An Act To Make Technical Changes to Recently Enacted Legislation
Maine Legislature, Session 127, LD 1452
Committee: Judiciary
Sponsors: McCORMICK
Amends: 20-A MRSA §12545, 36 MRSA §199-C, 36 MRSA §5122, 36 MRSA §5213-A, 36 MRSA §5217-D, 36 MRSA §5219-S

Legislative Document 
No. 1452 
S.P. 554 
In Senate, June 30, 2015 
An Act To Make Technical Changes to Recently Enacted Legislation 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Judiciary suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator McCORMICK of Kennebec. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA §12545, as enacted by PL 2011, c. 665, §5, is amended to 
read: 
§12545.  Report 
By February 1, 2021, each accredited Maine community college, college and 
university, as defined in section 12541, subsection 1, shall report to the department on 
efforts to promote and enroll individuals in the program and to train admissions and 
financial aid staff about the program.  By March 1, 2021, the department shall report 
findings and recommendations regarding the program to the joint standing committee of 
the Legislature having jurisdiction over education and cultural affairs and the joint 
standing committee of the Legislature having jurisdiction over taxation matters.  By 
March 1, 2021, the Department of Administrative and Financial Services, Bureau of 
Revenue Services, Office of Tax Policy shall report on implementation of the educational 
opportunity tax credit, including statistics on credits claimed, to the joint standing 
committee of the Legislature having jurisdiction over education and cultural affairs and 
the joint standing committee of the Legislature having jurisdiction over taxation matters.  
The Office of Tax Policy, in conjunction with the State Economist and the Department of 
Labor, shall include in its report an analysis of the costs of the credits claimed and the 
impact of the program on the State's labor force.  After receipt and review of the 
information required under this section, the joint standing committee of the Legislature 
having jurisdiction over education and cultural affairs or the joint standing committee of 
the Legislature having jurisdiction over taxation matters may report out to the Legislature 
a bill regarding the program. 
Sec. 2.  36 MRSA §199-C, sub-§3, as enacted by PL 2011, c. 665, §6, is amended 
to read: 
3.  Specific tax expenditure review.  By June 1, 2021, the committee shall review 
the income tax credit under section 5217-D to determine whether the credit should be 
retained, repealed or modified. The committee shall consider information provided by the 
Office of Tax Policy within the bureau and the Department of Education pursuant to Title 
20-A, section 12545. 
Sec. 3.  36 MRSA §5122, sub-§2, ¶M-1, as amended by PL 2015, c. 267, Pt. DD, 
§9, is further amended to read: 
M-1.  For tax years beginning on or after January 1, 2014 but before January 1, 2016, 
for each individual who is a primary recipient of retirement plan benefits under an 
employee retirement plan or an individual retirement account, an amount that is the 
lesser of the aggregate of retirement plan benefits under employee retirement plans or 
individual retirement accounts included in the individual's federal adjusted gross 
income and the pension deduction amount reduced by the total amount of the 
individual's social security benefits and railroad retirement benefits paid by the 
United States, but not less than $0. 
For purposes of this paragraph, the following terms have the following meanings. 
(1)  "Employee retirement plan" means a state or federal retirement plan or any 
other retirement benefit plan established and maintained by an employer for the 
benefit of its employees under the Code, Section 401(a), Section 403 or Section 
457(b), except that distributions made pursuant to a Section 457(b) plan are not 
eligible for the deduction provided by this paragraph if they are made prior to age 
and are not part of a series of substantially equal periodic payments made for 
the life of the primary recipient or the joint lives of the primary recipient and that 
recipient's designated beneficiary.  "Employee retirement plan" does not include 
a military retirement plan or survivor benefits under such a plan. 
(2)  "Individual retirement account" means an individual retirement account 
under Section 408 of the Code, a Roth IRA under Section 408A of the Code, a 
simplified employee pension under Section 408(k) of the Code or a simple 
retirement account for employees under Section 408(p) of the Code. 
(3)  "Military retirement plan" means retirement plan benefits received as a result 
of service in the active or reserve components of the Army, Navy, Air Force, 
Marines or Coast Guard. 
(4)  "Pension deduction amount" means $10,000 for tax years beginning on or 
after January 1, 2014. 
(5)  "Primary recipient" means the individual upon whose earnings or 
contributions the retirement plan benefits are based or the surviving spouse of 
that individual. 
