An Act To Enact a 5-point Welfare Refonn Program
Maine Legislature, Session 124, LD 0254
Committee Amendment CA_A_H513 (House)
Amends: 36 MRSA §5219-E, 36 MRSA §5122, 36 MRSA §5200-A

FIRST REGULARSESSION 
COMMITTEE AMENDMENT" A" to H.P. 200, L.D. 254, Bill, "An Act To Enact 
a 5-point Welfare Refonn Program" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Enact a New Hire Tax Credit' 
Amend the bill by striking out everything after the enacting clause and' before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §5219-EE is enacted to read: 
§5219-EE. New hire tax credit 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Employing unit" has the same meaning as in Title 26, section 1043, subsection 
lJh 
B. "Qualifying person" means a person who, in the month prior to employment with 
an employing unit, was a recipient of benefits under the ASPlRE-TANF program 
under Title 22, chapter 1 053~B and who is currently employed for at least 20 hours 
per week on average by the employing unit. 
2. 
Amount of credit. For tax years beginning on or after January I, 20io, a 
taxpayer that is an employing unit is allowed a tax credit against the tax otherwise due 
under this Part equal to 50% of the gross wages paid during the taxable year to a 
qualifying person during the first 12 continuous months of employment by the taxpayer. 
3. Limitation. The tax credit under this section may not exceed $10,000 for the 
taxable year and may not reduce the tax otherwise due under this Part to less than zero. A 
taxpayer entitled to a credit under this section for any taxable year may carry over and 
apply to the tax liability for anyone or more of the succeeding 2 tax years the portion, as 
reduced from year to year, of any unused credit amount. 
Page) - 124LR0731(03)-1 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to H.P. 200, L.D. 254 
Sec. 2. 36 MRSA §5122, sub-§l, ,Z, as enacted by PL 2007, c. 539, Pt. CCC, 
§4, is amended to read: 
Z. For income tax years beginning on or after January 1, 2008, the amount of any 
qualified state and local tax benefit and any qualified payment excluded from gross 
income pursuant to the Code, Section 139(b); aOO 
Sec. 3. 36 MRSA §5122, sub-§l, ,AA, as enacted by PL 2007, c. 539, Pt. CCC, 
§5, is amended to read: 
AA. For taxable years beginning on or after January 1, 2008 but prior to January 1, 
2010, an amount equal to the net increase in depreciation attributable to the 50% 
bonus depreciation deduction claimed by the taxpayer pursuant to Section 103 of the 
Economic Stimulus Act of 2008, Public Law 110-185 with respect to property placed 
in service during the taxable year.,.; and 
Sec. 4. 36 MRSA §5122, sub-§l, OUBB is enacted to read: . 
BB. An amount equal to the wages deducted in determining federal adjusted gross 
income that is included in the base for the new hire tax credit under section 5219-EE. 
Sec. 5. 36 MRSA §5200-A, sub-§l, GjJT, as amended by PL 2007, c. 700, Pt. B, 
§2, is further amended to read: 
T. For taxable years beginning on or after January 1, 2008 but prior to January 1, 
2010, an amount equal to the net increase in depreciation attributable to the 50% 
bonus depreciation deduction claimed by the taxpayer pursuant to Section 103 of the 
Economic Stimulus Act of 2008, Public Law 110-185 with respect to property placed 
in service during the taxable year; aOO 
Sec. 6. 36 MRSA §5200-A, sub-§l,.~, as enacted by PL 2007, c. 700, Pt. B, 
§3, is amended to read: 
U. For tax years beginning in 2008, 10% of the absolute value in excess of $1 00,000 
of any net operating loss that, pursuant to the Code, Section 172, is being carried over 
for federal income tax purposes to the taxable year by the taxpayer.,.; and 
Sec. 7. 36 MRSA §5200-A, sub-§l,,v is enacted to read: 
V. An amount equal to the wages deducted in determining federal taxable income 
that is included in the base for the new hire tax credit under section 5219-EE. 
Sec. 8. Application. This Act applies to income tax years beginning on or after 
January 1,2010.' 
SUMMARY 
This amendment is the minority report of the committee. This amendment replaces 
the bill. It retains from the bill the new hire tax credit for employers that hire persons for 
at least 20 hours per week, but specifies that for the employer to be eligible the new hire 
must have been, in the month prior to becoming employed, a recipi(~mt of assistance under 
the ASPIRE-T ANF program. 
FISCAL :\OTE RF.QLIRED 
i~,~~~ttached) 
COMMITTEE AMENDMENT 
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Approved: 06/01/09 wac 
LD254 
LR 731(03) 
An ActTo Enact a 5-point Welfare Reform Program 
Fiscal Note for Bill as Amended by Committee Amendment ,,~, 
Committee: Healtb and Human Services 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
2010-11 
Projections 
2011-12 
Projections 
2012-13 
Net Cost (Savings) 
General Fund 
$431,933 
$1,101,430 
$1,156,502 . 
$1,214,327 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
($431,933) 
($22,733) 
($1,101,430) 
($57,971) 
($1,156,502) 
($60,868) 
($1,214,327) 
($63,912) 
111is bill includes an individual or corporate new hire tax credit to an employer that hires a participant in the ASPIRE-
TANF program beginning on or after January 1,2010. The tax credit will reduce revenue to the General Fund by 
$431,933 in FY 2009-10 and by $1,10 1 ,430 in FY 2010-11. The tax credit will also reduce revenue to the Local 
Govemment Fund by $22,733 in FY 2009-10 and $57,971 in FY 2010-11. The costs to Maine Revenue Services 
associated with implementation of this tax credit can be absorbed within existing budgeted resources. Any direct 
impact to the Department of Health and Human Service's ASPIRE and T ANF program spending is assumed to be 
minor given federal maintenance of effort spending requirements. 
LR0731(OJ) - Fiscal Note - Page 1 of 1