An Act To Allow a Tax Credit for College Loan Repayments
Maine Legislature, Session 123, LD 1856
Committee Amendment CA_A_H414 (House)

COMMITTEE AMENDMENT ,,4 " to I.B. 2, L.D. 1856, Bill, "An Act To Allow a 
Tax Credit for College Loan Repayments" 
Amend the bill by incorporating the attached fiscal note. 
SUMMARY 
This amendment incorporates a fiscal note. 
COMMITTEE AMENDMENT 
Approved: 05/31/07 
~ac:.. 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
LD 1856 
LR 2619(02) 
An Act To Allow a Tax Credit for College Loan Repayments 
Fiscal Note for Bill as Amended by Committee Amendment "A" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
$0 
2008-09 
$147,676 
Projections 
2009-10 
$1,094,245 
Other Special Revenue Funds 
$0 
$0 
($147,676) 
($8,100) 
($1,094,245) 
($60,022) 
Fiscal Detail and Notes 
Projections 
2010-11 
$3,569,816 
($3,569,816) 
($195,831) 
This is an initiated bill which cannot be amended to include any appropriations or allocations without becoming a 
competing measure. If the bill is either approved by the Legislature and signed into law by the Governor or approved 
by the voters in a statewide election in November, the 123rd Legislature will need to provide the necessary 
appropriations in separate legislation. 
The bill provides a tax credit for certain educational loan payments and is available to eligible graduates and 
employers making loan payments on behalf of qualifying employees. Because unused credits may be carried over for 
up to 10 years and more graduates and employers are added to the program each year, the cost rises substantially over 
time. The General Fund revenue loss associated with the tax credit is estimated to be $147,676 in fiscal year 2008-09, 
rises to $9,100,000 in fiscal year 2011-12 and increases to $62,900,000 by fiscal year 2017-18. 
The bill requires the financial aid offices at the University of Maine System, the Maine Community College System 
and the Maine Maritime Academy, as well as all other accredited Maine junior colleges, colleges or universities, to 
administer parts of the Job Creation Through Educational Opportunity Program. The fiscal impact to each individual 
financial aid office can not be determined at this time. The Maine Community College System has indicated that it 
will require one additional full-time person at the Southern Maine Community College office and an average of a half-
time person at each of its other financial aid offices for a total cost of approximately $250,000 per year. The 
Un iversity of Maine System is not able to determine a fiscal impact until further aspects of the administrative 
requirements are more clearly defined. Additional costs to Maine Maritime Academy can be absorbed within existing 
LR2619(02) - Fiscal Note - Page I of 2 
budgeted resources. Maine Revenue Services will require an additional General Fund appropriation of $61 ,016 in 
fiscal year 2008-09 for it's related administrative costs, including funds for one Tax Examiner position. 
Add itional costs to the State Board of Education associated with drafting the opportunity contract can be absorbed 
within existing budgeted resources. 
LR2619(02) - Fiscal Note - Page 2 of2