Sec. 1. 36 MRSA §5122, sub-§2, śM, as amended by PL 2001, c. 396, §34 and affected by §50, is further amended to read:

M. An amount, for For each taxpayer who is a primary recipient of benefits under an employee retirement plan or who is 65 years of age or older on the last day of the taxable year who has interest, dividends or net capital gains taxable in this State that are included in federal adjusted gross income modified as otherwise provided by this section, an amount that is the lesser of:

(1) Six thousand dollars reduced by the total amount of the primary recipient's social security benefits and railroad retirement benefits paid by the United States, but not less than $0 The following amounts reduced by the total amount of the primary recipient's social security benefits and railroad retirement benefits paid by the United States, but not less than $0, for each tax year beginning in the following years. The reduction does not apply to benefits paid under a military retirement plan; or:

(a)__2003, $8,000;

(b)__2004, $9,000;

(c)__2005, $10,000;

(d)__2006, $11,000;

(e)__2007, $12,000;

(f)__2008, $13,500;

(g)__2009, $15,000;

(h)__2010, $16,500; and

(i)__2011, $18,000.

For tax years beginning January 1, 2012, the deduction under this subparagraph is equal to the amount of the maximum social security benefit reduced by the total amount of social__ security benefits and railroad retirement benefits actually received by the taxpayer, but not less than $0.__The State Tax Assessor by September 15th of each year shall determine the amount of the deduction and incorporate the change, if any,