An Act To Reduce Student Loan Debt through an Expansion of the Educational Opportunity Tax Credit
Maine Legislature, Session 127, LD 0898
Committee: Taxation
Sponsors: CHENETTE, ALFOND, DAUGHTRY, EVES, GOODE, NADEAU, POULIOT, RUSSELL, VALENTINO
Amends: 36 MRSA §5217-D

Legislative Document 
No. 898 
H.P. 617 
House of Representatives, March 12, 2015 
An Act To Reduce Student Loan Debt through an Expansion of the 
Educational Opportunity Tax Credit 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative CHENETTE of Saco. 
Cosponsored by Senator ALFOND of Cumberland and 
Representatives: DAUGHTRY of Brunswick, Speaker EVES of North Berwick, GOODE of 
Bangor, NADEAU of Winslow, POULIOT of Augusta, RUSSELL of Portland, Senator: 
VALENTINO of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5217-D, sub-§1, ¶A, as amended by PL 2013, c. 525, §15, is 
further amended to read: 
A.  "Benchmark loan payment" means the monthly loan payment for the amount of 
the principal cap paid over 10 years at the interest rate for federally subsidized 
Stafford loans under 20 United States Code, Section 1077a applicable during the 
individual's last year of enrollment at an accredited Maine community college, 
college or university or an accredited non-Maine community college, college or 
university under paragraph G, subparagraph (1), division (b). 
Sec. 2.  36 MRSA §5217-D, sub-§1, ¶¶B-1 and D-1, as enacted by PL 2013, c. 
525, §15, are amended to read: 
B-1.  "Financial aid package" means financial aid obtained by a student after 
December 31, 2007 for attendance at an accredited Maine community college, 
college or university or an accredited non-Maine community college, college or 
university under paragraph G, subparagraph (1), division (b) after December 31, 
2007.  For purposes of a qualified individual claiming a credit under this section for 
tax years beginning on or after January 1, 2013, the financial aid package may 
include financial aid obtained for up to 30 credit hours of course work at an 
accredited non-Maine community college, college or university earned prior to 
transfer to an accredited Maine community college, college or university, if the 30 
credit hours were earned after December 31, 2007 and the transfer occurred after 
December 31, 2012.  For purposes of an employer claiming a credit under this section 
for tax years beginning on or after January 1, 2013, the financial aid package may 
include financial aid obtained by a qualified employee after December 31, 2007 for 
attendance at an accredited non-Maine community college, college or university after 
December 31, 2007.  The financial aid package may include private loans or less than 
the full amount of loans under federal programs, depending on the practices of the 
accredited Maine or non-Maine community college, college or university.  Loans are 
includable in the financial aid package only if entered into prior to July 1, 2023. 
D-1.  "Principal cap" means: 
(1)  For an individual graduating from an accredited Maine community college, 
college or university or an accredited non-Maine community college, college or 
university under paragraph G, subparagraph (1), division (b) 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 or an accredited non-
Maine community college, college or university under paragraph G, 
subparagraph (1), division (b) on or after January 1, 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 or an accredited non-
Maine community college, college or university under paragraph G, 
subparagraph (1), division (b) 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. 
Sec. 3.  36 MRSA §5217-D, sub-§1, ¶G, as amended by PL 2013, c. 525, §15, is 
further amended to read: 
G.  "Qualified individual" means an individual, including the spouse filing a joint 
return with the individual under section 5221, who is eligible for the credit provided 
in this section.  An individual is eligible for the credit if the individual: 
(1)  Attended, and obtained an associate or a bachelor's degree from, an 
accredited Maine community college, college or university after December 31, 
2007.  The individual need not obtain the degree from the institution in which 
that individual originally enrolled, as long as all course work toward the degree is 
performed at an accredited Maine community college, college or university, 
except that an individual who transfers to an accredited Maine community 
college, college or university after December 31, 2012 from outside the State and 
earned no more than 30 credit hours of course work toward the degree at an 
accredited non-Maine community college, college or university after December 
31, 2007 and prior to the transfer is eligible for the credit if all other eligibility 
criteria are met.  Program eligibility for such an individual must be determined as 
if the commencement of course work at the relevant accredited Maine 
community college, college or university was the commencement of course work 
for the degree program as a whole;: 
(a)  An accredited Maine community college, college or university after 
December 31, 2007. The individual need not obtain the degree from the 
institution in which that individual originally enrolled, as long as all course 
work toward the degree is performed at an accredited Maine community 
college, college or university, except that an individual who transfers to an 
accredited Maine community college, college or university after December 
31, 2012 from outside the State and earned no more than 30 credit hours of 
course work toward the degree at an accredited non-Maine community 
college, college or university after December 31, 2007 and prior to the 
transfer is eligible for the credit if all other eligibility criteria are met. 
Program eligibility for such an individual must be determined as if the 
commencement of course work at the relevant accredited Maine community 
college, college or university was the commencement of course work for the 
degree program as a whole; or 
(b)  An accredited non-Maine community college, college or university in a 
course of study available only at a public institution outside the State as part 
of the regional student program offered by the New England Board of Higher 
Education pursuant to Title 20-A, chapter 413 after December 31, 2007; 
(2)  Was a Maine resident while in attendance at the accredited Maine 
community college, college or university or the accredited non-Maine community 
college, college or university under subparagraph (1), division (b).  For purposes 
of this subparagraph, "Maine resident" has the same meaning as in Title 20-A, 
section 12541, subsection 5; 
(3)  Lived in Maine while pursuing the degree, excepting periods when it was 
reasonably necessary for the individual to live elsewhere as part of the relevant 
institution's academic programs or while pursuing course work at an accredited 
non-Maine community college, college or university as provided in subparagraph 
(1); 
(4)  During the taxable year, was a resident individual; and 
(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. 
Sec. 4.  Application.  This Act applies to tax years beginning on or after January 1, 
2016. 
SUMMARY 
This bill allows students who are pursuing or have pursued a course of study 
available only at a public institution outside the State as part of the New England regional 
student program offered by the New England Board of Higher Education to be eligible 
for the educational opportunity tax credit, starting with the tax year beginning January 1, 
2016.