Sec. 1. 36 MRSA §5122, sub-§2, ¶¶R and S, as enacted by PL 2001, c. 714, Pt. AA, §4, are amended to read:

R. For tax years beginning in 2005, 2006 or 2007, an amount equal to 1/3 of any amount added back to federal adjusted gross income by the taxpayer for the 2003 tax year pursuant to subsection 1, paragraph N, except with respect to 3-year property, in which case this paragraph does not apply to 2006 or 2007 tax years and the amount to be subtracted pursuant to this paragraph in the 2005 tax year is an amount equal to the amount added back pursuant to subsection 1, paragraph N for tax years beginning in 2003; and

S. For tax years beginning in 2006, 2007 or 2008, an amount equal to 1/3 of any amount added back to federal adjusted gross income by the taxpayer for the 2004 tax year pursuant to subsection 1, paragraph N, except with respect to 3-year property, in which case this paragraph does not apply to 2007 or 2008 tax years and the amount to be subtracted pursuant to this paragraph in the 2006 tax year is in an amount equal to the amount added back pursuant to subsection 1, paragraph N for tax years beginning in 2004.; and

Sec. 2. 36 MRSA §5122, sub-§2, ¶T is enacted to read:

T.__The amount of contributions, up to a maximum of $10,000 per account, made under a qualified state tuition program established by any state under Section 529 of the Code.

SUMMARY

This bill provides an income tax deduction of up to $10,000 per account for contributions made to any qualified state tuition program, including the Maine College Savings Program, that is eligible for preferred tax treatment under federal law.