An Act To Amend the Amount of the Child Care Tax Credit
Maine Legislature, Session 123, LD 1712
Committee: Taxation
Sponsors: CONOVER, PERRY, CHASE, FAIRCLOTH, PIOTTI, RAND, WATSON, MILLS, NASS
Amends: 36 MRSA §5218

Legislative Document 
No. 1712 
H.P. 1195 
House of Representatives, March 23, 2007 
An Act To Amend the Amount of the Child Care Tax Credit 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative CONOVER of Oakland. 
Cosponsored by Senator PERRY of Penobscot and -
1J1~ 
/J7.71/dC~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CHASE of Wells, FAIRCLOTH of Bangor, PIOTTI of Unity, RAND of 
Portland, WATSON of Bath, Senators: MILLS of Somerset, NASS of York. 
PrinlecJ un recyded paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §5218, as amended by PL 2005, c. 519, Pt. DO, §§1 to 3, 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 
alloy/able for child and dependent care expenses for which the individual is eligible in the 
same federal tax year, except that for tax years beginning in 2003, 2004 and 2005, the 
applicable peroentage is 21.5% instead of 25% notwithstanding any limitation imposed 
by the Code, Section 26. 
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 tax credit 
allowable for child and dependent care expenses for which the individual is eligible in the 
same federal tax year, notwithstanding any limitation imposed by the Code, Section 26, 
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, exoept that for tax years beginning in 2003, 
2004 and 2005, the applicable peroentage is 21.5% instead of25%. 
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%, exoept that for tax years beginning in 2003, 
2004 and 2005 the applicable percentage is 21.5%, instead of 25%, 100% of the federal 
tax credit allO\vable for child and dependent care expenses for which the individual is 
eligible in the same federal tax year, notwithstanding any limitation imposed by the Code, 
Section 26, 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 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. 
3. Quality child care services. The credit provided by subsections 1, 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 allO\l/ed 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 
defined in section 5102, subsection l-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 1-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 1-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. 2. Application. That section of this Act that amends the Maine Revised 
Statutes, Title 36, section 5218 applies to tax years beginning on or after January 1, 2007. 
SUMMARY 
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This bill increases the income tax deduction allowed for child care expenses to 100% 
of the credit allowed under federal law and removes the $500 cap on the amount of the 
refund . 
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