An Act To Replace the Educational Opportunity Tax Credit with the Student Loan Repayment Credit for Maine Residents
Maine Legislature, Session 128, LD 1537
Committee Amendment CA_A-HA_B_H785 (House)
Amends: 20-A MRSA §12541

HOUSE AMENDMENT "6" to COMMITTEE AMENDMENT "A" to H.P. 1057, 
L.D. 1537, Bill, "An Act To Replace the Educational Opportunity Tax Credit with the 
Student Loan Repayment Credit for Maine Residents" 
Amend the amendment by striking out all of the first and 2nd paragraphs after the 
title (page 1, lines 12 to 15 in amendment) and inserting the following: 
'Amend the bill by striking out all of sections 2 and 3 (page 1, lines 8 to 19 in L.D.) 
and inserting the following: 
1Sec. 2. 20-A MRSA §12541, sub-§8, as enacted by PL 2013, c. 525, §5, is 
amended to read: 
8. Qualified employee. 
11Qualified employee" has the same meaning as in Title 36, 
section 5217-D, subsection 1, paragraph E, except that for tax years beginning on or after 
January 1, 2019 1 "qualified employee" has the same meaning as in Title 36, section 
5217-E, subsection 1, paragraph G. 
Sec. 3. 20~A MRSA §12541, sub-§9, as enacted by PL 2013, c. 525, §6, is 
amended to read: 
9. Qualified individual. "Qualified individual" has the same meaning as in Title 36, 
section 5217-D, subsection 1, paragraph G, except that for tax years beginning on or after 
Janum 1, 2019, 
11qualified individual
has the same meaning as in Title 36, section 
5217 :-E, subsection L_p_aragraph H.
1 
An1end the amendment on page 3 by inserting after the 3rd indented paragraph the 
following: 
'Amend the bill in section 5 in §5217-E in subsection 1 in paragraph Din the 7th line 
(page 2, line 9 in L.D.) by inserting after the following: "portion of the
the following: 
1education
' 
Amend the amendment on page 3 by inserting after division (c) the following: 
'Amend the bill in section 5 in §5217-E in subsection 2 by striking out all of 
paragraphs A and B (page 3, lines 19 to 28 in L.D.) and inserting the following: 
1A. 
A taxpayer may claim a credit based on loan payments actually made to a 
r,r,levant lender or lenders under this section only with respect to eligible education 
HOUSE AMENDMENT 
-<=, 
~----:\ Ci 
\111 (,\'.' .,_y 
HOUSE AMENDMENT :/5" to COMMITTEE AMENDMENT "A" to H.P. 1057, L.D. 1537 
loan payment amounts paid by the taxpayer during that part of the taxable year that 
the qualified individual worked in this State. 
Forbearance or defe1ment of loan 
payments does not affect eligibility for the credit under this section, An individual 
who worked in this State for any part of a month of the taxable year is considereq to 
have worked in this State for the entire month .. 
B. The credit under this section may not reduce the tax othe1wise due lmder this Part 
to less than zero except that, until the tax year beginning after December 3 L 2020, 
the credit under this section is refundable to the extent the credit is based on eligible 
education loans for which a refundable credit was obtained under section 5217-D, 
subsection 3. For tax years beginning on or after Janua:ry 1, 2021, the credit under 
this section may not reduce the tax otherwise due under this Part to less than zero. 
C. A taxpayer entitled to a credit for any taxable year may can:y over and apply to 
tax liability for any one or more of the next succeeding 5 years the portion, as 
reduced from year to year, of any unused credits.' 1 
Amend the amendment on page 3 in the 5th indented paragtaph in the last line (page 
3, line 23 in amendment) by striking out the following: ''paragraph B (page 3, lines 34 to 
in L.D.)" and inserting the following: 'paragraphs A and B (page 3, lines 31 to 36 in 
L.D.)' 
Amend the amendment on page 3 by inserting after the 5th indented paragraph the 
following: 
'A. The amount paid on eligible education loans during the taxable year; and1 
SUMMARY 
This amendment provides that the annual credit may include loan amounts paid in 
excess of the amount due during a taxable year. 
The amendment also provides that 
credits in excess of those that may be used during a taxable year may be carried over for 
the next succeeding 5 years. This amendment also allows for the refundability of the new 
credit for those loans for which a refundable credit was available under the current credit 
for educational opportunity, such as loans to obtain an associate1s or bachelor1s degree in 
science, technology, engineering or mathematics. The refundability for all loans ends 
beginning with the tax year beginning January 1, 2021. 
This amendment also makes technical con-ections. 
SPONSOREDBY: ~~-
(Representative POULIOT) 
TOWN: Augusta 
FISCAL NOTE REQUIRED 
(See attacht:d) 
HOUSE AMEJVDMENT 
Approved: 04/17/18 feac 
~ 
LD 1537 
LR 726(09) 
An Act To Replace the Educational Opportunity Tax Credit with the Student Loan Repayment Credit 
for Maine Residents 
Fiscal Note for House Amenclmen~' to Committee Amendment "A" 
Sponsor: Rep. Pouliot of Augusta 
Net Cost (Savings) 
General Fund 
1{evenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
I~iscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
$0 
$0 
$0 
FY 2018-19 
$0 
$0 
$0 
Projections 
FY 2019-20 
$8,075,000 
($8,075,000) 
($425,000) 
Projections 
FY 2020~21 
$10,355,000 
($10,355,000) 
($545,000) 
The amendment provides for refundability of credits under the new Student Loan Repayment Credit for Maine 
Residents for those loans for which a credit was issued under the current credit for educational opportunity. It also 
provides that any unused credit in any taxable year can be catTied forward and used in the succeeding 5 tax years. It 
would reduce General Fund revenue by $8,075,000 and reduce Local Government Fund revenue by $425,000 in fiscal 
year 2019-20. 
T ,R07?fi(O(}'\ " FiQ£'>1l NotP. - P>1aP 1 of 1