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_S352 (Senate)
Amends: 36 MRSA §5122, 36 MRSA §5125, 36 MRSA §5200-A, 36 MRSA §5219-S, 36 MRSA §5219-N

COMMITTEE AMENDMENT "e," 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, ,rII, as corrected by RR 2015, c. 1, §41, is 
amended to read: 
IL 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 l 68(k) 
with respect to property for which a credit is not claimed under section 
5219-MM; ane 
Sec. 3. 36 MRSA §5122, sub-§1, 1JJ, 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 
subparagraph must be adjusted for inflation in accordance with section 5403, 
subsection 3; 
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(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~_;_ 
Sec. 4. 36 MRSA §5122, sub-§1, ,r,rKK to MM are enacted to read: 
K.K. 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 l 68(k) 
with respect to property for which a credit is not claimed under section 5219-NN; 
LL. An amount equal to the sum of the following: 
(1) 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); and 
(2) For taxable years beginning on or after January 1, 2016, an amount equal to 
the net increase in aggregate cost under Section 179 of the Code arising from 
amendments to the Code enacted in the federal Consolidated Appropriations Act, 
2016, Public Law 114-113 applicable to the taxable year; and 
MM. For taxable years beginning on or after January 1, 2016, the amount of the 
deduction claimed pursuant to the Code, Section 62(a)(2)(D) for eligible educator 
expenses. 
Sec. 5. 36 MRSA §5122, sub-§2, ,rMM, as amended by PL 2015, c. 1, §6, is 
further amended to read: 
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COMMITTEE AMENDMENT" B "to S.P. 616, L.D. 1564 
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 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 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; aaa 
Sec. 6. 36 MRSA §5122, sub-§2, ,rNN, 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 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 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~; 
Sec. 7. 36 MRSA §5122, sub-§2, 1100 and PP are 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 l 68(k) not been claimed with respect to such 
property placed in service during the taxable year beginning in 2015 for which an 
addition was required under subsection 1, paragraph KK, subparagraph (2) for the 
taxable year beginning in 2015. 
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COMMITIEE AMENDMENT" e)" to S.P. 616, L.D. 1564 
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 I, 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 I, paragraph KK, 
subparagraph (2) for the same property; and 
PP. For taxable years beginning on or after January 1, 2017, an amount equal to the 
net increase in: 
(1) 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 LL, subparagraph (1) for the applicable 
taxable year; and 
(2) The depreciation deduction allowable under the Code, Sections 167 and 168 
that would have been applicable to that property had the increased cost under the 
Code, Section 179 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, subparagraph (2) 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 I, 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. 
Sec. 8. 36 MRSA §5125, sub-§3, 10, as amended by PL 2015, c. 267, Pt. DD, 
§16 and amended by c. 340, §1 and affected by §5, is repealed and the following enacted 
in its place: 
D. 
Reduced by any amount attributable to interest or expenses incurred in the 
production of income exempt from tax under this Part; 
Sec. 9. 36 MRSA §5125, sub-§3, 1E, as repealed by PL 2015, c. 267, Pt. DD, 
§ 17 and amended by c. 340, §2 and affected by §5, is repealed. 
Sec. 10. 36 MRSA §5125, sub-§3, ,G, as enacted by PL 2015, c. 340, §3 and 
affected by §5, is amended to read: 
G. Reduced by the amount of federal itemized deductions included in the base for 
calculating the credit under section 5218-A~; and 
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Sec. 11. 36 MRSA §5125, sub-§3, ~ 
is enacted to read: 
H. For tax years beginning on or after January 1, 2016, reduced by any amount 
attributable to mortgage insurance premiums treated as qualified residence interest 
under the Code, Section 163. 
Sec. 12. 36 MRSA §5200-A, sub-§1, ,rAA, as amended by PL 2015, c. 1, §9, is 
further amended to read: 
AA. For taxable years beginning in 2013: 
(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; 
aRe 
Sec. 13. 36 MRSA §5200-A, sub-§1, ,rBB, 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.,.; 
Sec. 14. 36 MRSA §5200-A, sub-§1, ,r,rcc and DD are enacted to read: 
CC. 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 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; 
and 
DD. An amount equal to the sum of the following: 
(1) 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 
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COMMITTEE AMENDMENT" e" to S.P. 616, L.D. 1564 
depreciation deduction claimed by the taxpayer for the taxable year under the 
Code, Section 168(k); and 
(2) For taxable years beginning on or after January 1, 2016, an amount equal to 
the net increase in aggregate cost under Section 179 of the Code arising from 
amendments to the Code enacted in the federal Consolidated Appropriations Act, 
2016, Public Law 114-113 applicable to the taxable year. 
