An Act To Provide Tax Credits for Adult Day Care and Respite and Hospice Care
Maine Legislature, Session 127, LD 0787
Committee: Taxation
Sponsors: HARLOW, ALLEY, GOLDEN, RYKERSON, SHORT, STANLEY
Amends: 36 MRSA §5218

Legislative Document 
No. 787 
H.P. 536 
House of Representatives, March 10, 2015 
An Act To Provide Tax Credits for Adult Day Care and Respite and 
Hospice Care 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative HARLOW of Portland. 
Cosponsored by Representatives: ALLEY of Beals, GOLDEN of Lewiston, RYKERSON of 
Kittery, SHORT of Pittsfield, STANLEY of Medway. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5218, as amended by PL 2005, c. 519, Pt. DD, §§1 to 3, is 
further amended to read: 
§5218.  Income tax credit for child and adult care expenses 
1.  Resident taxpayer.  A resident individual is allowed a credit against the tax 
otherwise due under this Part in the amount of 25% of the federal tax credit allowable for 
child and dependent care expenses in the same tax year, except that for tax years 
beginning in 2003, 2004 and 2005, the applicable percentage is 21.5% instead of 25% as 
modified under subsection 1-A. 
1-A.  Adult care expenses.  The modified tax credit available under this section is 
equal to the federal tax credit allowable for child and dependent care expenses calculated 
as if it included expenses paid by the taxpayer for adult day care, respite care and hospice 
care. 
2.  Nonresident taxpayer.  A nonresident individual is allowed a credit against the 
tax otherwise due under this Part in the amount of 25% of the federal tax credit allowable 
for child and dependent care expenses, as modified under subsection 1-A, multiplied by 
the ratio of the individual's Maine adjusted gross income, as defined in section 5102, 
subsection 1-C, paragraph B, to the individual's entire federal adjusted gross income, as 
modified by section 5122, except that for tax years beginning in 2003, 2004 and 2005, the 
applicable percentage is 21.5% instead of 25%. 
2-A.  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%, except that for tax years beginning in 2003, 
2004 and 2005 the applicable percentage is 21.5%, instead of 25%, of the federal tax 
credit allowable for child and dependent care expenses, as modified under subsection 
1-A, multiplied by a ratio, the numerator of which is the individual's Maine adjusted 
gross income as defined in section 5102, subsection 1-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 1-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. 
3.  Quality child care services.  The credit provided by subsections 1, 2 and 2-A 
doubles in amount if the child care expenses were incurred through the use of quality 
child care services as defined in section 5219-Q, subsection 1. 
4.  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 1-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 1-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 1-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. 
SUMMARY 
This bill expands the income tax credit for child and dependent care expenses to 
include expenses paid for adult day care, respite care and hospice care.