(6)  "Retirement plan benefits" means employee retirement plan benefits, except 
pick-up contributions for which a subtraction is allowed under paragraph E, 
reported as pension or annuity income for federal income tax purposes and 
individual retirement account benefits reported as individual retirement account 
distributions for federal income tax purposes.  "Retirement plan benefits" does 
not include distributions that are subject to the tax imposed by the Code, Section 
72(t); 
Sec. 4.  36 MRSA §5213-A, sub-§1, ¶A, as enacted by PL 2015, c. 267, Pt. DD, 
§19, is amended to read: 
A.  "Base credit" means: 
(1)  For an individual income tax return claiming one personal exemption, $100 
for tax years beginning in 2016 and $125 for tax years beginning on or after 
January 1, 2017; 
(2)  For an individual income tax return claiming 2 personal exemptions, $140 for 
tax years beginning in 2016 and $175 for tax years beginning on or after January 
1, 2017; 
(3)  For an individual income tax return claiming 3 personal exemptions, $160 for 
tax years beginning in 2016 and $200 for tax years beginning on or after January 
1, 2017; and 
(4)  For an individual income tax return claiming 4 or more personal exemptions, 
$180 for tax years beginning in 2016 and $225 for tax years beginning on or after 
January 1, 2017. 
For the purposes of this paragraph, personal exemption does not include a personal 
exemption for an individual who is incarcerated. 
Sec. 5.  36 MRSA §5217-D, sub-§1, ¶B-1, as amended by PL 2015, c. 267, Pt. 
QQQ, §2, is further 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 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 a qualified individual 
claiming a credit under this section for tax years beginning on or after January 1, 
2016, who is eligible for a credit under paragraph G, subparagraph (1), division (b), 
the financial aid package may include financial aid obtained by a student for 
attendance at an accredited non-Maine community college, college or university 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, 2016, who is eligible for a 
credit under paragraph G, subparagraph (1), division (c), the financial aid package 
may include financial aid obtained by a student for attendance at an accredited Maine 
college or university after December 31, 2007.  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. 
Sec. 6.  36 MRSA §5217-D, sub-§1, ¶G, as amended by PL 2015, c. 267, Pt. 
QQQ, §3, 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: 
(a)  An associate or bachelor's degree from an accredited Maine community 
college, college or university after December 31, 2007 but before January 1, 
2016.  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 but before 
January 1, 2016 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; 
(b)  An associate or bachelor's degree from an accredited Maine or non-
Maine community college, college or university after December 31, 2007 
2015; or 
(c)  A graduate degree from an accredited Maine college or university after 
December 31, 2007 2015; 
(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. 7.  36 MRSA §5217-D, sub-§3, as amended by PL 2013, c. 525, §15, is 
further amended to read: 
3.  Calculation of the credit; qualified individuals.   Subject to subsection 2 and 
except as provided in this subsection, the credit with respect to a qualified individual is 
equal to the amount determined under paragraph A or paragraph B, whichever is less, 
multiplied by the proration factor: 
A.   The benchmark loan payment multiplied by the number of months during the 
taxable year in which the taxpayer made loan payments; or 
B.   The monthly loan payment amount multiplied by the number of months during 
the taxable year in which the taxpayer made loan payments. 
The credit under this subsection for an individual a qualified individual under subsection 
1, paragraph G, subparagraph (1), division (a) who transferred to an accredited Maine 
community college, college or university from an accredited non-Maine community 
college, college or university after December 31, 2012 but before January 1, 2016 and 
who earned no more than 30 credit hours of course work toward the degree at an 
accredited non-Maine community college, college or university is equal to 50% of the 
amount otherwise determined under this section in the case of an associate degree and 
equal to 75% of the amount otherwise determined under this section in the case of a 
bachelor's degree. 
Notwithstanding subsection 2, paragraph C, the credit under this subsection is refundable 
to the extent the credit is based on loans included in the financial aid package acquired to 
obtain a bachelor's degree or associate degree in science, technology, engineering or 
mathematics.  For tax years beginning on or after January 1, 2016, the credit under this 
subsection is refundable to the extent the credit is based on loans included in the financial 
aid package acquired to obtain an associate degree. 
For purposes of this subsection, the proration factor is the amount derived by dividing the 
total number of academic credit hours earned for a bachelor's or associate degree after 
December 31, 2007 by the total number of academic credit hours earned for the 
bachelor's or associate degree. 
Sec. 8.  36 MRSA §5219-S, sub-§4, as amended by PL 2015, c. 267, Pt. DD, §31, 
is further amended to read: 
4.  Limitation.  The credit allowed by this section may not reduce the Maine income 
tax to less than zero, except that for tax years beginning on or after January 1, 2016, the 
credit allowed under subsections 1 and 3 is refundable. 
Sec. 9.  Appropriations and allocations.  The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Homestead Property Tax Exemption Reimbursement 0886 
Initiative: Deappropriates funds no longer needed for the Homestead Property Tax 
Exemption Reimbursement program as a result of changes made in the 2016-2017 
biennial budget. 
Revenue Services, Bureau of 0002 
Initiative: Provides funding for one Tax Examiner position effective January 1, 2017 and 
related All Other costs to review and process additional claims for the educational 
opportunity tax credit. 
