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_A_S351 (Senate)
Amends: 36 MRSA §5122, 36 MRSA §5200-A, 36 MRSA §5219-N

COMMITTEE AMENDMENT "A " 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 bill by striking out all of section 2 and inserting the following: 
'Sec. 2. 36 MRSA §5122, sub-§1, 1Q, as enacted by PL 2003, c. 20, Pt. II, §2, is 
repealed. 
Sec. 3. 36 MRSA §5122, sub-§1, ,rJI, as corrected by RR 2015, c. 1, §41, is 
amended to read: 
II. For taxable years beginning in 2014: 
(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-MM 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 l 68(k) 
with respect to property for which a credit is not claimed under section 
5219-MM; aoo 
Sec. 4. 36 MRSA §5122, sub-§1, ,rJJ, as enacted by PL 2015, c. 267, Pt. DD, 
§8, is amended to read: 
JJ. For tax years beginning on or after January 1, 2016, an amount equal to the 
taxpayer base multiplied by the following fraction: 
(1) 
For single individuals and married persons filing separate returns, the 
numerator is the taxpayer's Maine adjusted gross income less $70,000, except 
that the numerator may not be less than zero, and the denominator is $75,000. In 
no case may the fraction contained in this subparagraph produce a result that is 
more than one. The $70,000 amount used to calculate the numerator in this 
COMMITTEE AMENDMENT 
\\, ~, £>, 
COMMITTEE AMENDMENT" A" to S.P. 616, L.D. 1564 
subparagraph must be adjusted for inflation in accordance with section 5403, 
subsection 3; 
(2) For individuals filing as heads of households, the numerator is the taxpayer's 
Maine adjusted gross income less $105,000, except that the numerator may not 
be less than zero, and the denominator is $112,500. In no case may the fraction 
contained in this subparagraph produce a result that is more than one. The 
$105,000 amount used to calculate the numerator in this subparagraph must be 
adjusted for inflation in accordance with section 5403, subsection 3; or 
(3) 
For individuals filing married joint returns or surviving spouses, the 
numerator is the taxpayer's Maine adjusted gross income less $140,000, except 
that the numerator may not be less than zero, and the denominator is $150,000. 
In no case may the fraction contained in this subparagraph produce a result that is 
more than one. The $140,000 amount used to calculate the numerator in this 
subparagraph must be adjusted for inflation in accordance with section 5403, 
subsection 3. 
For purposes of this paragraph, "taxpayer base" means either the taxpayer's 
applicable standard deduction amount for the taxable year determined under section 
5124-B or, if itemized deductions are claimed, the taxpayer's itemized deductions 
claimed for the taxable year determined under section 5125-:-; and 
Sec. 5. 36 MRSA §5122, sub-§1, ~ 
is enacted to read: 
KK. For taxable years beginning on or after January 1, 2015: 
{ 1) 
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 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. 
Sec. 6. 36 MRSA §5122, sub-§2, ,rMM, as amended by PL 2015, c. 1, §6, is 
further amended to read: 
MM. For taxable years beginning on or after January 1, 2014, 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 taxable year beginning in 2013 for which an 
addition was required under subsection 1, paragraph HR, subparagraph (2) for the 
taxable year beginning in 2013. 
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 HH, 
COMMITTEE AMENDMENT 
\\,~,Co, 
COMMITTEE AMENDMENT" A" to S.P. 616, L.D. 1564 
subparagraph (2) 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 HH, 
subparagraph (2) for the same property; ana 
Sec. 7. 36 MRSA §5122, sub-§2, ~N, as enacted by PL 2015, c. 1, §7, is 
amended to read: 
NN. For taxable years beginning on or after January 1, 2015, 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 taxable year beginning in 2014 for which an 
addition was required under subsection 1, paragraph II, subparagraph (2) for the 
taxable year beginning in 2014. 
Upon the taxable disposition of property to which this paragraph applies, the amount 
of any gain or loss ineluctable 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 II, 
subparagraph (2) 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 II, subparagraph 
(2) for the same property-:-; and 
Sec. 8. 36 MRSA §5122, sub-§2, ,oo is enacted to read: 
00. For taxable years beginning on or after January 1, 2016. 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 taxable year for which an addition was required 
under subsection 1. paragraph KK. subparagraph (2) for the taxable year. 
