An Act To
Maine Legislature, Session 124, LD 1296
Committee Amendment CA_A_H703 (House)
Amends: 20-A MRSA §12541, 20-A MRSA §12542, 20-A MRSA §12543, 20-A MRSA §12

COMMITTEE AMENDMENT" A" to H.P. 899, L.D. 1296, Bill, 
Strengthen the Job Creation Through Educational Opportunity Program" 
"An Act To 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'PART A 
Sec. A-I. 20-A MRSA §12541, sub-§l, as enacted by PL 2007, c. 469, Pt. A, § I, 
is amended to read: 
1. 
Accredited Maine community college, college or university. 
"Accredited 
Maine jtmier community college, college or university" means an institution that is 
accredited by a regional accrediting association or by one of the specialized accrediting 
agencies recognized by the United States Secretary of Education and is: 
A. Any campus of the Maine Community College System; 
B. Any campus of the University of Maine System; 
C. The Maine Maritime Academy; 
D. Any educational institution that is located in this State and has authorization to 
confer an associate degree or a bachelor's degree, in accordance with sections 10704 
and 10704-A; 
E. 
Any educational institution that is located in. this State and is exempted from 
chapter 409 under section 10708, subsections I and 2; and 
F. Any educational institution that is located in this State and is operating under a 
cel1ificate of temporary approval frolll the state board under section 10703, to the 
extent that a student is ultimately able either to obtain an associate or a bachelor's 
degree at that institution or to transfer to and obtain a degree from an institution 
described in paragraphs A to E. 
Page J -124LRI402(02)-1 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A "to H.P. 899, L.D. 1296 
Sec. A-2. 20-AMRSA §12541, sub-§2, as enacted by PL 2007, c. 469, Pt. A, §1, 
is amended to read: 
2. 
Benchmarl{ loan payment. . "Benchmark loan payment" means the figure 
described in section 12542, subsection ;!. 2-A, paragraph G D. 
Sec. A-3. 20-A MRSA §12541, sub-§2-A is enacted to read: 
2-A. 
Educational cost-of-Iiving adjustment. 
"Educational cost-of-living 
adjustment" means for any calendar year an amount equal to the average tuition and fees 
at the University of Maine System for a bachelor's degree or at the Maine Community 
College System for an associate degree for the academic year beginning in the prior 
calendar year, divided by the average tuition and fees for that degree in that system for 
the academic year beginning in the calendar year immediately preceding the prior 
calendar year. 
Sec. A-4. 20-A MRSA §12541, sub-§4-A is enacted to read: 
4-A. 
Financial aid paclmge. 
"Financial aid package" means all financial aid 
received by a student and includes any loans that are certified by an accredited Maine 
community college, college or university's financial aid office, subject to any changes 
made by that institution's financial aid office. These loans may include private loans for 
the cost of attendance at an accredited Maine community college, college or university or 
less than the full amount of loans under federal programs, depending on the practices of 
the accredited Maine community college, college or university. 
Sec. A-5. 20-A MRSA §12541, sub-§5, as enacted by PL 2007, c. 469, Pt. A, § 1, 
is amended to read: 
5. Maine resident. "Maine resident" means an individual who qualifies for Maine 
residence under Title 21-A, section 112. An individual is a Maine resident if, at the time 
the individual commences the relevant degree program, the individual is registered to 
vote in the State or occupies a dwelling in the State and continues to occupy a dwelling in 
the State during the school year, except periods when it is reasonably necessary for the 
individual to live elsewhere as part of an accredited Maine community college, college or 
university's academic programs. 
Sec. A-6. 20-A MRSA §12541, sub-§6, as enacted by PL 2007, c. 469, Pt. A, § 1, 
is repealed. 
Sec. A-7. 20-A MRSA §12541, sub-§7, as enacted by PL 2007, c. 469, Pt. A, § 1, 
is amended to read: 
7. 
Principal cap. 
"Principal cap" means the cap described in section 12542, 
subsection ;!. 2-A. 
