An Act To Provide an Income Tax Credit for Students Returning to College
Maine Legislature, Session 128, LD 0946
Committee Amendment CA_A_H386 (House)
Amends: 36 MRSA §5217-D, 36 MRSA §5217-E

COMMITTEE AMENDMENT "A" to H.P. 674, L.D. 946, Bill, "An Act To 
Provide an Income Tax Credit for Students Returning to College" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
1Sec. 1. 36 MRSA §5217-D, sub-§6 is enacted to read: 
6. Exclusion. The credit provided under this section is not allowed to an individual 
who has claimed a credit for the same loan under section 5217-E. 
Sec. 2. 36 MRSA §5217-E is enacted to read: 
§5217-E. Student loan credit 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
11Eligible individual
means an individual who has one or more qualified 
education loans related to an undergraduate or graduate degree program at a 
postsecondary educational institution. 
B. 
11Postsecondary educational institution
means a postsecondary educational 
institution participating in the federal Pell Grant program under Title N of the Higher 
Education Act of 1965, Public Law 89-329. 
C. 
11Qualified education loan
has the same meaning as in Section 221(d)(l) of the 
Code, but is limited to indebtedness incurred on behalf of the eligible individual or 
the eligible individual1s spouse. 
2. Credit allowed. For tax years beginning on or after January l, 2017, an eligible 
individual or the parent of an eligible individual is allowed a credit against the tax due 
under this Part. 
A. The credit for an eligible individual equals the amount the eligible individual paid 
during the taxable year on principal and interest on qualified education loans up to 
$5,000. 
COMMITTEE AMENDMENT 
A. of S. 
COMMIITEE AMENDMENT«/} to H.P. 674, L.D. 946 
B. The credit for the parent of an eligible individual equals the amount the parent of 
the eligible individual paid during the taxable year to pay principal and interest on 
qualified education loans of the eligible individual, up to $5,000, less the amount of 
credit allowed to the eligible individual under paragraph A. 
C. For married individuals filing joint returns. the maximum credit is reduced by $1 
for every $6 of Maine adjusted gross income in excess of $130,000. For all other 
filers. the maximum credit is reduced by $1 for evety $3 of Maine adjusted gross 
income in excess of $65,000. In no case is the maximum credit less than zero. 
3. Credit refundable. The credit provided under this section is refundable. 
4. Exclusion. The credit provided under this section is not allowed to an individual 
who has claimed a credit for the same loan under section 5217-D. 
Sec. 3. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides funding for one Tax Examiner position and related costs to establish 
and administer a student loan credit. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2017-18 
2018-19 
1.000 
1.000 
$57,096 
$77,265 
$27,429 
$4,349 
$84,525 
$81,614 
This amendment replaces the bill, which is a concept draft. 
This amendment 
provides a refundable income tax credit of up to $5,000 for eligible individuals and 
parents of eligible individuals making payments of interest and principal on qualified 
education loans. The credit is phased out for married individuals filing joint returns with 
Maine adjusted gross income in excess of $130,000 and for other returns with Maine 
adjusted gross income in excess of $65,000. The amendment also provides that an 
individual may claim only the credit allowed under this amendment or the credit for 
educational opportunity but not both. 
This amendment provides funding for personnel and costs necessary to administer the 
credit. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/18/17 feac.. 
LD946 
LR 169(02) 
An Act To Provide an Income Tax Credit for Students Returning to College 
\ 
Fiscal Note for Bill as Amended by Committee Amendment "A_ 
Ct! -~ 0 
Net Cost (Savings) 
General Fund 
\.ppropriations/ Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Committee: Taxation 
7T 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
FY 2018-19 
Projections 
FY 2019-20 
Projections 
FY 2020-21 
$1.82,854,525 
$188,241,614 
$187,898,932 
$188,756,319 
$84,525 
$81,614 
$83,932 
$86,319 
($182,770,000) ($188,160,000) ($187,815,000) ($188,670,000) 
($3,730,000) 
($3,840,000) 
($9,885,000) 
($9,930,000) 
The bill provides a refundable income tax credit up to $5,000 for individuals and parents making payments on 
qualified education loans. It would result in a loss of General Fund revenue of $182,770,000 in fiscal year 2017-18 
and $188, 160,000 in fiscal year 2018-19 and a loss of Local Government Fund revenue of $3, 730,000 in fiscal year 
2017-18 and $3,840,000 in fiscal year 2018-19. The bill includes a General Fund appropriation of $84,525 in fiscal 
year 2017-18 and $81,614 in fiscal year 2018-19 to the Department of Administrative and Financial Services for one 
Tax Examiner position and related costs to establish and administer the credit. 
LRO 169(02) - Fiscal Note - Page 1 of 1