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: Taxation
Sponsors: McCREIGHT, LANGLEY, BLUME, DAUGHTRY, HEAD, PIERCE, POULIOT, TEPLER, LIBBY, ROSEN

Legislative Document 
No. 1505 
H.P. 1028 
House of Representatives, December 23, 2015 
An Act To Facilitate Student Loan Repayment by Allowing 
Graduates To Claim Educational Opportunity Tax Credits on 
Eligible Portions of Consolidated Loans 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 21, 2015.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
ROBERT B. HUNT 
Clerk 
Presented by Representative McCREIGHT of Harpswell. 
Cosponsored by Senator LANGLEY of Hancock and 
Representatives: BLUME of York, DAUGHTRY of Brunswick, HEAD of Bethel, PIERCE of 
Falmouth, POULIOT of Augusta, TEPLER of Topsham, Senators: LIBBY of Androscoggin, 
ROSEN of Hancock. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, in Public Law 2015, chapter 267, certain changes were made to the 
educational opportunity tax credit, including allowing eligible student loans that had been 
consolidated with ineligible loans to remain eligible for the tax credit; and 
Whereas, these changes do not apply until tax years beginning on or after January 1, 
2016; and 
Whereas, in order to meet the purpose of the tax credit and provide some relief to 
graduates with eligible student loans, it is imperative that any delays in providing this 
relief be eliminated as soon as possible; and  
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  PL 2015, c. 267, Pt. QQQ, §6 is amended to read: 
Sec. QQQ-6.  Application.  This Part applies to tax years beginning on or after 
January 1, 2016, except that the section of this Part that amends the Maine Revised 
Statutes, Title 36, section 5217-D, subsection 2, paragraph B applies to tax years 
beginning on or after January 1, 2015. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
Currently, under the tax credit for educational opportunity, an individual is allowed a 
credit against income tax owed by that individual for payments made on qualified student 
loans used to obtain a postsecondary degree.  Prior to tax years beginning January 1, 
2016, however, if a student loan eligible for the tax credit is consolidated with an 
ineligible loan, the otherwise eligible student loan is rendered ineligible by the 
consolidation.  Public Law 2015, chapter 267 allows an eligible student loan consolidated 
with an ineligible loan to be eligible for the tax credit, but only for tax years beginning on 
or after January 1, 2016. 
This bill provides that the change made by Public Law 2015, chapter 267 regarding 
consolidated student loans applies to tax years beginning on or after January 1, 2015.