Legislative Document No. 1164 S.P. 352 In Senate, March 7, 2019
An Act To Improve the Educational Opportunity Tax Credit
Reference to the Committee on Innovation, Development, Economic Advancement and Business suggested and ordered printed.
DAREK M. GRANT Secretary of the Senate
Presented by Senator POULIOT of Kennebec. Cosponsored by Representative TIPPING of Orono and Senators: DOW of Lincoln, LIBBY of Androscoggin, WOODSOME of York, Representatives: DAUGHTRY of Brunswick, FECTEAU of Biddeford, STEWART of Presque Isle.
Printed on recycled paper 1 Be it enacted by the People of the State of Maine as follows:
2 Sec. 1. 20-A MRSA §12541, sub-§4, as enacted by PL 2007, c. 469, Pt. A, §1, is 3 amended to read:
4 4. Educational opportunity tax credit. "Educational opportunity tax credit" means 5 the tax credit provided for in Title 36, section 5217-D, except that, for tax years 6 beginning on or after January 1, 2020, "educational opportunity tax credit" means the tax 7 credit provided for in Title 36, section 5217-E.
8 Sec. 2. 20-A MRSA §12541, sub-§8, as enacted by PL 2013, c. 525, §5, is 9 amended to read:
10 8. Qualified employee. "Qualified employee" has the same meaning as in Title 36, 11 section 5217-D, subsection 1, paragraph E, except that, for tax years beginning on or after 12 January 1, 2020, "qualified employee" has the same meaning as in Title 36, section 13 5217-E, subsection 1, paragraph G.
14 Sec. 3. 20-A MRSA §12541, sub-§9, as enacted by PL 2013, c. 525, §6, is 15 amended to read:
16 9. Qualified individual. "Qualified individual" has the same meaning as in Title 36, 17 section 5217-D, subsection 1, paragraph G, except that, for tax years beginning on or 18 after January 1, 2020, "qualified individual" has the same meaning as in Title 36, section 19 5217-E, subsection 1, paragraph H.
20 Sec. 4. 36 MRSA §199-C, sub-§3, as amended by PL 2015, c. 328, §2, is further 21 amended to read:
22 3. Specific tax expenditure review. By June 1, 2021 2022, the committee shall 23 review the income tax credit under section sections 5217-D and 5217-E to determine 24 whether the credit should be retained, repealed or modified. The committee shall consider 25 information provided by the Office of Tax Policy within the bureau and the Department 26 of Education pursuant to Title 20-A, section 12545.
27 Sec. 5. 36 MRSA §2535, as enacted by PL 2017, c. 211, Pt. C, §1, is amended to 28 read:
29 §2535. Credit for educational opportunity
30 A taxpayer is allowed a credit against the tax otherwise due under this chapter as 31 determined under section 5217-D or 5217-E.
32 Sec. 6. 36 MRSA §5122, sub-§2, ¶FF, as amended by PL 2013, c. 525, §14, is 33 further amended to read: 34 FF. To the extent included in federal adjusted gross income, student loan payments 35 made by the taxpayer's employer directly to a lender on behalf of a qualified 36 employee in accordance with section 5217-D or 5217-E, whether or not the employer
Page 1 - 129LR0242(01)-1 1 claims, or could claim, the credit provided by section 5217-D, subsection 5 or section 2 5217-E, subsection 4; 3 Sec. 7. 36 MRSA §5122, sub-§2, ¶QQ is enacted to read: 4 QQ. To the extent included in federal adjusted gross income, student loan payments 5 made directly to a lender on behalf of the taxpayer by a student loan repayment 6 program funded by a nonprofit foundation and administered by the Finance Authority 7 of Maine for residents of the State employed by a business located in the State. 8 Sec. 8. 36 MRSA §5217-D, sub-§6 is enacted to read: 9 6. Application. Except for the credit allowed with respect to the carry-over of 10 unused credit amounts pursuant to subsection 2, paragraph A, the credit allowed under 11 this section does not apply to tax years beginning on or after January 1, 2020.
12 Sec. 9. 36 MRSA §5217-E is enacted to read: 13 §5217-E. Credit for student loan repayment
14 For tax years beginning on or after January 1, 2020, a qualified individual or the 15 employer of a qualified employee is allowed a credit for education loan payments as 16 computed under this section against the taxes imposed under this Part.
17 1. Definitions. As used in this section, unless the context otherwise indicates, the 18 following terms have the following meanings. 19 A. "Accredited Maine community college, college or university" has the same 20 meaning as in Title 20-A, section 12541, subsection 1. 21 B. "Accredited non-Maine community college, college or university" means an 22 institution located outside the State that is accredited by a regional accrediting 23 association or by one of the specialized accrediting agencies recognized by the 24 United States Secretary of Education. 25 C. "Education loan payment" means a loan payment paid during the taxable year for 26 eligible education loans. 27 D. "Eligible education loan" means a loan obtained by a qualified individual for 28 attendance by that qualified individual at an accredited Maine community college, 29 college or university or accredited non-Maine community college, college or 30 university to obtain an associate, bachelor's or graduate degree after 2007. "Eligible 31 education loan" includes a refinanced loan or consolidated loan if the refinanced loan 32 or consolidated loan remains separate from other debt, except for debt incurred in an 33 educational program, but only in proportion to the portion of the education loan 34 payment that is otherwise eligible under this section. "Eligible education loan" does 35 not include a loan obtained from a person related to the qualified individual or from 36 any person by reason of a loan under any qualified employer plan or under a contract 37 referred to in the Code, Section 72(p)(5). For purposes of this paragraph, a person is 38 considered related to the qualified individual if that person meets the criteria listed in
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