An Act To Update References to the United States Internal Revenue Code of 1986 Contained in the Maine Revised Statutes
Maine Legislature, Session 127, LD 1564
Committee Amendment CA_B-HA_B_H516 (House)
Amends: 36 MRSA §5122

HOUSE AMENDMENT "B" to COMMITTEE AMENDMENT "B" to S.P. 616, 
L.D. 1564, Bill, "An Act To Update References to the United States Internal Revenue 
Code of 1986 Contained in the Maine Revised Statutes" 
Amend the amendment by inserting after the title the following: 
'Amend the bill by inserting after the enacting clause and before section 1 the 
following: 
'PART A'' 
Amend the amendment by inserting after the first indented paragraph the following: 
'Sec. 2. 36 MRSA §5122, sub-§1, ,rQ, as enacted by PL 2003, c. 20, Pt. II, §2, is 
repealed.' 
Amend the amendment by striking out all of section 4 and inserting the following: 
'Sec. 4. 36 MRSA §5122, sub-§1, ,r,rKK and LL are enacted to read: 
KK. For taxable years beginning in 2015: 
(1) 
An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section l 68(k) 
with respect to property placed in service in the State during the taxable year for 
which a credit is claimed under section 5219-NN for that taxable year: and 
(2) 
An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to property for which a credit is not claimed under section 5219-NN: 
and 
LL. For taxable years beginning on or after January 1, 2016 but before January 1, 
2020, an amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer for the taxable year under the Code, 
Section 168(k).' 
Amend the amendment in section 7 by striking out all of paragraph PP (page 4, lines 
to 31 in amendment) and inserting the following: 
HOUSE AMENDMENT 
, .. 
HOUSE AMENDMENT,.../;;, to COMMITTEE AMENDMENT "B'' to S.P. 616, L.D. 1564 
'PP. For taxable years beginning on or after January 1, 2017, an amount equal to the 
net increase in the depreciation deduction allowable under the Code, Sections 167 
and 168 that would have been applicable to that property had the depreciation 
deduction under the Code, Section l 68(k) not been claimed with respect to such 
property placed in service during the applicable taxable year for which an addition 
was required under subsection 1, paragraph LL for the applicable taxable 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 LL and the 
subtraction modifications allowed pursuant to this paragraph. 
The total amount of subtraction claimed under this paragraph for all tax years may 
not exceed the addition modification under subsection 1, paragraph LL for the same 
property.' 
Amend the amendment by striking out all of sections 8 to 11. 
Amend the amendment in section 14 by striking out all of paragraph DD (page 5, 
lines 37 to 39 and page 6, lines 1 to 6 in amendment) and inserting the following: 
'DD. For taxable years beginning on or after January 1, 2016 but before January 1, 
2020, an amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer for the taxable year under the Code, 
Section 168(k).' 
Amend the amendment in section 17 by striking out all of paragraph BB (page 7, 
lines 16 to 36 in amendment) and inserting the following: 
'BB. For taxable years beginning on or after January 1, 2017, an amount equal to the 
net increase in the depreciation deduction allowable under the Code, Sections 167 
and 168 that would have been applicable to that property had the depreciation 
deduction under the Code, Section 168(k) not been claimed with respect to such 
property placed in service during the applicable taxable year for which an addition 
was required under subsection 1, paragraph DD for the applicable taxable year. 
Upon the taxable disposition of property to which this paragraph applies, the amount 
of any gain or loss includable in federal taxable 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 DD and the subtraction 
modifications allowed pursuant to this paragraph. 
The total amount of subtraction claimed under this paragraph for all tax years may 
not exceed the addition modification under subsection 1, paragraph DD for the same 
property.' 
Amend the amendment by striking out all of section 18. 
Amend the amendment in section 20 in the first line (page 9, line 6 in amendment) by 
striking out the following: "Act" and inserting the following: 'Part' 
Amend the amendment in section 20 in the first paragraph in the last line by inserting 
after the following: "2015." the following: 'That section of this Part that repeals the Maine 
HOUSE AMENDMENT 
.::,. 
HOUSE AMENDMENT"/;" to COMMITTEE AMENDMENT "B" to S.P. 616, L.D. 1564 
Revised Statutes, Title 36, section 5122, subsection 1, paragraph Q applies to tax years 
beginning on or after January 1, 2016.' 
Amend the amendment by inserting after section 20 the following: 
'PART B 
Sec. B-1. Transfer from tax relief fund. The State Controller shall transfer 
$9,535,933 from the Tax Relief Fund for Maine Residents established in the Maine 
Revised Statutes, Title 5, section 1518-A to the unappropriated surplus of the General 
Fund no later than June 30, 2016. 
PARTC 
Sec. C-1. Appropriations and allocations. The following appropriations and 
allocations are made. 
