An Act To Provide an Internship Employment Tax Credit
Maine Legislature, Session 126, LD 1099
Sponsors: GOODALL, CAIN, KATZ, LANGLEY, MILLETT, McCABE
Amends: 36 MRSA §5219-I

Legislative Document 
No. 1099 
S.P. 381 
In Senate, March 19, 2013 
An Act To Provide an Internship Employment Tax Credit 
Reference to the Joint Select Committee on Maine's Workforce and Economic Future 
suggested and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator GOODALL of Sagadahoc. 
Cosponsored by Senators: CAIN of Penobscot, KATZ of Kennebec, LANGLEY of Hancock, 
MILLETT of Cumberland, Representative: McCABE of Skowhegan. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5219-II is enacted to read: 
§5219-II.  Internship employment tax credit 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Employer" has the same meaning as "employing unit," as defined in Title 26, 
section 1043, subsection 10. 
B.  "Intern" means a student who: 
(1)  Is enrolled in an institution of higher education or in a vocational or technical 
education program; 
(2)  Is enrolled in a program of study that leads to a degree or a certification of 
completion in a major field of study closely related to the work performed for the 
employer; 
(3)  Will receive academic credit toward the completion of a degree or credit 
toward the completion of a vocational or technical education program for the 
work performed for the employer; and 
(4)  Is supervised and evaluated by the employer. 
C.  "Qualified compensation" means a stipend, hourly wage or salary paid for 
services rendered in an employment position and excludes payment in a medium 
other than legal tender, such as meals provided at the employer's expense. 
2.  Credit allowed.  An employer is allowed a credit against the tax imposed by this 
Part subject to the qualifications in subsection 3 and limitations contained in subsection 4.  
The amount of the credit to which an employer is entitled is 10% of the qualified 
compensation paid to an intern employed by the employer. 
3.  Qualifications.  An employer of an intern may claim the credit allowed by this 
section for a tax year in which the employer employs an intern. 
4.  Limitations.  An employer may not receive more than $3,000 in total credits for 
all interns employed under this section for all taxable years combined.  The tax credit 
under this section applies to qualified compensation for not more than 5 interns employed 
at the same time.  The credit may not reduce the tax otherwise due under this Part to less 
than zero. 
5.  Review.  By January 15, 2018, the joint standing committee of the Legislature 
having jurisdiction over taxation matters shall review the effectiveness and cost of the 
credit provided pursuant to this section, with assistance from the Department of 
Administrative and Financial Services, Bureau of Revenue Services.  The joint standing 
committee may report out legislation to the Second Regular Session of the 128th 
Legislature based on its review. 
Sec. 2.  Application.  This Act applies to tax years beginning on or after January 1, 
2013. 
SUMMARY 
This bill creates a tax credit for employers that employ qualified interns.  The 
employer is entitled to a nonrefundable credit equal to 10% of the wages, stipend or 
salary paid to the intern and may not receive more than $3,000 in total credits for all 
taxable years combined.  The credit applies to the wages, stipend or salary of no more 
than 5 interns employed at the same time.