Sec. A-8. 20-A MRS A §12542, sub-§2, as enacted by PL 2007, c. 469, Pt. A,§ 1, 
is repealed. 
Sec. A-9. 20-A MRSA §12542, sub-§2-A is enacted to read: 
2-A. Principal cap. The principal cap limits the loan principal for purposes of 
claiming the educational opportunity tax credit. The University of Maine System and the 
Maine Community College System shall publish on their respective publicly accessible 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A ,. to H.P. 899, L.D. 1296 
websites the average in-state tuition and mandatory fees applicable to their respective 
programs and provide those figures to the State Tax Assessor and all accredited Maine 
community colleges, colleges and universities by September 1st each year. 
A. For an individual graduating in 20 10, the individual's principal cap is $7,865 for a 
bachelor's degree earner or $3,300 for an associate degree earner, multiplied by the 
number of years of full-time attendance to obtain the relevant degree. 
B. 
Beginning in 2010, by November 1st annually the State Tax Assessor shall 
multiply the educational cost-of-living adjustment by the principal cap applicable to 
individuals who graduate in that calendar year; the result is the principal cap for 
individuals who graduate during the following calendar year. 
C. For an individual earning a degree from an accredited Maine community college, 
college or university, the relevant accredited Maine community college, college or 
university shall celiify, once the individual has earned the degree, the total principal 
of loans the individual received as pali of that individual's financial aid package. 
D. For an individual whose student loans exceed the principal cap, a benchmark loan 
payment must be calculated as described in this paragraph. The State Tax Assessor 
shall annually by November 1st calculate what the monthly payment would be on a 
loan for the amount of the principal cap, to be paid over 10 years, at the interest rate 
offered for federally subsidized Stafford loans under 20 United States Code, Section 
10na, during the individual's last year of enrollment at an accredited Maine 
community college, college or university. 
Sec. A-tO. 20-A MRSA §12542, sub-§3, as enacted by PL 2007, c. 469, Pt. A, 
§ I, is amended to read: 
3. Eligibility for the program. The state board shall draft an opportunity contract 
for use in enrolling individuals in the program. The terms of the opportunity contract 
must reauire an individual .. ",ho .. "ishes To be eligible to participate in the program te: 
A. Certifv that that An individual ffi must be a Maine resident; 
B. Agree to An individual must attend and te obtain a specified degree, either an 
associate degree or a bachelor's degree, from an accredited Maine jttfHer community 
college, college or university. The individual need not obtain the degree from the 
institution in which that individual originally enrolled, se as long as all course work 
toward the degree is performed at accredited Maine jtm-ier community colleges, 
colleges or universities; 
C. 
Agree to An individual must live in this State while pursuing the degree~ 
excepting periods when it is reasonably necessary for the individual to live elsewhere 
as part of the relevant institution's academic programs. The individual slta+l must also 
agree to live in this State after obtaining the degree during any period when that 
individual seeks to take advantage of the educational 0ppOliunity tax· credit; and 
D. Agree to An individual must maintain records relating to loan payments claimed 
under the educational opportunity tax credit for 5 years after those payments are 
claimedt-aOO~ 
E. '!,lith resoect to educational loans. ae:ree to the follmvine:: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" ~" to H.P. 899, L.D. 1296 
(1) The individual may claim the educational opportunity tax credit only with 
respect to loans that are part of that individual's financial aid package and that 
have a term of at least g years; 
(2) If the individual in any way accelerates repayment, the individual forfeits any 
right to claim an educational opportunity tax credit for that taxable year or any 
future taxable year; and 
(3) The individual may refinance said loans only if they remain separate from 
other debt and if the effect of the refinancing is to decrease both the annual 
repayment and the total remaining indebtedness. 
. In exchange for the consideration outlined in paragraphs B to E, the State shall agree to 
permit the individual to take advantage of the educational opportunity tm. credit. 
The opportunity contract must leave space for the accredited Maine junior college, 
college or university to certify that the individual has obtained the relevant degree, and to 
certifY whether or not the loan principal that the individual incurs in pursuing the relevant 
degree exceeds the principal cap. 