TREASURER OF STATE, OFFICE OF 
Debt Service - Treasury 0021 
Initiative: Reduces funding for debt service costs. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
PARTD 
2015-16 
($6,113,120) 
($6,113,120) 
2016-17 
$0 
$0 
Sec. D-1. 
Transfers from available fiscal year 2015-16 Other Special 
Revenue Funds balances within the Department of Environmental Protection 
to General Fund. Notwithstanding any other provision of law, at the close of fiscal 
year 2015-16, the State Controller shall transfer $194,312 from available balances in 
Other Special Revenue Funds accounts within the Department of Environmental 
Protection to the General Fund unappropriated surplus. On or before June 30, 2016, the 
Commissioner of Environmental Protection shall determine from which accounts the 
funds must be transferred so that the sum equals $194,312 and notify the State Controller 
and the Joint Standing Committee on Appropriations and Financial Affairs of the 
amounts to be transferred from each account. 
PART E 
Sec. E-1. Personal Services savings; transfer to General Fund revenue. 
Notwithstanding the Maine Revised Statutes, Title 5, section 1582, subsection 4 or any 
other provision of law, the State Controller shall transfer the first $3,652,722 of 
unexpended Personal Services appropriations that would otherwise lapse to the General 
HOUSE AMENDMENT 
..,~ 
~ ~:-
HOUSE AMENDMENT"!!:)" to COMMITTEE AMENDMENT "B" to S.P. 616, L.D. 1564 
Fund Salary Plan program in the Department of Administrative and Financial Services to 
the unappropriated surplus of the General Fund at the close of fiscal year 2015-16. 
Sec. E-2. General Fund Salary Plan; transfer to General Fund revenue. 
Notwithstanding any other provision of law, the State Controller shall transfer up to 
$3,652,722 from the General Fund Salary Plan program in the Department of 
Administrative and Financial Services to the unappropriated surplus of the General Fund 
at the close of fiscal year 2015-16 in the event that the total savings in section 1 of this 
Part are not achieved. 
PARTF 
Sec. F-1. Transfer from Maine Budget Stabilization Fund. 
The State 
Controller shall transfer $21,621,138 from the Maine Budget Stabilization Fund 
established in the Maine Revised Statutes, Title 5, section 1532 to the unappropriated 
surplus of the General Fund no later than June 30, 2017. 
PARTG 
Sec. G-1. 
Transfer to General Fund unappropriated surplus; K-12 
Essential Programs and Services, Other Special Revenue Funds account. 
Notwithstanding any other provision of law, the State Controller shall transfer $767,507 
from the K-12 Essential Programs and Services, Other Special Revenue Funds account in 
the Department of Education to the General Fund unappropriated surplus no later than 
June 30, 2016. 
Sec. G-2. Mill expectation. The mill expectation pursuant to the Maine Revised 
Statutes, Title 20-A, section 15671-A for fiscal year 2016-17 is 8.23. 
Sec. G-3. Appropriations and allocations. The following appropriations and 
allocations are made. 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 0308 
Initiative: Increases funding for subsidy payments to school administrative units. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOT AL 
2015-16 
$0 
$0 
2015-16 
$0 
$0 
HOUSE AMENDMENT 
2016-17 
$22,388,645 
$22,388,645 
2016-17 
$711,355 
$711,355 
HOUSE AMENDMENT ·6" to COMMITTEE AMENDMENT "B" to S.P. 616, L.D. 1564 
EDUCATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
2015-16 
2016-17 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
$0 
$22,388,645 
$0 
$711,355 
DEPARTMENT TOTAL -ALL FUNDS 
$0 
$23,100,000 
PARTH 
Sec. H-1. PL 2015, c. 267, Pt. T, §§1 and 2 are amended to read: 
Sec. T-1. Transfer from General Fund unappropriated surplus; Fund for 
Efficient Delivery of Local and Regional Services - Administration, Other 
Special Revenue Funds account; fiscal year 2015-16. Notwithstanding any other 
provision of law, the State Controller shall transfer $750,000 $500,000 from the General 
Fund unappropriated surplus to the Fund for Efficient Delivery of Local and Regional 
Services - Administration, Other Special Revenue Funds account within the Department 
of Administrative and Financial Services no later than June 30, 2016. 
Sec. T-2. Transfer from General Fund unappropriated surplus; Fund for 
Efficient Delivery of Local and Regional Services - Administration, Other 
Special Revenue Funds account; fiscal year 2016-17. Notwithstanding any other 
provision of law, the State Controller shall transfer $750,000 $500,000 from the General 
Fund unappropriated surplus to the Fund for Efficient Delivery of Local and Regional 
Services - Administration, Other Special Revenue Funds account within the Department 
of Administrative and Financial Services no later than June 30, 2017. 
