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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 |
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| | | Sec. 3. 36 MRSA §5122, sub-§2, ¶T is enacted to read: |
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| | | T.__For tax years beginning on or after January 1, 2004, | | an amount equal to benefits paid under a military | | retirement plan.__For purposes of this paragraph, | | "military retirement plan" means benefits received as a | | result of service in the active or reserve components of | | the Army, Navy, Air Force, Marines or Coast Guard. |
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| | | This bill exempts from the state income tax all military | | pension benefits received by a Maine resident as a result of | | service in the active or reserve components of the Army, Navy, | | Air Force, Marines or Coast Guard. Since the effect of this | | bill is to totally exempt military pension benefits, the | | express exclusion of military pension benefits from the offset | | for social security and railroad retirement benefits from the | | $6,000 deduction allowed for other pension plans is removed. |
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