2. Spouses. Spouses, both of whom are required to file returns under this Part, are allowed to claim itemized deductions from Maine adjusted gross income only if both do so. The Their total of itemized deductions allowable for determining from federal income tax adjusted gross income, as adjusted modified by this section subsection 3, may be taken by either spouse or divided between them, as they may elect, if their federal income tax is determined on a joint return but their tax pursuant to under this Part is determined on separate returns.

3. Amount. The sum of an individual's allowable federal itemized deductions from federal adjusted gross income must be:

A. Reduced by any amount representing attributable to income taxes imposed by this State or any other taxing jurisdiction and interest or expenses incurred in the production of income exempt from tax under this Part;

B. Increased by any amount of interest or expense incurred in the production of income taxable under this Part but exempt from federal income tax, and which has that was not been deducted in determining the individual's federal adjusted gross taxable income; and

C. Reduced by any amount of deduction related attributable to income taxable to financial institutions under chapter 819.;

D.__Reduced by any amount attributable to interest or expenses incurred in the production of income exempt from tax under this Part; and

E.__Reduced by the amount attributable to any contribution that qualified for and was actually utilized as a credit under section 5216-C.

Sec. 35. 36 MRSA §5160, as amended by PL 1993, c. 395, §19, is further amended to read:

§5160. Imposition of tax

The tax is imposed, at the rates provided by section 5111 for resident single individuals, upon the Maine taxable income of estates and trusts. The tax must be paid by the fiduciary.

Sec. 36. 36 MRSA §5163, as enacted by P&SL 1969, c. 154, §F1, is amended to read: