An Act To Simplify and Expand the Educational Opportunity Tax Credit
Maine Legislature, Session 127, LD 1657
Senate Amendment SA_A_S509 (Senate)
Amends: 36 MRSA §5217-D

SENATE AMENDMENT "A" to S.P. 678, L.D. 1657, Bill, "An Act To Simplify 
and Expand the Educational Opportunity Tax Credit" 
Amend the bill by inserting after section 3 the following: 
'Sec. 4. 36 MRSA §5217-D, sub-§2, ,rs, as amended by PL 2015, c. 267, Pt. 
QQQ, §4 and affected by §6, is further amended to read: 
B. A taxpayer may claim a credit based on loan payments actually made to a relevant 
lender or lenders 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 I, 2015, only with respect to loan payment amounts paid by the taxpayer 
during that part of the taxable year that the qualified 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. Refiaaaoed For tax years beginning before January 1, 2015, 
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. 
For tax years beginning on 
or after January 1, 2015. refinanced loans or consolidated loans that are part of the 
qualified individual's financial aid package are eligible for the credit under this 
section if the refinanced loans or consolidated loans remain separate from other debt, 
except for debt incurred in an educational program. but only in proportion to the 
portion of the loan payments that are otherwise eligible 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 by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SENA TE AMENDMENT 
~'o 
~~ 
IO 
SENA TE AMENDMENT ·A" to S.P. 678, L.D. 1657 
SUMMARY 
This amendment changes the availability of the educational opportunity tax credit for 
a consolidated loan by: 
1. Allowing the portion of the consolidated loan that is a qualifying educational loan 
to be eligible for the tax credit beginning with tax year 2015; and 
2. 
Providing that only a qualifying educational loan that is consolidated with a 
nonqualifying educational loan is eligible. 
(Senator V 
COUN 
FISCAL NOTE REQUIRED 
Seeatt~d) ·~ 
SENA TE AMENDMENT 
• 
Approved: 04/11/16 
feae 
LD 1657 
LR2724(04) 
An Act To Simplify and Expand the Educational Opportunity Tax Credit 
Fiscal Note for Senate Amendment 'if to Original Bill 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Sponsor: Sen. Valentino of York 
(; 
~ 
Fiscal Note Required: Yes 
l 5-f"OC\} 
Fiscal Note 
FY2015-16 
$0 
$0 
$0 
FY 2016-17 
$24,500 
($24,500) 
($500) 
Projections 
FY 2017-18 
$0 
$0 
$0 
Projections 
FY 2018-19 
$0 
$0 
$0 
This amendment adds the provisions of the committee amendment to LD 1505 into the bill. PL 2015, c. 267, Pt. QQQ 
expanded the educational opportunity tax credit to include consolidated loans for tax years beginning on or after 
January 1, 2016. The amendment provides that consolidated loans are eligible in tax year 2015 provided that the 
consolidated loans only include educational loans. The incremental effect of adding LD 1505 is to reduce General 
Fund revenue by $24,500 in fiscal year 2016-17 and reduce Local Government Fund revenue by $500 in fiscal year 
2016-17. 
LR2724(04) - Fiscal Note - Page I of 1