Sec. 15. 36 MRSA §5200-A, sub-§2, ,rY, 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 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 AA, 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 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 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; aB.tl 
Sec. 16. 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-:-_;_ 
Sec. 17. 36 MRSA §5200-A, sub-§2, 11AA and BB are enacted to read: 
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COMMITTEE AMENDMENT "f> "to S.P. 616, L.D. 1564 
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 beginning in 2015 for which an 
addition was required under subsection 1, paragraph CC, subparagraph (2) for the 
taxable year beginning in 2015. 
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; and 
BB. For taxable years beginning on or after January 1, 2017, an amount equal to the 
net increase in: 
(1) 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 DD, subparagraph (1) for the applicable 
taxable year; and 
(2) The depreciation deduction allowable under the Code, Sections 167 and 168 
that would have been applicable to that property had the increased cost under the 
Code, Section 179 not been claimed with respect to such property placed in 
service during the applicable tax year for which an addition was required under 
subsection 1, paragraph DD, subparagraph (2) for the applicable tax 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 pw:poses 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. 
Sec. 18. 36 MRSA §5219-S, sub-§5 is enacted to read: 
5. Tax years after 2017. For pw:poses of calculating the credit under this section for 
tax years beginning on or after January 1, 2018, the federal earned income credit for 
individuals with 3 or more qualifying children must be determined using 40% as the 
credit percentage under the Code, Section 32(b)(l), the federal earned income credit 
phase-out amount for individuals filing joint returns must be determined in accordance 
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with the Code, Section 32(b)(2)(A) and the Code, Section 32(b)(2)(B) must be 
disregarded. 
Sec. 19. 36 MRSA §5219-NN is enacted to read: 
§5219-NN. Maine capital investment credit for 2015 
1. Credit allowed. A taxpayer that claims a depreciation deduction under the Code, 
Section l 68(k) for property placed in service in the State during a taxable year beginning 
in 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 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. 
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. 
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 
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COMMITIEE AMENDMENT .. e," to S.P. 616, L.D. 1564 
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 1, paragraph CC with respect to that property. 
Sec. 20. 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.' 
SUMMARY 
This amendment is the minority report the committee. It provides conformity with 
the Internal Revenue Code of 1986 in the same manner as the majority report but only for 
tax years beginning in 2015. 
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 in 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 l 68(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. 
The amendment also decouples Maine's individual and corporate income tax from 
the Code, Section 179 expensing deductions for tax years beginning on or after January 1, 
2016. It enacts addition and subtraction modifications to reverse any increase allowed at 
the federal level for the first year the property is placed in service, and then to allow 
depreciation deductions for the remainder of the asset's life. 
The amendment decouples Maine's individual income tax from the teacher expense 
deduction under the Code, Section 62(a)(2)(D) by requiring an addition modification in 
the amount of the federal deduction. 
The amendment disallows for Maine itemized deduction purposes the federal 
deduction for mortgage insurance premiums treated as qualified residence interest. 
For taxable years beginning after 2017, the amendment decouples the Maine earned 
income tax credit from the increased federal 45% earned income tax credit rate for 
taxpayers with 3 or more qualifying children and from the higher phase-out thresholds for 
married individuals filing joint returns. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/02/16 
;t;?ae 
LD 1564 
LR2444(03) 
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-~Z...) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
FY 2016-17 
$15,802,500 
$1,034,880 
Projections 
FY2017-18 
($2,333,380) 
Projections 
FY 2018-19 
($1,712,060) 
Other Special Revenue Funds 
($15,802,500) 
($322,500) 
($1,034,880) 
($21,120) 
$2,333,380 
$47,620 
$1,712,060 
$34,940 
Fiscal Det?il and Notes 
This legislation proposes to conform to certain federal tax laws for tax year 2015 only and would result in a loss of 
General Fund revenue of $15,802,500 in fiscal year 2015-16 and $1,034,880 in fiscal year 2016-17. It would also 
result in a reduction in transfers to the Local Government Fund of $322,500 in fiscal year 2015-16 and $21,120 in 
fiscal year 2016-17. 
LR2444(03) - Fiscal Note - Page 1 of 1 
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