Maine Legislature, Session 121, LD 0502
Committee Amendment CA_A_H286 (House)
Amends: 10 MRSA §1100-Y

COMMITTEE AMENDMENT "If" to H.P. 387, L.D. 502, Bill, 
Act To Expand the Education Tax Credit" 
"An 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. 1. 10 MRSA §1100-Y, sub-§I, llA, as enacted by PL 2001, 
c. 700, §l, is amended to read: 
A. 
"Eligible student" means a student who: 
(1) Is a resident of the State; 
(2) 
Is a graduate of an approved secondary school or 
the 
equivalent, 
including, 
but 
not 
limited 
to, 
a 
student who 
received equivalent instruction through 
home instruction, 
a 
student who matriculated at an 
accredited public or private institution of higher 
education in the State prior to high school graduation 
or 
a 
student 
who 
successfully completed 
a 
general 
educational development examination or its equivalent; 
and 
(3) 
Is or will be matriculated at an institution of 
higher educationT-aBe~ 
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COMMITTEE AMENDMENT 
~~. 
~. 
COMMITTEE AMENDMENT ,,/f.. to H.P. 387, L.D. 502 
Sec. 2. 10 MRSA §1100-Y, sub-§2, 1JB, as enacted by PL 2001, c. 
700, §l, is repealed and the following enacted in its place: 
B. 
Following initial certification pursuant to paragraph A, 
annual certification standards for a qualified scholarship 
organization must include the requirement that the qualified 
scholarship organization: 
(1) 
Has awarded in the form of need-based scholarships 
an amount equal to at least 95'%. of the contributions 
recei ved during the preceding calendar year that are 
eligible for a tax credit under Title 36, section 2527 
or 5219-U: or 
(2) 
Demonstrate 
that 
it 
is 
a 
need-based 
scholarship-granting 
organization 
possessing 
an 
endowment or endowments with a value of not less than 
$1. 000,000 
that 
makes 
a 
commitment 
to 
spend 
on 
need-based scholarships an amount equal to 100" of the 
contributions that are eligible for the tax credit 
received during the preceding calendar year 
and to 
spend no more than 2'%. of the value of the endowment or 
endowments 
of 
the 
organization 
on 
administrative 
expenses related to the distribution of scholarships, 
exclusive of investment management fees 
and awarded 
grants. 
Sec.3. 10 MRSA §1100-Y, sub-§2,'C is enacted to read: 
C. 
A qualified scholarship organization must demonstrate 
that it encourages scholarship recipients to 
st~ in this 
State 
or 
to 
return 
to 
this State 
upon 
completion of 
education. 
The organization m~ meet this requirement by 
demonstrating that it requires scholarship recipients to 
sign a statement of intent to reside in this State upon 
graduation 
from 
institutions of higher education or 
by 
providing 
organized 
community 
service 
opportunities, 
fellowships, 
job assistance, 
professional 
development or 
other activities designed to connect Maine students with 
businesses and communities in this State.' 
SUMMARY 
This 
amendment 
allows 
a 
need-based scholarship granting 
organization possessing an endowment or endowments with a value 
of not less than $1,000,000 to be designated as a qualified 
scholarship organization if it demonstrates that the organization 
awards an amount equal to 100'%. of the amount of funds eligible 
for the tax credit received during the preceding calendar year 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~, to H.P. 387, L.D. 502 
and that administrative expenses for the endowments do not exceed 
20.0 of the value of the endowments. 
The amendment also removes 
the requirement that a 
recipient sign a 
pledge intending to 
return 
to 
the 
State 
and 
instead 
requires 
the 
qualified 
scholarship 
organization 
to 
either 
require 
a 
pledge 
or 
to 
demonstrate that it offers outreach activities. 
COMMITTEE AMENDMENT