Sec. 32. 36 MRSA §5122, sub-§2, ¶H, as amended by PL 2001, c. 559, Pt. J, §2, is further amended to read:

H. For each taxable year subsequent to the year of the loss, an amount equal to the absolute value of the net operating loss arising from tax years beginning on or after January 1, 1989, but before January 1, 1993, and the absolute value of the amount of any net operating loss arising from tax years beginning on or after January 1, 2002, for which federal adjusted gross income was increased in accordance with subsection 1, paragraph H and that pursuant to the Code, Section 172 was carried back for federal income tax purposes, less the absolute value of loss used in the taxable year of loss to offset any addition modification required by subsection 1, but only to the extent that:

(1) Maine taxable income is not reduced below zero;

(2) The taxable year is within the allowable federal period for carry-over; and

(3) The amount has not been previously used as a modification pursuant to this subsection;

Sec. 33. 36 MRSA §5122, sub-§2, ¶J, as amended by PL 2001, c. 559, Pt. GG, §11 and affected by §26, is further amended to read:

J. To the extent included in federal adjusted gross income, any amount constituting a qualified withdrawal distribution from an account established pursuant to Title 20-A, chapter 417-E and used for paying higher education expenses of the designated beneficiary of that account;

Sec. 34. 36 MRSA §5125, as amended by PL 1999, c. 708, §37, is further amended to read:

§5125. Itemized deductions

1. General. If an An individual who has claimed itemized deductions from federal adjusted gross income in determining the individual's federal taxable income for the taxable year, the individual is entitled in determining the tax under this Part to