An Act To Amend the Laws Governing the Quality Child Care Tax Credit LR 0398(02)
Maine Legislature, Session 121, LD 1249
Committee Amendment CA_A_H480 (House)
Amends: 36 MRSA §5219-Q

COMMITTEE AMENDMENT "!},, to H.P. 923, L.D. 1249, Bill, "An 
Act To Amend the Laws Governing the Quality Child Care Tax Credit" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
. Sec. 1. 36 MRSA §5219-Q, sub-§I-A, as enacted by PL 1999, c. 
708, §47, is amended to read: 
I-A. 
Certification. 
Upon application by an investor or 
contributor, the Department of Human Services, Office of Head 
Start and Child Care shall certify if an 
investment in or 
contribution to 
a 
child care site contributed significantly 
toward the ability of the child care site to improve its level of 
child care services toward the goal of providing quality child 
care services. 
The department shall send a list of taxpayers 
making certified investments or contributions in the previous 
year to the State Tax Assessor by February 1st annually. 
Sec. 2. 36 MRSA §5219-Q, sub-§§2 and 3, as amended by PL 1999, 
c. 708, §47, are further amended to read: 
2. 
Credit allowed. 
A taxpayer that has made an investment 
in 
or 
contribution 
to 
child 
care 
services 
certified 
under 
subsection I-A during the tax year is allowed a credit against 
the tax imposed by this Part in an amount equal to the qualifying 
portion e~-eHpeBai~~£e£-~~~-~-~~~~y-&h&-taHpaye~ 
Page l-LR0398(2) 
COMM/rrEE AMENDMENT 
COMMITTEE AMENDMENT "h' to H.P. 923, L.D. 1249 
~9f'--oe-r--t-i-f-i-ed--:iRvest;HleRt;s--i-n--eh:i;J"Q--<J.a£-e--sef'v:iees as calculated 
pursuant to subsection 3. 
3. 
Qualifying portion. 
For purposes of calculating the 
credit provided by this section, the qualifying portion is: 
A. 
For a corporation, 30% of up to $30,000 of eHpeRQ:it;~f'es 
certified investments or contributions, apportioned if part 
of an affiliated group engaged in a unitary business; and 
B. 
For an individual taxpayer, if the taxpayer eHpeRQS 
makes certified investments or contributions of at least 
$10,000 in one year, 
$1,000 each year for 10 years and 
$10,000 at the end of the 10-year period. 
Sec. 3. Application. 
This Act applies to tax years beginning 
on or after January 1, 2004. I 
SUMMARY 
This 
amendment 
replaces the bill and provides that the 
income tax credit for investments in quality child care services 
also applies to contributions made to quality child care services. 
FISCAL :\lHE REQURED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Approved: 05/16/03 ~ac::.. 
Office of Fiscal and Program Review 
LD 1249 
An Act To Amend the Laws Governing the Quality Child Care Tax 
Credit 
LR 0398(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$8,304 
($8,304) 
($446) 
2004-05 
$55,517 
($55,517) 
($2,983) 
Projections 
2005-06 
$64,938 
($64,938) 
($3,562) 
Projections 
2006-07 
$78,447 
($78,447) 
($4,303) 
Providing an income tax credit for contributions made to quality child care services will reduce income tax collections 
by an estimated $8,750 in fiscal year 2003-04 and $58,500 in fiscal year 2004-05. The reduction of these tax 
collections will decrease the amounts transferred to the Local Government Fund for state-municipal revenue sharing 
in those years by $446 and $2,983. The resulting net reduction of General Fund revenue is estimated to be $8,304 in 
fiscal year 2003-04 and $55,517 in fiscal year 2004-05. 
LR0398(2) - Fiscal Note - Page 1 of 1