Sec. H-2. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Fund for Efficient Delivery of Local and Regional Services -Administration Z047 
Initiative: Reduces funding by $250,000 in each year of the 2016-2017 biennium. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
PART I 
Sec. 1-1. PL 2015, c. 267, Part PP is repealed. 
2015-16 
($250,000) 
($250,000) 
HOUSE AMENDMENT 
2016-17 
($250,000) 
($250,000) 
~ 
(.. 
. 
.... 
HOUSE AMENDMENT·..!>" to COMMITTEE AMENDMENT "B" to S.P. 616, L.D. 1564 
Sec. 1-2. Appropriations and allocations. The following appropriations and 
allocations are made. 
EDUCATION, DEPARTMENT OF 
Fund for the Efficient Delivery of Educational Services ZOOS 
Initiative: Eliminates one-time funding for consolidation of school administrative units. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
PART J 
2015-16 
($750,000) 
($750,000) 
2016-17 
($750,000) 
($750,000) 
Sec. J-1. Transfer; Dirigo Health Fund; General Fund. Notwithstanding any 
other provision oflaw, the State Controller shall transfer $300,000 by June 30, 2016 from 
the Dirigo Health Fund to the General Fund unappropriated surplus. 
PARTK 
Sec. K-1. Transfer from Audit Recovery, Other Special Revenue Funds. 
The State Controller shall transfer $151,331 from the Other Special Revenue Funds audit 
recovery account established in the Maine Revised Statutes, Title 5, section 1622 to the 
unappropriated surplus of the General Fund no later than June 30, 2016.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
Part A of this amendment removes from the committee amendment prov1S1ons 
limiting conformity to tax years beginning in 2015 except that nonconformity with 
federal bonus depreciation remains permanently and the Maine capital investment credit, 
which replaces bonus depreciation, remains limited to tax years beginning in 2015. 
Part B transfers $9,535,933 from the Tax Relief Fund for Maine Residents to the 
unappropriated surplus of the General Fund by the end of fiscal year 2015-16. 
Part C deappropriates funds no longer needed for debt service costs. 
Part D requires the State Controller to transfer $194,312, by June 30, 2016, from 
available balances in Other Special Revenue Funds accounts within the Department of 
Environmental Protection to the General Fund unappropriated surplus. 
Part E requires the State Controller to transfer the first $3,652,722 of unexpended 
Personal Services savings that would otherwise lapse to the Department of 
Administrative and Financial Services, General Fund Salary Plan program to the General 
Fund unappropriated surplus at the close of fiscal year 2015-16. This Part also requires 
HOUSE AMENDMENT 
HOUSE AMENDMENT..,_/;,, to COMMITTEE AMENDMENT "B" to S.P. 616, L.D. 1564 
the State Controller to transfer funding from the General Fund Salary Plan program to the 
General Fund unappropriated surplus in the event that the full $3,652,722 of Personal 
Services savings in this Part is not achieved. 
Part F requires the transfer of $21,621, 138 from the Maine Budget Stabilization Fund 
to the unappropriated surplus of the General Fund no later than June 30, 2017. 
Part G transfers the projected increases in funding to the Department of Education 
from casino revenues in the December 1, 2015 revenue forecast to the General Fund in 
fiscal year 2015-16. This Part requires the State Controller to transfer $767,507 from the 
K-12 Essential Programs and Services, Other Special Revenue Funds account in the 
Department of Education to the General Fund unappropriated surplus no later than June 
30, 2016. Part G reduces the mill rate expectation for fiscal year 2016-17 to 8.23. Part G 
also increases funding for subsidy payments to school administrative units by increasing 
appropriations and increasing allocations from projected increases in casino revenues in 
the December 1, 2015 revenue forecast. 
Part H reduces by $250,000, to $500,000 each fiscal year of the 2016-2017 biennium, 
the one-time transfer from the General Fund unappropriated surplus to the Fund for 
Efficient Delivery of Local and Regional Services - Administration, Other Special 
Revenue Funds account within the Department of Administrative and Financial Services. 
This Part also reduces the allocation in the associated Other Special Revenue Funds 
account in both fiscal years of the biennium that would have received the transfer. 
Part I repeals Public Law 2015, chapter 267, Part PP, which required the State 
Controller to transfer $750,000 in each fiscal year of the 2016-2017 biennium, as a one-
time transfer, from the General Fund unappropriated surplus to the Fund for the Efficient 
Delivery of Educational Services, Other Special Revenue Funds account within the 
Department of Education. 
This Part also eliminates one-time funding for the 
consolidation of school administrative units. 
Part J transfers the projected remaining balance of $300,000 in fiscal year 2015-16 
from the Dirigo Health Fund to the General Fund unappropriated surplus in addition to 
the transfer of $700,000 enacted in Public Law 2015, chapter 267, Part W. 
