For more information on Maine income modifi cations, visit www.maine.gov/revenue/forms.
Line 1. ADDITIONS. Also include the taxpayer’s distributive share of addition modifi cation items from partnerships, S corporations and other pass-through entities.
Line 1a. Enter the income from municipal and state bonds, other than Maine, that is not included in your federal adjusted gross income (i.e., enter bond interest from City of New York but not Portland, Maine).
Line 1b. Net Operating Loss Recovery Adjustment. Enter on this line anyamount of federal net operating loss carry forward that has been previously
used to offset Maine addition modifi cations. For more information, go to www.maine.gov/revenue/forms (select Income Tax Guidance Documents).
Line 1c. Enter 2014 Maine Public Employees Retirement System contributions. See your Maine W-2 form.
Line 1d. Enter the amount claimed as a domestic production activities deduction on federal Form 1040, line 35.
Lines 1e and 1f. BONUS DEPRECIATION ADD-BACK. Lines 1e and 1f relate to Maine’s decoupling from the federal special depreciation deduction through IRC § 168(k), commonly known as bonus depreciation. To calculate the amount to enter on these lines, complete a pro forma federal Form 4562 as if no bonus depreciation was claimed on the property placed in service in tax year 2014. The total addition modifi cation is the difference between the federal depreciation claimed on Form 4562 and the depreciation calculated on the pro forma Form 4562. If any of the property placed in service in tax year 2014 is located in Maine and the Maine capital investment credit is claimed, the total addition modifi cation must be divided between lines 1e and 1f. Otherwise, the entire addition must be entered on line 1e. Enclose copies of the original and pro forma federal Forms 4562, along with the add-back calculation, with the return. For more information, go to www.maine.gov/revenue/forms (select Income Tax Guidance Documents). Also, refer to the instructions for line 2j below.
For more information on Maine income modifi cations, visit www.maine.gov/revenue/forms.
Line 1e. BONUS DEPRECIATION ADD-BACK: Enter on this line the total bonus depreciation add-back calculated above less the amount of Maine capital investment credit add-back from line 1f. Amounts entered on this line are eligible for the recapture subtraction modifi cation on line 2j in future years. Line
1f. MAINE CAPITAL INVESTMENT CREDIT BONUS DEPRECIATION ADD-BACK: The Maine capital investment credit is available to businesses that place depreciable property in service in Maine during the taxable year beginning in 2014. Enter on this line the portion of the bonus depreciation add-back calculated above relating to property for which the Maine capital investment credit is claimed, based on original basis of property placed in service in tax year 2014. For example, if you purchased $400,000 of eligible property and $100,000 of that property is located in Maine and included in the credit base, the portion of the add-back to include on this line is $100,000/$400,000 or 25% of the total bonus depreciation add-back calculated above. Property that is transferred out-of state or disposed of within 12 months after being placed in service in Maine is not eligible for the Maine capital investment credit. Amounts claimed on this line are not eligible for the recapture subtraction modifi cation on line 2j.
Line 1g. Enter your share of a fiduciary adjustment (addition modifi cations) relating to income from an estate or trust (36 M.R.S. § 5122(3)). Attach a copy of your federal Schedule K-1.
Line 1h. Other. See the worksheet at www.maine.gov/revenue/forms/1040/2014.htm that lists the addition income modifi cations required to be entered on this line. Enter on this line: • the amount of loss, deductions and other expenses of a fi nancial institution subject to Maine franchise tax that are included in your federal adjusted gross income due to an ownership share in the fi nancial institution that is a partnership, S corporation, or entity
disregarded as separate from its owner • amounts claimed as a deduction in determining federal adjusted gross income that are included in the credit
base for
1) the Forest Management Planning Credit (36 M.R.S. § 5216-C);
2) the Maine Fishery Infrastructure Investment Tax Credit (36 M.R.S. §5216-D);
3) the High-technology Investment Tax Credit (36 M.R.S. § 5219-M); and
4) the Maine Credit for Wellness Programs under 36 M.R.S. §5219-FF • qualifi ed tuition and other education expenses claimed on the federal return in accordance with section 222 of the Internal Revenue Code.
For more information, go to www.maine.gov/revenue.