An Act To Protect the Income of Service Workers
Maine Legislature, Session 127, LD 0367
Committee: Taxation
Sponsors: BRAKEY, DAVIS, CRAFTS, GUERIN, HICKMAN, SANDERSON, VACHON
Amends: 36 MRSA §5122

Legislative Document 
No. 367 
S.P. 135 
In Senate, February 12, 2015 
An Act To Protect the Income of Service Workers 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator BRAKEY of Androscoggin. 
Cosponsored by Senator: DAVIS of Piscataquis, Representatives: CRAFTS of Lisbon, 
GUERIN of Glenburn, HICKMAN of Winthrop, SANDERSON of Chelsea, VACHON of 
Scarborough. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5122, sub-§2, ¶LL, as repealed and replaced by PL 2013, c. 
588, Pt. A, §46 and affected by §47, is amended to read: 
LL.  To the extent included in federal adjusted gross income and to the extent 
otherwise subject to Maine income tax, an amount equal to military compensation 
earned during the taxable year for service performed outside of this State pursuant to 
written military orders: 
(1)  For active duty service in the active components of the United States Army, 
Navy, Air Force, Marines or Coast Guard by a service member whose permanent 
duty station during such service is located outside of this State; and 
(2)  For active duty service in the active or reserve components of the United 
States Army, Navy, Air Force, Marines or Coast Guard or in the Maine National 
Guard by a service member in support of a federal operational mission or a 
declared state or federal disaster response when the orders are either at federal 
direction or at the direction of the Governor of this State; and 
Sec. 2.  36 MRSA §5122, sub-§2, ¶MM, as enacted by PL 2013, c. 368, Pt. TT, 
§8, is 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 HH, 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, 
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.; and 
Sec. 3.  36 MRSA §5122, sub-§2, ¶NN is enacted to read: 
NN.  To the extent included in federal adjusted gross income, cash tips received from 
customers. 
Sec. 4.  Application.  This Act applies to tax years beginning on or after January 1, 
2015. 
SUMMARY 
This bill exempts from Maine income tax all tips included in federal adjusted gross 
income.