Current law directs the State Controller to conduct recovery audits of payments made 
by state agencies to vendors at least once every 10 years. Part K lapses the remaining 
balance of the audit recovery, after the amounts paid to the consultant, to the 
unappropriated surplus of the General Fund no later than June 30, 2016. 
FISCAL NOTE REQUIRED 
SPONSORED BY: . 
(:'-
-
f I\" ''Z.=), ....--.. 
\ 
\ 
\(1 
7 
(Representative TIPP 
TOWN: Orono 
HOUSE AMENDMENT 
Approved: 02/09/16 
feac: 
LD 1564 
LR 2444(05) 
An Act To Update References to the United States Internal Revenue Code of 1986 Contained in the 
Maine Revised Statutes 
Fiscal Note for House Amendment 6, to Committee Amendment "B" 
Sponsor: Rep. Tipping-Spitz of Orono 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Transfers 
General Fund 
Other Special Revenue Funds 
Dirigo Health Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
($20,313,525) 
($6, 113, 120) 
($1,000,000) 
($1,401,400) 
($28,600) 
$15,601,805 
($2,113,150) 
($300,000) 
FY 2016-17 
$7,566,347 
$22,388,645 
($288,645) 
($7, 798,840) 
($159,160) 
$22,621,138 
($1,000,000) 
$0 
Projections 
FY 2017-18 
$27,696,325 
$22,388,645 
$711,355 
($5,307 ,680) 
($107,960) 
$0 
$0 
$0 
Projections 
FY 2018-19 
$26,936,825 
$22,388,645 
$711,355 
($4,548, 180) 
($92,820) 
$0 
$0 
$0 
Part A proposes to conform to certain federal tax laws for tax years beginning on or after January 1, 2015 and to conform 
to bonus depreciation for the 2015 tax year only. Compared to Committee Amendment B, this amendment would 
incrementally reduce General Fund revenue by $1,401,400 in fiscal year 2015-16 and by $7,798,840 in fiscal year 2016-
17. It would also incrementally reduce transfers to the Local Government Fund by $28,600 in fiscal year 2015-16 and by 
$159,160 in fiscal year 2016-17. 
Part B transfers $9,535,933 from the Tax Relief Fund for Maine Residents to the unappropriated surplus of the General 
Fund in fiscal year 2015-16. 
Part C deappropriates $6,113,120 from the Office of the Treasurer of the State in fiscal year 2015-16 to reflect savings in 
debt service. 
LR2444(05)- Fiscal Note - Page 1 of2 
Part D transfers $194,312 in fiscal year 2015-16 from various Department of Environmental Protection Other Special 
Revenue Funds accounts chosen by the department prior to the close of fiscal year 2015-16 to the unappropriated surplus 
of the General Fund. 
Part Elapses $3,652,722 in fiscal year 2015-16 from Personal Services appropriations that would otherwise lapse to the 
Salary Plan account in the Department of Administrative and Financial Services. 
Part F transfers $21,621,138 from the Maine Budget Stabilization Fund to the unappropriated surplus of the General Fund 
not later than June 30, 2017. 
Part G transfers $767,507 in fiscal year 2015-16 from the K-12 Essential Programs and Services, Other Special Revenue 
Funds account in the Department of Education to the General Fund. Part G also sets the full value education mill rate in 
fiscal year 2016-17 at 8.23 mills. Part G appropriates $22,388,645 per year beginning in fiscal year 2016-17 to the 
General Purpose Aid for Local Schools program within the Department of Education to provide additional subsidy for 
local schools. Finally, Part G allocates $711,355 per year beginning in fiscal year 2016-17 due to increased projections in 
table games and slot machine revenue that support K-12 public education. 
Part H deallocates $250,000 in fiscal year 2015-16 and $250,000 in fiscal year 2016-17 from the Fund for Efficient 
Delivery of Local and Regional Services - Administration program and repeals transfers from the General Fund to the 
Fund for Efficient Delivery of Local and Regional Services -Administration program. 
Part I repeals the provision in Public Law 2015, c. 267, Part PP that required the State Controller to transfer $750,000 in 
fiscal year 2015-16 and $750,000 in fiscal year 2016-17 from the General Fund unappropriated surplus to the Fund for 
Efficient Delivery of Educational Services Other Special Revenue Funds account and includes corresponding 
deallocations to the program account. 
Part J transfers $300,000 from the Dirigo Health Fund to the unappropriated surplus of the General Fund during fiscal 
year 2015-16. 
Part K transfers $151,331 from the Audit Recovery Other Special Revenue Funds account to the unappropriated surplus 
of the General Fund during fiscal year 2015-16. 
LR2444(05) - Fiscal Note - Page 2 of2