An Act To Support Maine Families by Increasing the Dependent Care Credit
Maine Legislature, Session 128, LD 1144
Committee: Taxation
Sponsors: HERBIG, CUSHING, BICKFORD, COOPER, GRANT, TERRY, CHENETTE
Amends: 36 MRSA §5218

Legislative Document
No. 1144
H.P. 807
House of Representatives, March 23, 2017
An Act To Support Maine Families by Increasing the Dependent 
Care Credit
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative HERBIG of Belfast.
Cosponsored by Senator CUSHING of Penobscot and
Representatives: BICKFORD of Auburn, COOPER of Yarmouth, GRANT of Gardiner, 
McCREIGHT of Harpswell, TERRY of Gorham, Senator: CHENETTE of York.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5218, as amended by PL 2015, c. 267, Pt. DD, §24 and 
affected by §34, is further amended to read: 
§5218.  Income tax credit for child 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 or after 2017, the applicable percentage is 21.5% 50% 
instead of 25%. 
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 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 or after 2017, the applicable percentage is 
21.5% 50% 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 or after 2017, the applicable percentage is 21.5% 50%, instead of 25%, of 
the federal tax credit allowable for child and dependent care expenses 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 
except, in the case of a nonresident individual, the credit may not reduce the Maine 
income tax to less than zero.  In For tax years beginning in or after 2017, the refundable 
amount is $750 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 or, for tax years beginning in or after 2017, $750 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 increases the income tax credit for child care expenses from 25% to 50% of 
the federal tax credit allowable for child and dependent care expenses and increases the 
amount that is refundable from $500 to $750.  The increase applies to tax years beginning 
in or after 2017.