An Act To Implement Recommendations of the Study Commission Regarding Liveable Wages Concerning Conformity with Federal Tax Laws
Maine Legislature, Session 122, LD 2026
Committee Amendment CA_A_H911 (House)
Amends: 36 MRSA §5218, 36 MRSA §5219-Y

COMMITTEE AMENDMENT ,A, to H.P. 1427, L.D. 2026, Bill, "An Act To 
Implement Recommendations of the Study Commission Regarding Liveable Wages 
Concerning Conformity with Federal Tax Laws" 
Amend the bill by striking out all of sections 2 and 3 and inserting in their place the 
following: 
'Sec. 2. 36 MRSA §5218, as amended by PL 2005, c. 12, Pt. L, §§2 to 4, is further 
amended to read: 
§5218. Income tax credit for child care expenses 
1. 
Resident taxpayer. A resident individual is allowed a credit against the tax 
otherwise due under this Part in the amount of ~ 
100% of the federal tax credit 
allowable for child and dependent care expenses in the same tax year, e*eept that fer ta:K 
years beginning ifl 2003 ta 2006, the applieable pereefl:tage is 21.5% iastead af25%. 
2. 
Nonresident taxpayer. A nomesident individual is allowed a credit against the 
tax otherwise due under this Part in the amount of 25% 100% of the federal tax credit 
allowable for child and dependent care expenses multiplied by the ratio of the individual's 
Maine adjusted gross income, as defined in section 5102, subsection I-C, paragraph B, to 
the individual's entire federal adjusted gross income, as modified by section 5122, e*eept 
that fer ta* years beginftiflg ia 2003 ta 2006, the applieable pereefl:tage is 21.5% msteai! 
af25%. 
2-A. 
Part-year resident taxpayer. An individual who files a return as a part-year 
resident in accordance with section 5224-A is allowed a credit against the tax otherwise 
due under this Part in the amount of 25%, e*eept th&t fur ta:K years beginRiag in 2003 ta 
2006 the applieable pereeRtage is 21.5% instead af 25%, 100% of the federal tax credit 
allowable for child and dependent care expenses multiplied by a ratio, the numerator of 
which is the individual's Maine adjusted gross income as defined in section 5102, 
subsection l-C, paragraph A for that portion of the taxable year during which the 
individual was a resident plus the individual's Maine adjusted gross income as defined in 
section 5102, subsection I-C, paragraph B for that portion of the taxable year during 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT A 
to H.P. 1427, L.D. 2026 
which the individual was a nonresident and the denominator of which is the individual's 
entire federal adjusted gross income, as modified by section 5122. 
3. 
Quality child care services. The credit provided by subsections I, 2 and 2-A 
doubles in amount if the child care expenses were incurred through the use of quality 
child care services as defined in section 5219-Q, subsection 1. 
4. 
Refund. The credit allowed by this section may result in a refund of up to $500. 
In the case of a nonresident individual, the refundable portion of the credit may not 
exceed $500 multiplied by the ratio of the individual's Maine adjusted gross income, as 
defmed in section 5102, subsection I-C, paragraph B, to the individual's entire federal 
adjusted gross income, as modified by section 5122. In the case of an individual who 
files a return as a part-year resident in 'accordance with section 5224-A, the refundable 
portion of the credit may not exceed $500 multiplied by a ratio, the numerator of which is 
the individual's Maine adjusted gross income as defined in section 5102, subsection l-C, 
paragraph A for that portion of the taxable year during which the individual was a 
resident plus the individual's Maine adjusted gross income as defmed in section 5102, 
subsection l-C, paragraph B for that portion of the taxable year during which the 
individual was a nonresident and the denominator of which is the individual's entire 
federal adjusted gross income, as modified by section 5122. 
Sec. 3. 36 MRSA §5219-Y is enacted to read: 
§S219-Y. Child tax credit 
1. Resident taxpayer. A resident individual is allowed a credit against the tax 
otherwise due under this Part in the amount of 100% of the federal child tax credit for 
each qualifying child under 17 years of age: 
2. Nonresident taxpayer. A nonresident individual is allowed a credit against the 
tax otherwise due under this Part in the amount of 100% of the federal child tax credit for 
each qualifying child under 17 years of age multiplied by the ratio of the individual's 
Maine adjusted grOSS income. as defined in section 5102, subsection l-C, paragraph B, to 
the individual's entire federal adjusted gross income, as modified by section 5122. 
3. Part-year resident taxpayer. An individual who files a return as a part-year 
resident in accordance with section 5224-A is allowed a credit against the tax otherwise 
due under this Part in the amount of 100% of the federal child tax credit for each 
qualifying child under 17 years of age multiplied by a ratio, the numerator of which is the 
individual's Maine adjusted gross income as defmed in section 5102. subsection I-C. 
paragraph A for that portion of the taxable year during which the individual was a 
resident plus the individual's Maine adjusted gross income as defmed in section 5102. 
subsection I-C. paragraph B for that portion of the taxable year during which the 
individual was a nonresident and the denominator of which is the individual's entire 
federal adjusted gross income, as modified by section 5122. 
Sec. 4. Application. That section of this Act that amends the Maine Revised 
Statutes, Title 36, section 5126 applies to tax years beginning on or after January 1,2006. 
That section of this Act that amends Title 36, section 5218 and the section that enacts 
Title 36, section 5219-Y apply to tax years beginning on or after January 1,2007. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT A 
to H.P. 1427, L.D. 2026 
Sec. 5. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Maine Revenue Services 0002 
Initiative: Provides funds for the administrative costs associated with the changes in the 
child care credit, personal exemption and the child tax credit, including funds for one Tax 
Examiner position. 
GENERAL FUND 
2005-06 
2006-07 
POSITIONS - LEGISLATIVE COUNT 
0.000 
1.000 
Personal Services 
$0 
$26,265 
All Other 
$0 
$22,822 
GENERAL FUND TOTAL 
$0 
$49,087 
SUMMARY 
This amendment makes changes to resolve an issue of the constitutionality of the 
bill's proposed changes and adds an application section and an appropriations and 
allocations section to the bill. 
COMMITTEE AMENDMENT 
Approved: 03/24/06 frac:.. 
LD 2026 
LR3116(02) 
An Act To Implement Recommendations of the Study Commission Regarding Liveable Wages 
Concerning Conformity with Federal Tax Laws 
Fiscal Note for Bill as Amended by Committee Amendment ,~, 
Committee: Taxation 
Net Cost (Savings) 
General Food 
Appropriationsl Allocations 
General Food 
Revenue 
General Food 
Other Special Revenue Foods 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
2006-07 
Projections 
2007-08 
Projectioll 
2008-() 
$0 
$45:112,084 
$175,306,373 
$176,414,56: 
$0 
$49,087 
$64,135 
$67 11: 
$0 
($45,062,997) ($175,242,238) 
($176,347,44~ 
$0 
($2,421,721) 
($9,612,443) 
($9,673,06' 
Conforming to the federal law regarding the child care credit, personal exemption and the child tax credit is expected t. 
reduce General Food revenue by $45,062,997 in fiscal year 2006-07. This bill also includes a General Food 
appropriation of $49,087 in fiscal year 2006-07 for Maine Revenue Services' administrative costs associated with thes( 
changes. 
LR3116(2) - Fiscal Note - Page 1 of 1