An Act To Encourage Local Business Involvement in Local Schools
Maine Legislature, Session 126, LD 0624
Committee: Taxation
Sponsors: McCLELLAN, TYLER, WILSON
Amends: 36 MRSA §5219-I

Legislative Document 
No. 624 
H.P. 443 
House of Representatives, February 21, 2013 
An Act To Encourage Local Business Involvement in Local Schools 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative McCLELLAN of Raymond. 
Cosponsored by Representatives: TYLER of Windham, WILSON of Augusta. 
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.  Employer adopt-a-school tax credit 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Qualified adopt-a-school activity" means an activity that benefits a qualified 
school, including, but not limited to, contributing cash; donating supplies, equipment 
or other tangible property; providing services to a student at a qualified school at no 
profit to the qualified employer; providing employees of the qualified employer with 
paid time off to volunteer at a qualified school; and providing an internship for a 
student enrolled in a qualified school. 
B.  "Qualified employer" means an employing unit, as defined in Title 26, section 
1043, subsection 10, located in the State that engages in a qualified adopt-a-school 
activity. 
C.  "Qualified school" means a public elementary or secondary school located in the 
same county as or within 25 miles of the qualified employer. 
2.  Credit allowed.  A qualified employer is allowed a credit, not to exceed the 
limitation in subsection 3, against the tax imposed by this Part in an amount equal to the 
cost of all qualified adopt-a-school activities provided by the qualified employer in the 
course of a calendar year. 
3.  Limitations.  The amount of the credit allowed under this section for any one 
taxable year may not exceed 50% of the tax imposed by this Part on the qualified 
employer for the taxable year before application of the credit.  The credit may not reduce 
the tax otherwise due under this Part to less than zero. 
4.  Carry forward.  Credits not taken because of the limitation in subsection 3 must 
be taken in the next taxable year in which the credit may be taken, but the limitation of 
subsection 3 also applies to the carry-forward years.  In no case may this carry-forward 
period exceed 15 years. 
Sec. 2.  Application.  This Act applies to tax years beginning on or after January 1, 
2013. 
SUMMARY 
This bill provides a nonrefundable income tax credit to a qualified employer equal to 
the amount expended on a qualified adopt-a-school activity that benefits a public 
elementary or secondary school.  The credit may not exceed 50% of the tax liability of 
the qualified employer for the taxable year before application of the credit.  A qualified 
adopt-a-school activity includes contributing cash; donating supplies, equipment or other 
tangible property; providing services to a student at a qualified school at no profit to the 
qualified employer; providing employees of the qualified employer with paid time off to 
volunteer at a qualified school; and providing an internship for a student enrolled in a 
qualified school.