An Act To Provide Tax Credits for Adult Day Care and Respite and Hospice Care
Maine Legislature, Session 127, LD 0787
Senate Amendment SA_A_S72 (Senate)
Amends: 36 MRSA §5125, 36 MRSA §5218-A

SENATE AMENDMENT" 11- " to H.P. 536, L.D. 787, Bill, "An Act To Provide 
Tax Credits for Adult Day Care and Respite and Hospice Care" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §5125, sub-§3, ~, as amended by PL 2011, c. 380, Pt. N, §8 
and affected by § § 19 and 20, is further amended to read: 
D. 
Reduced by any amount attributable to interest or expenses incurred in the 
production of income exempt from tax under this Part; afld 
Sec. 2. 36 MRSA §5125, sub-§3, ~, as amended by PL 2011, c. 380, Pt. N, §9 
and affected by § § 19 and 20, is further amended to read: 
E. Reduced by the amount attributable to any contribution that qualified for and was 
actually utilized as a credit under section 52l6-C,·; and 
Sec. 3. 36 MRSA §5125, sub-§3, ~G is enacted to read: 
G. Reduced by the amount of federal itemized deductions included in the base for 
calculating the credit under section 5218-A. 
Sec. 4. 36 MRSA §5218-A is enacted to read: 
§S218-A. Income tax credit for adult dependent care expenses 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Adult day care" has the same meaning as in Title 22, section 6202, subsection 1. 
B. "Adult dependent care expenses" means expenses paid during the taxable year for 
adult day care, hospice services and respite care for a qualifying individual to the 
extent not used to calculate the credit under the Code, Section 21. 
C. "Applicable percentage" has the same meaning as in the Code, Section 21(a)(2). 
D. "Hospice services" has the same meaning as in Title 22, section 8621, subsection 
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SENATE AMENDMENT 
R. of S. 
SENATE AMENDMENT" A" to H.P. 536, L.D. 787 
E. "Qualifying individual" has the same meaning as in the Code, Section 21(b)(1)(B) 
and Section 21(b)(l)(C), except that "qualifying individual" does not include an 
individual who has not attained 21 years of age as of the last day of the taxpayer's tax 
year. 
F. "Respite care" has the same meaning as in Title 34-B, section 6201, subsection 
2-A. 
2. Credit for resident taxpayer. A resident individual is allowed a credit against 
the tax otherwise due under this Part in the amount of 25% of the applicable percentage 
of adult dependent care expenses paid during the taxable year. 
3. Credit for nonresident taxpayer. A nonresident individual is allowed a credit 
against the tax otherwise due under this Part in the amount of 25% of the applicable 
percentage of adult dependent care expenses paid during the taxable year, multiplied by 
the ratio of the individual's Maine adjusted gross income, as defined in section 5102, 
subsection l-C, paragraph B, to the individual's entire federal adjusted gross income, as 
modified by section 5122. 
4. Credit for part-year resident taxpayer. An individual who files a return as a 
part-year resident in accordance with section 5224-A is allowed a credit against the tax 
otherwise due under this Part in the amount of 25% of the applicable percentage of adult 
dependent care expenses paid during the taxable year, multiplied by a ratio, the numerator 
of which is the individual's Maine adjusted gross income as defined in section 5102, 
subsection l-C, paragraph A for that portion of the taxable year during which the 
individual was a resident plus the individual's Maine adjusted gross income as defined in 
section 5102, subsection l-C, paragraph B for that portion of the taxable year during 
which the individual was a nonresident and the denominator of which is the individual's 
entire federal adjusted gross income, as modified by section 5122. 
5. Maximum expenses. Adult dependent care expenses allowed under this section 
may not exceed $3,000 for one qualifying individual or $6,000 for 2 or more qualifying 
individuals. 
6. Refund. The credit allowed by this section may result in a refund of up to $500. 
In the case of a nonresident individual, the refundable portion of the credit may not 
exceed $500 multiplied by the ratio of the individual's Maine adjusted gross income, as 
defined in section 5102, subsection l-C, paragraph B, to the individual's entire federal 
adjusted gross income, as modified by section 5122. In the case of an individual who 
files a return as a part-year resident in accordance with section 5224-A, the refundable 
portion of the credit may not exceed $500 multiplied by a ratio, the numerator of which is 
the individual's Maine adjusted gross income as defined in section 5102, subsection l-C, 
paragraph A for that portion of the taxable year during which the individual was a 
resident plus the individual's Maine adjusted gross income as defined in section 5102, 
subsection l-C, paragraph B for that portion of the taxable year during which the 
individual was a nonresident and the denominator of which is the individual's entire 
federal adjusted gross income, as modified by section 5122. 
Sec. 5. Application. This Act applies to tax years beginning on or after January 1, 
2015.' 
SENATE AMENDMENT 
• I 
R. af S. 
SENATE AMENDMENT" A" to H.P. 536, L.D. 787 
SUMMARY 
This amendment clarifies the intent of the bi11 by specifying that the credit is for 
expenses paid for a dependent for adult day care, hospice services and respite care. To 
distinguish the new credit from the child care expenses credit, the adult dependent care 
expenses credit only applies to dependents who are at least 21 years of age. Also, unlike 
the child care expenses credit, the expenses do not have to be incurred to enable the 
taxpayer to be gainfully employed. Like the child care expenses credit, the expenses may 
not exceed $3,000 for one dependent or $6,000 for 2 or more dependents and the credit is 
refundable up to $500. 
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SPONSOREDBY: __ ~~ 
____ ~ 
______________ _ 
(Senator SA VIELLO) 
COUNTY: Franklin 
SENATE AMENDMENT 
Revised: 05/06/15 
.mu~ 
LD787 
LR 1317(03) 
An Act To Provide Tax Credits for Adult Day Care and Respite and Hospice Care 
Fiscal Note for Senate Amendment ,,~, to Original Bill 
( S -, '2-) 
Sponsor: Sen. Saviello of Franklin 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
$47,500 
($47,500) 
($2,500) 
FY2016-17 
$47,500 
($47,500) 
($2,500) 
Projections 
FY 2017-18 
$47,500 
($47,500) 
($2,500) 
Projections 
FY2018-19 
$47,500 
($47,500) 
($2,500) 
This amendment specifies that the credit is for expenses paid for a dependent for adult day care, hospice services and 
respite care. The incremental effect over the committee amendment is an additional annual reduction in General Fund 
revenues of $47,500 and a reduction in Local Government Fund revenues of$2,500 beginning in fiscal year 2015-16. 
LR1317(03) - Fiscal Note - Page 1 of 1