An Act To Expand the Earned Income Tax Credit in Maine
Maine Legislature, Session 129, LD 0104
Committee Amendment CA_B_S298 (Senate)

FffiST REGULAR SESSION 
COMMITTEE AMENDMENT "f> "to S.P. 31, L.D. 104, Bill, "An Act To Expand 
the Earned Income Tax Credit in Maine" 
Amend the bill in section 2 in §5219-S by striking out all of subsections 1, 2 and 3 
(page 1, lines 15 to 36 in L.D.) and inserting the following: 
'1. Resident taxpayer. A resident individual who is an eligible individual is allowed 
a credit against the tax otherwise due under this Part in the amount of~ 60% of the 
federal earned income credit for the same taxable year for an eligible individual who does 
not have an eligible child and, for all other eligible individuals, 15% for tax years 
beginning in 2020, 18% for tax years beginning in 2021, 20% for tax years beginning in 
2022 and 23% for tax years beginning in or after 2023 of the federal earned income credit 
for the same taxable year, except that for tax years beginning in 2009 and 2010, the 
applicable percentage is 4%. 
2. Nonresident taxpayer. A nonresident individual who is an eligible individual is 
allowed a credit against the tax otherwise due under this Part in the amount of~ 60% of 
the federal earned income credit for the same taxable year for an eligible individual who 
does not have an eligible child and, for all other eligible individuals, 15% for tax years 
beginning in 2020, 18% for tax years beginning in 2021, 20% for tax years beginning in 
2022 and 23% for tax years beginning in or after 2023 of the federal earned income credit 
for the same taxable year, except that for tax years beginning in 2009 and 2010, the 
applicable percentage is 4%, 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. 
3. Part-year resident taxpayer. An eligible 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 ~ 
60% of the federal earned income 
credit for the same taxable year for an eligible individual who does not have an eligible 
child and, for all other eligible individuals, 15% for tax years beginning in 2020, 18% for 
tax years beginning in 2021, 20% for tax years beginning in 2022 and 23% for tax years 
beginning on or after 2023 of the federal earned income credit for the same taxable year, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" b" to S.P. 31, L.D. 104($ -d Lt~ 
except that for tax years beginning in 2009 and 2010, the applicable percentage is 4%, 
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 defmed 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.' 
Amend the bill in section 2 in §5219-S in subsection 6 in the first line (page 2, line 6 
in L.D.) by striking out the following: "2019" and inserting the following: '2020' 
Amend the bill by adding after section 2 the following: 
'Sec. 3. Application. This Act applies to tax years beginning on or after January 1, 
2020. 
Sec. 4. 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 Senior Tax Examiner position and related costs to 
process and audit income tax returns. 
GENERAL FUND 
2019-20 
2020-21 
POSITIONS - LEGISLATIVE COUNT 
0.000 
1.000 
Personal Services 
$0 
$76,351 
All Other 
$0 
$32,858 
GENERAL FUND TOTAL 
$0 
$109,209 
SUMMARY 
This amendment, which is the minority report, expands the earned income tax credit 
by increasing the credit from 5% of the federal earned income tax credit to 60% for 
individuals with no qualifying children and 15% of the federal earned income tax credit 
for all other eligible individuals for tax years beginning in 2020 and increasing each year 
until it reaches 23% for tax years beginning in 2023 and after. 
This amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/02/19 :f'dac:.. 
LD 104 
LR 163(03) 
An Act To Expand the Earned Income Tax Credit in Maine 
Fiscal Note for Bill as Amended by Committee Amendment '13' l(::)-;;i'\2) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
:.ppropriations/ Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY2019-20 
FY 2020-21 
$0 
$25,445,709 
$0 
$109,209 
Projections 
FY 2021-22 
$30,631,095 
$107,595 
Projections 
FY 2022-23 
$34,291,679 
$110,679 
$0 
($25,336,500) 
($30,523,500) 
($34,181,000) 
$0 
($1,333,500) 
($1,606,500) 
($1,799,000) 
The bill expands the earned income tax credit and would result in a reduction in General Fund revenue of $25,336,500 
in fiscal year 2020-21 and a reduction in Local Government Fund revenue of $1,333,500 in fiscal year 2020-21. It 
includes a General Fund appropriation of $109 ,209 in fiscal year 2020-21 for one Senior Tax Examiner position and 
related costs to process and audit income tax returns. 
Additional costs to the Department of Labor to produce and furnish the required poster or notice can be absorbed 
within existing budgeted resources. 
LR0163(03) - Fiscal Note - Page 1 of 1