Upon the taxable disposition of property to which this paragraph applies. the amount 
of any gain or loss ineluctable 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 KK. 
subparagraph (2) 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 KK. 
subparagraph (2) for the same property. 
Sec. 9. 36 MRSA §5200-A, sub-§1, ,AA, as amended by PL 2015, c. 1, §9, is 
further amended to read: 
AA. For taxable years beginning in 2013: 
COMMITTEE AMENDMENT 
'i'· o\ £,. 
COMMITTEE AMENDMENT" A" to S.P. 616, L.D. 1564 
( 1) 
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 placed in service in the State during the taxable year for 
which a credit is claimed under section 5219-JJ 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-JJ; 
aft0 
Sec. 10. 36 MRSA §5200-A, sub-§1, ~B, as enacted by PL 2015, c. 1, §10, is 
amended to read: 
BB. For taxable years beginning in 2014: 
(1) 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 placed in service in the State during the taxable year for 
which a credit is claimed under section 5219-MM 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-MM,·; and 
Sec. 11. 36 MRSA §5200-A, sub-§1, 1CC is enacted to read: 
CC. For taxable years beginning on or after January 1, 2015: 
( 1) 
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 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. 
Sec. 12. 36 MRSA §5200-A, sub-§2, ,V, as amended by PL 2015, c. 1, §12, is 
further amended to read: 
Y. For taxable years beginning on or after January 1, 2014, 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 taxable year beginning in 2013 for which an 
addition was required under subsection 1, paragraph AA, subparagraph (2) for the 
7 
taxable year beginning in 2013. 
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 
COMMITTEE AMENDMENT 
"'lt~" 
~-.~~· 
COMMITTEE AMENDMENT" A" to S.P. 616, L.D. 1564 
modification for such property under subsection 1, paragraph AA, subparagraph (2) 
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 AA, 
subparagraph (2) for the same property; aoo 
Sec. 13. 36 MRSA §5200-A, sub-§2, 1Z, as enacted by PL 2015, c. 1, §13, is 
amended to read: 
Z. For taxable years beginning on or after January 1, 2015, 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 taxable year beginning in 2014 for which an 
addition was required under subsection 1, paragraph BB, subparagraph (2) for the 
taxable year beginning in 2014. 
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 BB, subparagraph (2) 
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 BB, subparagraph 
(2) for the same property~; and 
Sec. 14. 36 MRSA §5200-A, sub-§2, 1AA is enacted to read: 
AA. For taxable years beginning on or after January 1, 2016, 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 taxable year for which an addition was required 
under subsection 1, paragraph CC, subparagraph (2) for the 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 CC, subparagraph (2) 
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 CC, subparagraph 
(2) for the same property. 
Sec. 15. 36 MRSA §5219-NN is enacted to read: 
COMMITTEE AMENDMENT 
i. d\ to, 
COMMITTEE AMENDMENT "A "to S.P. 616, L.D. 1564 
§5219-NN. Maine capital investment credit for 2015 and after 
1. Credit allowed. A taxpayer that claims a depreciation deduction under the Code, 
Section 168(k) for property placed in service in the State during a taxable year that begins 
on or after January 1, 2015 is allowed a credit as follows: 
A. A taxable corporation is allowed a credit against the taxes imposed by this Part in 
an amount equal to 9% of the amount of the net increase in the depreciation 
deduction reported as an addition to income for the taxable year under section 
5200-A, subsection 1. paragraph CC, subparagraph (1) with respect to that property, 
except for excluded property under subsection 2; or 
B. An individual is allowed a credit against the taxes imposed by this Part in an 
amount equal to: 
(1) For taxable years beginning in 2015, 8% of the amount of the net increase in 
the depreciation deduction reported as an addition to income for the taxable year 
under section 5122, subsection 1, paragraph KK, subparagraph (1) with respect to 
that property, except for excluded property under subsection 2; and 
(2) For taxable years beginning on or after January 1, 2016, 7% of the amount of 
the net increase in the depreciation deduction reported as an addition to income 
for the taxable year under section 5122, subsection 1, paragraph KK, 
subparagraph (1) with respect to that property, except for excluded property 
under subsection 2. 