GENERAL FUND 
2015-16
2016-17
All Other 
$0 ($27,975,000)
GENERAL FUND TOTAL 
$0 ($27,975,000)
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF  
Office of Tourism 0577 
Initiative: Deallocates funds no longer needed as a result of changes made in the 2016-
2017 biennial budget. 
GENERAL FUND 
2015-16
2016-17
POSITIONS - LEGISLATIVE COUNT 
0.000
1.000
Personal Services 
$0
$36,005
All Other 
$0
$3,895
GENERAL FUND TOTAL 
$0
$39,900
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
2015-16
2016-17
GENERAL FUND 
$0 ($27,935,100)
DEPARTMENT TOTAL - ALL FUNDS 
$0 ($27,935,100)
OTHER SPECIAL REVENUE FUNDS 
2015-16
2016-17
All Other 
$0
($1,710,535)
OTHER SPECIAL REVENUE FUNDS TOTAL 
$0
($1,710,535)
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT OF  
DEPARTMENT TOTALS 
2015-16
2016-17
OTHER SPECIAL REVENUE FUNDS 
$0
($1,710,535)
DEPARTMENT TOTAL - ALL FUNDS 
$0
($1,710,535)
SECTION TOTALS 
2015-16
2016-17
GENERAL FUND 
$0 ($27,935,100)
OTHER SPECIAL REVENUE FUNDS 
$0
($1,710,535)
SECTION TOTAL - ALL FUNDS 
$0 ($29,645,635)
SUMMARY 
This bill adds language to income tax changes in Public Law 2015, chapter 267 to 
include language that was inadvertently omitted in an earlier amendment.  The bill 
updates language to reflect changes to the income tax exemption for pensions, includes 
the correct amounts for 2016 tax years for the base credit under the sales tax fairness 
credit and provides that the refundability of the earned income tax credit applies only to 
residents and part-year residents of the State. 
This bill also amends the laws governing the Job Creation Through Educational 
Opportunity Program as follows. 
1.  Current law requires that, by March 1, 2021, the Department of Administrative 
and Financial Services, Bureau of Revenue Services report on implementation of the 
educational opportunity tax credit.  This amendment requires that this report include an 
analysis of the costs of the credits claimed and the impact of the program on job creation 
in the State. 
2.  It restores language that was removed by Public Law 2015, chapter 267 providing 
that, for a qualified individual claiming a credit 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. 
3.  It provides that a qualified individual may claim a credit if the individual received 
an associate or bachelor's degree from an accredited non-Maine community college, 
college or university after December 31, 2015, rather than after December 31, 2007. 
4.  It provides that a qualified individual may claim a credit if the individual received 
a graduate degree from an accredited Maine college or university after December 31, 
2015, rather than after December 31, 2007. 
5.  It provides that the credit under the Job Creation Through Educational 
Opportunity Program is refundable to the extent the credit is based on loans included in 
the financial aid package acquired to obtain an associate degree. 
Approved: 06/29/15
LD     
LR 2086(01)
FY 2015-16
FY 2016-17
Projections 
FY 2017-18
Projections 
FY 2018-19
Net Cost (Savings)
General Fund
$0
($27,975,000)
($22,504,473)
($24,135,719)
Appropriations/Allocations
General Fund
$0
($27,935,100)
($21,532,623)
($22,178,719)
Other Special Revenue Funds
$0
($1,710,535)
($1,803,330)
($1,898,400)
Revenue
General Fund
$0
$39,900
$971,850
$1,957,000
Other Special Revenue Funds
$0
$2,100
$51,150
$103,000
Fiscal Detail and Notes
Fiscal Note
This bill makes technical changes to statutory language related to the educational opportunity tax credit and the sales 
tax fairness credit changes included in the 2016-2017 Biennial Budget (LD 1019) as engrossed. These changes result 
in an increase in General Fund revenue of $39,900 in 2016-17 above the revenue estimates assumed for LD 1019 as 
engrossed.  This bill also removes an appropriation of $27,975,000 for 2016-17 included in Part A of LD 1019 as 
engrossed that is no longer needed for the Homestead Property Tax Exemption Reimbursement program and should 
have been removed as a result of the Floor Amendment to the Committee Amendment to LD 1019 as engrossed.  Part 
J of  LD 1019 as engrossed limits the amount of spending for the Homestead Property Tax Exemption Reimbursement 
program to the appropriated amount  included in Part UUUU of LD 1019, making the appropriation in Part A 
unnecessary.  This bill also provides funding for one Tax Examiner position and related costs to review and process 
additional claims for the educational opportunity tax credit.
An Act To Make Technical Changes to Recently Enacted Legislation
Fiscal Note for Original Bill
Sponsor: Sen. McCormick of Kennebec
Fiscal Note Required: Yes
LR2086(01) - Fiscal Note - Page 1 of 1