LD 1496
pg. 36
Page 35 of 41 An Act To Reduce Maine's Health Insurance Rates and Expand Consumer Choice ... Page 37 of 41
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LR 541
Item 1

 
PART E

 
Sec. E-1. 36 MRSA §5122, sub-§1, ¶S, as corrected by RR 2003, c. 2,
§117, is amended to read:

 
S. For tax years beginning in 2003, 2004 and 2005, the
amount received from the National Health Service Corps
Scholarship Program and the Armed Forces Health Professions
Scholarship and Financial Assistance program to the extent
excluded from federal gross income in accordance with the
Code, Section 117; and

 
Sec. E-2. 36 MRSA §5122, sub-§1, ¶V, as amended by PL 2003, c. 705, §8,
is further amended to read:

 
V. For tax years beginning on or after January 1, 2003 and
before January 1, 2006, the amount claimed as a federal
income adjustment for student loan interest under the Code,
Section 62 (a)(17), but only for interest paid after 60
months from the start of the loan repayment period; and.

 
Sec. E-3. 36 MRSA §5122, sub-§1, ¶W, as enacted by PL 2003, c. 705,
§9, is repealed.

 
Sec. E-4. 36 MRSA §5122, sub-§2, ¶Q, as corrected by RR 2003, c. 1,
§38, is amended to read:

 
Q. A fraction of any amount previously added back by the
taxpayer to federal adjusted gross income pursuant to
subsection 1, paragraph N.

 
(1) With respect to property first placed in service
during taxable years beginning in 2002, the adjustment
under this paragraph is available for each year during
the recovery period, beginning 2 years after the
beginning of the taxable year during which the property
was first placed in service. The fraction is equal to
the amount added back under subsection 1, paragraph N
with respect to the property, divided by the number of
years in the recovery period minus 2.

 
(2) With respect to all other property, for the taxable year
immediately following the taxable year during which the property
was first placed in service, the fraction allowed by this
paragraph is equal to 5% of the amount added back under
subsection 1, paragraph N with respect to the property. For each
subsequent taxable year during the recovery period, the fraction
is equal to 95% of the amount added back under


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