Net Operating Loss Recovery Adjustment

Enter below any amount of net operating loss carried to the tax year that has been previously used to offset the modifications provided by 36 M.R.S.A. § 5122(1). For more information and examples, go to the MRS Web site at www.maine.gov/revenue.

Maine State Retirement Contributions

Enter the amount of your 2005 Maine State Retirement Contributions below. To calculate this amount, subtract your federal wages from your state wages appearing on your 2005 State of Maine W-2 form. These contributions are tax deferred for federal tax, but are subject to Maine income tax.

Fiduciary Adjustment

If applicable, enter your share of the fiduciary adjustment (36 M.R.S.A. § 5122(3)).

Bonus Depreciation/Section 179 Expense Add-back

For tax years beginning in 2003, federal adjusted gross income must be increased by the net effect of the following amounts reflected in federal adjusted gross income:

1. 30% bonus depreciation deduction claimed in accordance with Section 101 of the federal Jobs Creation and Worker Assistance Act of 2002, Public Law 107-147;
2. 50% bonus depreciation deduction claimed in accordance with Section 201 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27; and,
3. increase in section 179 expense due to 2003 federal law changes in Section 202 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 (the deduction limit increase from $25,000 to $100,000; the phase-out threshold increase from $200,000 to $400,000; and certain off-the-shelf computer software includable as eligible property for purposes of the section 179 deduction). The amount of this modification is determined by first recalculating the depreciation deduction and section 179 expense on federal Form 4562 exclusive of all bonus depreciation and the section 179 expense increases listed above.

Enter the difference between this recalculated depreciation/section 179 expense amount and the original depreciation/section 179 expense claimed for federal income tax purposes. For more information and examples go to the MRS Web site at www.maine.gov/revenue.

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