H.P. 1053 - L.D. 1484
An Act to Conform the Maine Tax Laws for 1998 With the United States Internal Revenue Code
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the 90-day period would delay the processing of the 1998 income tax returns; and
Whereas, legislative action is immediately necessary to ensure continued and efficient administration of the Maine income tax law and certain other state taxes; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §111, sub-§1-A, as amended by PL 1997, c. 596, §1 and affected by §2, is further amended to read:
1-A. Code. "Code" means the United States Internal Revenue Code of 1986 and amendments to that Code as of December 31, 1997 1998.
Sec. 2. 36 MRSA §5122, sub-§1, ¶J, as amended by PL 1997, c. 746, §2 and affected by §24, is further amended to read:
J. The amount claimed as a business expense that is included in the investment credit for the high-technology investment tax credit; and
Sec. 3. 36 MRSA §5122, sub-§1, ¶K, as enacted by PL 1997, c. 746, §3 and affected by §24, is amended to read:
K. For income tax years beginning on or after January 1, 1997, all items of loss, deduction and other expense of a financial institution subject to the tax imposed by section 5206, to the extent that those items are passed through to the taxpayer for federal income tax purposes, including, if the financial institution is an S corporation, the taxpayer's pro rata share and, if the financial institution is a partnership or limited liability company, the taxpayer's distributive share. An addition may not be made under this paragraph for any losses recognized on the disposition by a taxpayer of an ownership interest in a financial institution.; and
Sec. 4. 36 MRSA §5122, sub-§1, ¶L is enacted to read:
L. For income tax years beginning on or after January 1, 1999, but before January 1, 2000, an amount equal to 25% of any amount allowed to a self-employed individual as a deduction for health insurance expenses pursuant to Section 162(l) of the Code; and for income tax years beginning on or after January 1, 2000, but before January 1, 2002, an amount equal to 16.67% of any amount allowed as a deduction pursuant to Section 162(l) of the Code.
Sec. 5. Application. This Act applies to tax years beginning on or after January 1, 1998.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective June 17, 1999.
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