2. Certain property excluded. The following property is not eligible for the credit 
under this section: 
A. 
Property owned by a public utility as defined by Title 35-A, section 102, 
subsection 13; 
B. Property owned by a person that provides radio paging services as defined by 
Title 35-A, section 102, subsection 15; 
C. Property owned by a person that provides mobile telecommunications services as 
defined by Title 35-A, section 102, subsection 9-A; 
D. Property owned by a cable television company as defined by Title 30-A, section 
2001, subsection 2; 
E. 
Property owned by a person that provides satellite-based direct television 
broadcast services; 
F. 
Property owned by a person that provides multichannel, multipoint television 
distribution services; and 
G. 
Property that is not in service in the State for the entire 12-month period 
following the date it is placed in service in the State. 
3. Limitations; carry-forward. The credit allowed under subsection 1 may not 
reduce the tax otherwise due under this Part to less than zero. Any unused portion of the 
credit may be carried forward to the following year or years for a period not to exceed 20 
years. 
COMMITTEE AMENDMENT 
~- ~, <o-
COMMITTEE AMENDMENT" flt" to S.P. 616, L.D. 1564 
4. Recapture. The credit allowed under this section must be fully recaptured to the 
extent claimed by the taxpayer if the property forming the basis of the credit is not used 
in the State for the entire 12-month period following the date it is placed in service in the 
State. The credit must be recaptured by filing an amended return in accordance with 
section 5227-A for the tax year in which that property was used to calculate the credit 
under this section. The amended return must reflect the credit disallowed and the income 
modifications required by section 5122, subsection 1, paragraph KK and section 5200-A, 
subsection l, paragraph CC with respect to that property. 
Sec. 16. Application. That section of this Act that amends the Maine Revised 
Statutes, Title 36, section 111, subsection 1-A applies to tax years beginning on or after 
January 1, 2015 and to any prior tax years as specifically provided by the United States 
Internal Revenue Code of 1986 and amendments to that Code as of December 31, 2015. 
That section of this Act that repeals the Maine Revised Statutes, Title 36, section 5122, 
subsection 1, paragraph Q applies to tax years beginning on or after January 1, 2016.' 
SUMMARY 
This amendment repeals, for taxable years beginning on or after January 1, 2016, the 
addition modification that decouples Maine's individual income tax law from the federal 
deduction for qualified tuition and related expenses under the United States Internal 
Revenue Code of 1986, Section 222. 
This amendment decouples the Maine individual and corporate income taxes from the 
federal bonus depreciation deductions for taxable years beginning on or after January 1, 
2015. 
In addition, it provides a Maine capital investment credit for taxable years 
beginning on or after January 1, 2015 with respect to depreciable property placed in 
service in Maine. 
The credit is equal to 9% of the amount of the net increase in 
depreciation attributable to the depreciation deduction claimed by the taxpayer under the 
United States Internal Revenue Code of 1986, Section 168(k) with respect to property 
placed in service in the State during the taxable year for taxable corporations; for 
individuals the credit is 8% of such amount for tax years beginning in 2015 and is 7% for 
tax years beginning on or after January 1, 2016. 
FISCAL N'OTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/01/16 
Mac.!-
LD 1564 
LR 2444(02) 
An Act To Update References to the United States Internal Revenue Code of 1986 Contained in the 
Maine Revised Statutes 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment '~"(S ... ~ S ~ 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
FY 2016-17 
Projections 
FY 2017-18 
$18,974,760 
$19,404,000 
$12,725,300 
($18,974,760) 
($19,404,000) 
($12,725,300) 
Projections 
FY 2018-19 
$9,600,080 
Other Special Revenue Funds 
($387,240) 
($396,000) 
($259,700) 
($9,600,080) 
($195,920) 
Fiscal Detail and Notes 
This legislation proposes to conform to certain federal tax laws for tax years beginning on or after January 1, 2015 
and would result in a loss of General Fund revenue of $18,974,760 in fiscal year 2015-16 and $19,404,000 in fiscal 
year 2016-17. It would also result in a reduction in transfers to the Local Government Fund of$387,240 in fiscal year 
2015-16 and $396,000 in fiscal year 2016-17. 
LR2444(02) - Fiscal Note - Page I of I