Sec. A·Il. 20-A MRSA §l2542, sllb .. §3 .. A is enacted to read: 
3-A. 
Educational loans. 
The following provisions apply with respect to an 
individual's educational loans. 
A. The individual may claim the educational opportunity tax credit only with respect 
to loans that are part of that individual's financial aid package and that have a term of. 
at least 8 years. 
B. If the individual makes any prepayment, that prepayment is not eligible for the 
educational opportunity tax credit. 
C. The individual, including an individual who has graduated from an accredited 
Maine community college, college or university after January 1, 2008, may refinance 
educational loans only if they remain· separate from other debt, whether 
noneducational debt or educational debt incurred in a program other than the degree 
program for which the educational opportunity tax credit is claimed. 
Sec. A .. l2. 20-A MRSA §l2542, sub .. §4, as enacted by PL 2007, c. 469, Pt. A, 
§ 1, is repealed. 
Sec. A .. 13. 20-A MRS A §l2542, sub-§4-A is enacted to read: 
4-A. 
Administration. 
The program must be administered as described in this 
subsection. 
A. 
The department, in consultation with the State Tax Assessor, shall make 
information about the program available on the depaliment's publicly accessible 
website. 
The department shall refer any questions regarding the program to the 
relevant accredited Maine community college, college or university's financial aid 
office. The assessor shall provide to an accredited Maine community college, college 
or university information that is necessary to document a student's eligibility for the 
educational opportunity tax credit. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT '"A" to H.P. 899, L.D. 1296 
B. A Maine resident who enrolls in an accredited Maine community college, college 
Dr university who receives financial aid in the form of loans must have the 
opportunity to participate in the program. An accredited Maine community college, 
college or university shall, at a minimum, provide information about the program in 
financial aid award materials, entrance interviews, exit interviews, materials listing 
financial aid resources and, as appropriate, any promotional materials provided by 
state agencies, to the extent such contacts with students are already part of the 
accredited Maine community college, college or university's procedures. 
C. An accredited Maine community college, college or university must document for 
the student information required for purposes of the educational opportunity tax 
credit. The accredited Maine community college, college or university shall provide 
an original or certified copy to the student and shall retain a copy of the 
documentation in its files for at least 10 years after the student graduates. 
D. An individual may take advantage of any forbearance or deferment provisions in 
the relevant loan agreements without forfeiting the right to claim the educational 
opportunity tax credit when the individual resumes repayment. 
This paragraph 
applies to a student that obtained a bachelor's or associate degree from an accredited 
Maine community college, college or university after September 20,2007. 
Sec. A-14. 20-A MRSA §12542, sub-§5, as enacted by PL 2007, c. 469, Pt. A, 
§ 1, is amended to read: 
5. 
Effective date; participation by individual already enrolled in degree 
program. The program must commence for the first semester that begins after the 
effective date of this chapter. 
A Maine residents resident who when the program 
commences are is enrolled in an associate or a bachelor's degree program at an accredited 
Maine jttn-ief community college, college or university may participate, subject to the 
same essential terms as other program participants. "!,Then such an individual obtains the 
relevant degree, it must be specified in the individual's opportunity contract \vhat 
percentage of the course work completed in pursuit of the degree was performed while 
the individual 'Nas participating in the program. The principal cap and benchmark loan 
payment must be calculated in the ordinary 'ivay as provided in this chapter, but the 
individual must then apply the percentage in this subsection to actual payments or to the 
benchmark loan payment, whichever applies, in determining the amount the individual 
can claim under the educational opportunity tax credit for a given year. Such an 
individual need only meet the eligibility requirements in subsection 3 from January 1, 
2008 forward. 
Sec. A-15. 20-A MRS A §12542, sub-§6 is enacted to read: 
6. Promotion by state agencies. The department, the Finance Authority of Maine, 
the Depaliment of Economic and Community Development and any other agency 
engaging in education-related outreach shall integrate promotion of the program into 
existing educational opportunity outreach effOlis to the extent possible in a manner 
consistent with the scope of the program and its centrality to the State's efforts to raise 
educational attainment. 
