An Act To Facilitate Student Loan Repayment by Allowing Graduates To Claim Educational Opportunity Tax Credits on Eligible Portions of Consolidated Loans
Maine Legislature, Session 127, LD 1505
Committee Amendment CA_A_H512 (House)
Amends: 36 MRSA §5217-D

COMMITTEE AMENDMENT "/1 " to H.P. 1028, L.D. 1505, Bill, "An Act To 
Facilitate Student Loan Repayment by Allowing Graduates To Claim Educational 
Opportunity Tax Credits on Eligible Portions of Consolidated Loans" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 36 MRSA §5217-D, sub-§2, ~' 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 1, 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. Refman.eed 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.' 
COMMITTEE AMENDMENT 
\\ o\ s. 
COMMITIEE AMENDMENT" J1 "to H.P. 1028, L.D. 1505 
SUMMARY 
This amendment changes the availability of the educational opportunity tax credit for 
a consolidated loan by: 
1. Retaining the purpose of the bill to allow 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. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
• 
Approved: 02/04/16 
..tvae 
LD 1505 
LR2193(02) 
An Act To Facilitate Student Loan Repayment by Allowing Graduates To Claim Educational 
Opportunity Tax Credits on Eligible Portions of Consolidated Loans 
Fiscal Note for Bill as Amended by Committee Amendment ,,Ji ( H~ !,/J.) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
FY 2016-17 
Projections 
FY 2017-18 
Projections 
FY 2018-19 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$24,500 
($24,500) 
($500) 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
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. This legislation provides that consolidated loans are eligible in tax year 2015 
provided that the consolidated loans only include educational loans. This would reduce General Fund revenue by 
$24,500 in fiscal year 2015-16 and reduce Local Government Fund revenue by $500 in fiscal year 2015-16. 
LR2193(02) - Fiscal Note - Page 1 of 1