An Act To Improve the Job Creation Through Educational Opportunity Program
Maine Legislature, Session 126, LD 1718
Committee Amendment CA_A_H746 (House)
Amends: 36 MRSA §5122

COMMITTEE AMENDMENT "A " 
to H.P. 1228, L.D. 1718, Bill, "An Act To 
Improve the Job Creation Through Educational Opportunity Program" 
Amend the bill by striking out all of section 14 and inserting the following: 
'Sec. 14. 36 MRSA §5122, sub-§2, ~FF, as amended by PL 2011, c. 138, § 1 and 
affected by §4, is further amended to read: 
FF. To the extent included in federal adjusted gross income, student loan payments 
made by the taxpayer's employer directly to a lender on behalf of a qualified 
employee in accordance with section 5217 -D, whether or not the employer claims, or 
could claim, the credit provided by section 5217-D, subsection 5; , 
Amend the bill in section 15 in §5217-D in subsection 1 by striking out all of 
paragraph D-l (page 4, lines 5 to 14 in L.D.) and inserting the following: 
'D-l. "Principal cap" means: 
(1) For an individual graduating from an accredited Maine community college, 
college or university before January 1, 2015, the amount calculated by the State 
Tax Assessor under Title 20-A, section 12542, former subsection 2-A; 
(2) For an individual obtaining a bachelor's degree and graduating from an 
accredited Maine community college, college or university on or after January I, 
2015, the average in-state tuition and mandatory fees for attendance at the 
University of Maine System for the academic year ending during the calendar 
year prior to the year of graduation multiplied by 4; and 
(3) For an individual obtaining an associate degree and graduating from an 
accredited Maine community college, college or university on or after January 1, 
2015, the average in-state tuition and mandatory fees for attendance at the Maine 
Community College System for the academic year ending during the calendar 
year prior to the year of graduation multiplied by 2.' 
Amend the bill in section 15 in §5217 -D in subsection 1 in paragraph G by striking 
out all of subparagraph (5) (page 5, lines 7 to 12 in L.D.) and inserting the following: 
COMMITTEE AMENDMENT 
.,. 
~ 
COMMITTEE AMENDMENT"~" to H.P. 1228, L.D. 1718 
'(5) Worked during the taxable year: 
(a) For tax years beginning prior to January 1, 2015, at least part time for an 
employer located in this State or, for tax years beginning on or after January 
1, 2013, was, during the taxable year, deployed for military service in the 
United States Armed Forces, including the National Guard and the Reserves 
of the United States Armed Forces; or 
(b) For tax years beginning on or after January 1, 2015, at least part time in 
this State for an employer or as a self-employed individual or was, during the 
taxable year, deployed for military service in the United States Armed 
Forces, including the National Guard and the Reserves of the United States 
Armed Forces. 
As used in this subparagraph, "deployed for military service" has the same 
meaning as in Title 26, section 814, subsection 1, paragraph A.' 
Amend the bill in section 15 in § 5217 -D in subsection 2 by striking out all of 
paragraph B (page 5, lines 37 to 43 and page 6, lines 1 to 12 in L.D.) and inserting the 
following: 
'B. More than one A taxpayer may claim a credit based on loan payments actually 
made to a relevant lender or lenders to benefit a single opportunity program 
participant, but no 2 taxpayers may claim the credit based on the same payment under 
this section only with respect to loans that are part of the qualified individual's 
financial aid package and, for tax years beginning on or after January 1, 2015, only 
with respect to loan payment amounts paid by the taxpayer during that part of the 
taxable year that the gualified individual worked in this State. Payment of loan 
amounts in excess of the amounts due during the taxable year does not qualify for the 
credit. 
Refinanced loans that are part of the qualified individual's financial aid 
package are eligible for the credit under this section if the refinanced loans remain 
separate from other debt, including debt incurred in an educational program other 
than the degree program for which a credit is claimed under this section. Forbearance 
or deferment of loan payments does not affect eligibility for the credit under this 
section. For tax years beginning on or after January 1, 2015, an individual who 
worked in this State for any part of a month during the Maine residency period of the 
taxable year is considered to have worked in this State for the entire month. For tax 
years beginning on or after January 1, 2015, an individual who worked outside this 
State for an entire month during the Maine residency period is considered to have 
worked in this State during that month, except that in no case may this exception 
exceed 3 months during the Maine residency period of the taxable year.' 
Amend the bill in section 15 in §5217-D in subsection 3 in the 2nd blocked paragraph 
in the 4th, 5th and 6th lines (page 7, lines 2 to 4 in L.D.) by striking out the following: 
"or, with regard to an individual obtaining an associate degree in any field on or after 
January 1, 2015, to obtain an associate degree from an accredited Maine community 
college, college or university" 
Amend the bill in section 15 in §5217-D in subsection 5 in the 2nd line (page 7, line 
in L.D.) by inserting after the following: "payments" the following: 'directly to a 
lender' 
COMMITTEE AMENDMENT 
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l>-.,. 
COMMITTEE AMENDMENT "A "to H.P. 1228, L.D. 1718 
SUMMARY 
This amendment clarifies that only loan payments paid directly to a lender by an 
employer qualify for an employer tax credit. This change is consistent with current law. 
The amendment reinstates the proper calculation of the principal cap for individuals 
obtaining an associate degree. The amendment clarifies that an employee may claim the 
deduction for loan payments made by an employer only if the employer pays the 
education loan payments directly to a lender. The amendment clarifies that eliminating 
the requirement that a qualified individual work for an employer located in Maine and 
extending the credit to self-employed individuals apply to tax years beginning on or after 
January 1,2015. 
The amendment clarifies that only loan payments made directly to lenders qualify for 
the credit and certain changes apply to tax years beginning on or after January 1, 2015: 
the requirement that loan payments must be made during that part of the tax year during 
which the qualified individual worked in Maine; the exception that allows an individual 
to work in Maine for only part of a month to be considered to have worked in Maine for 
the whole month; and the exception that allows an individual to work outside Maine for 
up to 3 months and still be considered to have worked in Maine during those months. 
The amendment also removes the provision in the bill that proposed to make the 
credit refundable for all associate degrees rather than just those in science, technology, 
engineering and mathematics disciplines. 
FISCAL NOTE REQU1RED 
(See Attached) 
COMMITTEE AMENDMENT 
Approved: 03/06/14 7!Vac. 
LD 1718 
LR2676(02) 
An Act To Improve the Job Creation Through Educational Opportunity Program 
Fiscal Note for Bill as Amended by Committee Amendment "IJ' LH -14&) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor revenue decrease - General Fund 
Minor revenue decrease - Other Special Revenue Funds 
Fiscal Detail and Notes 
The provisions of this bill will result in a minor reduction of General Fund and Local Government Fund revenues not 
requiring any change to the budget. 
LR2676(02) - Fiscal Note - Page 1 of 1