Sec. A-16. 20-A MRSA §12543, as enacted by PI..; 2007, c. 469, Pt. A, § I, is 
amended to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H,P. 899, L.D. 1296 
§12543. Effect on funding of higher education 
It is the intent of the Legislature that neither the existence of the program nor the 
benefits provided under the educational opportunity tax credit serve as justification to 
decrease other funds appropriated or allocated to accredited Maine jl:mtef community 
colleges, colleges or universities, including institutions in the Maine Community College 
System and the University of Maine System, or to other higher education programs. 
Sec. A-17. 20-A MRSA §12S44, as enacted by PL 2007, c. 469, Pt. A, § 1, is 
repealed. 
Sec. A-I8. Report on progress in implementation. An accredited Maine 
community college, college or university, as defined in the Maine Revised Statutes, Title 
20-A, section 12541, subsection 1, shall report to the Department of Education in writing 
by February 1,2011 and by February 1,2012 on efforts to promote and enroll individuals 
in the Job Creation Through Educational Opportunity Program and to train admissions 
and financial aid staff about the program. The department shall convey the information 
gathered pursuant to this section to the joint standing committee of the Legislature having 
jurisdiction over education and cultural affairs by March 1,2011 and March 1,2012. The 
State Tax Assessor shall report on implementation of the program to the joint standing 
committee of the Legislature having jurisdiction over education and cu'ltural affairs by 
March 1,2011 and March 1,2012. 
Sec. A-19. Repeal of current rules. The State Board of Education shall repeal 
Chapter 145 of Title 05-07\ of the Code of Maine Rules. 
PARTB 
Sec. B-l. 36 MRS A §S122, sub-§2, WF is enacted to read: 
FF. To the extent included in federal adjusted gross income, student loan payments 
made by the taxpayer's employer in accordance with section 5217-0. 
Sec. B-2. 36 MRSA §S217-D, sub-§I, V, as enacted by PL 2007, c. 469, Pt. B, 
§ 1, is repealed. 
Sec. B-3. 36 MRSA §S217-D, sub-§I, ~G, as enacted by PL 2007; c. 469, Pt. B, 
§ 1, is amended to read: 
G. 
"Opportunity program participant" means an individual who enters into an 
opportunity contract 'Nith the State, obtains the specified degree and complies with 
the requirements under Title 20-A, section 12542. subsections 3 to 5. 
Sec. B-4. 36 MRS A §S217-D, sub-§3, as enacted by PL 2007, c. 469, Pt. B, § 1, 
is amended to read: 
3. Calculation ofthe credit. The follmving provisions govern the calculation of the 
credit in this section is determined on the basis of the amount under paragraph A or 
paragraph B. whichever is less, multiplied by the proration factor. For purposes of this 
subsection, the proration factor is the amount derived by dividing the total number of 
academic credit hou'rs earned for a bachelor's or associate degree after December 31, 
COMMITTEE AMENDMENT 
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6. 
COMMITTEE AMENDMENT" ~"to H.P. 899, LD. 1296 
2007 by the total number of academic credit hours earned for the bachelor's or associate 
degree. 
A. If the relevant opportunity program participant's opportunity contract limits the 
amount of the credit to a benchmark loan payment, and the relevant opportunity 
program participant's is less than the actual monthly payment due is higher than that 
amount, then the credit claimed may not exceed the product of the benchmark loan 
payment and the number of months during the taxable year in which the taxpayer 
made loan payments. 
B. If the relevant opportunity program paJ1icipant's opportunity contract certifies that 
the principal for the relevant loans is at or belmv the level of the principal cap, or if 
the relevant opportunity program participant's actual monthly loan payment amount 
is betew less than the benchmark loan payment, the taxpayer may claim a credit must 
be based erHy on regularly scheduled the actual loan payments actually made during 
the taxable year. 
