year; and 
(3) For taxable years beginning on or after January 1, 2003 but prior to January 
1, 2011, the increase in aggregate cost under Section 179 of the Code arising 
from amendments to the Code applicable to tax years beginning on or after 
January 1,2003; 
PARTP 
Sec. P-l. 36 MRSA §6652, sub-§4, as amended by PL 2009, c. 496, §28, is 
further amended to read: 
4. Reimbursement percentage. The reimbursement under this chapter is an amount 
equal to the percentage specified in paragraphs A and B of taxes assessed and paid with 
respect to each item of eligible property, except that for claims filed for application 
periods that begin on August 1, 2006, August 1, 2009 6f~ August 1, 2010, August 1, 2011 
or August 1, 2012 the reimbursement is 90% of that amount. 
A. 
For each of the first to 12th years for which reimbursement is made, the 
percentage is 100%. 
B. Pursuant to section 699, subsection 2, reimbursement under this chapter after the 
12th year for which reimbursement is made is according to the following percentages 
of taxes assessed and paid with respect to each item of eligible property. 
(1) For the 13th year for which reimbursement is made, the percentage is 75%. 
(2) For the 14th year for which reimbursement is made, the percentage is 70%. 
(3) For the 15th year for which reimbursement is made, the percentage is 65%. 
(4) For the 16th year for which reimbursement is made, the percentage is 60%. 
(5) For the 17th year for which reimbursement is made, the percentage is 55%. 
(6) For the 18th year for which reimbursement is made and for subsequent years, 
the percentage is 50%.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SENATE AMENDMENT 
SENATE AMENDMENT "&" to COMMITTEE AMENDMENT "A" to H.P. 778, L.D. 1043 
SUMMARY 
This amendment strikes all of Parts M to P from Committee Amendment "A" and 
replaces them with the following provisions. 
1. It restores $16,611,122 of the reduction to revenue sharing made in fiscal year 
2011-12 and completely eliminates the reduction in fiscal year 2012-13. 
2. It eliminates the changes to the estate tax proposed by Committee Amendment 
"A" except that it retains the change to the definition of "qualified terminable interest 
property" to conform to federal law. 
3. It eliminates the changes to the income tax brackets and rates as proposed in 
Committee Amendment "A" and instead increases the tax brackets by 5% beginning with 
tax years beginning on or after January 1, 2013. It also increases the earned income tax 
credit to 10% and makes it refundable. 
4. 
It eliminates the credit of 10% of federal bonus depreciation as proposed in 
Committee Amendment "A" but retains the conformity with federal law regarding so-
lS 
called "Section ] 79" expensing, which allows businesses to claim business expense 
deductions for purchases to the same extent as pennitted under federal income tax law. 
5. It eliminates the reduction in the Circuitbreaker Program proposed in Committee 
Amendment "A" and amends the laws governing the Business Equipment Tax 
Reimbursement program to decrease the reimbursement percentage for business 
equipment reimbursement to 90% of the benefit for the 2012-2013 biennium. 
FISCAL NOTE REQUIRED 
(See attached) 
,'''"' 
COUNTY: Cumber~and 
II 
SENATE AMENDMENT 
Approved: 06115/11 ;tvae 
LD 1043 
LR2067(12) 
An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, 
General Fund and Other Funds, and Changing Certain Provisions of the Law Necessary to the Proper 
Operations of State Government for the Fiscal Years Ending June 30, 2012 and June 30, 2013 
Fiscal Note for Senate Amendment "G-" to Committee Amendment" A" S.-:3 2 3 
Sponsor: Sen. Dill of Cumberland 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fund Detail by Section 
Revenue 
General Fund 
PART I 
PARTM 
PARTN 
PART 0 
PARTP 
Other Special Revenue Funds 
PART I 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
FY 2011-12 
FY 2012-13 
FY 2013-14 
FY 2014-15 
$0 
($4,141,579) ($152,197,043) ($164,212,246) 
$0 
$17,741,183 
($17,741,183) 
$0 
($2,094,000) 
$24,695,212 
($4,860,029) 
$4,141,579 
$152,197,043 
$47,112,050 
$6,756,728 
($47,112,050) 
($6,756,728) 
$0 
$23,819,215 
$49,878,000 
$138,398,000 
$7,016,132 
($3,263,444) 
($5,640,503) 
$0 
$17,741,183 
$47,112,050 
$6,756,728 
$164,212,246 
$7,203,035 
($7,203,035) 
$27,354,580 
$147,524,000 
($3,463,299) 
$0 
$7,203,035 
This amendment has no net General Fund effect in fiscal year 2011-12 and increases the General Fund savings of the 
bill in fiscal year 2012-13 by $4,141,579. 
LR2067(l2) - Fiscal Note - Page 1 of 1