C. If the credit is claimed on behalf of an individual who was already enrolled in an 
associate or a bachelor's degree program at an accredited Maine junior college, 
college or university, as defined in Title 20 A, section 12541, subsection 1, on the 
commencement of the Job Creation Through Educational Opportunity Program under 
Title 20 A, chapter 428 C, the percentage figure listed in the opportunity contract, as 
specified under Title 20 A, section 12542, subsection 5, must be applied to the 
amount determined under paragraph A or B. 
Sec. B-S. Application. This Part applies to tax years beginning on or after January 
1,2010.' 
SUMMARY 
This amendment strikes and replaces the bill in order to make a number of 
improvements to the Job Creation Through Educational 0ppOJ1unity Program. Part A of 
the amendment accomplishes the following. 
1. 
It amends the definition of 
"accredited Maine junior college, college or 
university" in the program to reflect the name change of junior college to community 
college and to include the requirement that the institution must have accreditation. 
2. It amends the definition of "Maine resident" to clarity when an individual is 
considered a Maine resident for the purposes of this program. 
3. 
It defines the terms "financial aid package" and "educational cost-of-living 
adjustment." 
4. It changes the eligibility criteria for paJ1icipation in the program. 
5. It repeals the definition of "oppOJ1unity contract" and provisions peJ1aining to the 
use of the contract. 
6. It requires the Maine Community College System and the University of Maine 
System to publish and disseminate to the Department of Education and all accredited 
Maine community colleges, colleges and universities the average in-state tuition and 
mandatory fees. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "R "to H.P. 899, L.D. 1296 
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7. 1t requires the State Tax Assessor to annually determine the principal cap and 
benchmark loan payment amounts arid to provide to an accredited Maine community 
college, college or university the information necessary to document a student's eligibility 
for the educational 0ppOitunity tax credit. The principal cap is based on in-state tuition 
and mandatory fees for either the Maine Community College System or the University of 
Maine System, depending on whether the enrollment is for pursuit of an associate degree 
or of a bachelor's degree. 
8. 
It requires the Department of Education, in consultation with the State Tax 
Assessor, to make information about the program available on the department's publicly 
accessible website. The department shall refer any questions regarding the program to 
the relevant accredited Maine community college, college or university's financial aid 
office. 
9. It provides that all accredited Maine commlll1ity colleges, colleges and universities 
shall certifY the total principal that an individual who has earned a degree at the 
institution has received as part of the individual's financial aid package. 
10. It repeals the rule-making provision established in Maine Revised Statutes for the 
administration of the program. 
11. It directs all accredited Maine commlll1ity colleges, colleges and universities to 
file a report with the Department of Education by February 1, 2011 and February 1, 2012 
on how the program is working and it directs the department to convey the information 
gathered to the joint standing committee of the Legislatu're having jurisdiction over 
education and cultural affairs by March 1, 2011 and March 1, 2012. 
12. It also directs the State Tax Assessor to report on implementation of the program 
to the joint standing committee of the Legislature having jurisdiction over education and 
cultural affairs by March 1, 2011 and March 1, 2012. 
13. 
[t directs the State Board of Education to repeal the rul,es adopted for the 
administration of the program. 
Part B of the amendment amends the educational opportunity tax credit to reflect the 
changes that were made to the program in Part A and enacts an income modification to 
Maine taxable income with respect to loan payment amounts paid by employers that are 
subject to federal income taxes. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 03/04/10 frac. 
LD 1296 
LR 1402(02) 
An Act To Strengthen the Job Creation Through Educational Opportunity Program 
Fiscal Note for Bill as Amended by Committee Amendment '~" 
Committee: Education and Cultural Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
Any implementation, inter-agency consultation, repOiting and related costs to Maine Revenue Services can be 
absorbed within existing budgeted resources. 
Additional costs to the Department of Education, the Maine Community College System, the University of Maine 
System, the Finance Authority of Maine and the Department of Economic and Community Development associated 
with fulfilling the requirements of this legislation can be absorbed within existing budgeted resources. 
LRI402(02) - Fiscal Note - Page 1 of 1