An Act To Support Child Care Providers and School Readiness through Tax Credits
Maine Legislature, Session 130, LD 1678
Committee Amendment CA_A_H854 (House)
Amends: 36 MRSA §5218

COMMITTEE AMENDMENT "ff" to H.P. 1249, L.D. 1678, "An Act To Support 
Child Care Providers and School Readiness through Tax Credits" 
Amend the bill in section 2 in subsection 3 in the 2nd line (page 1, line 17 in L.D.) by 
striking out the following: "2022" and inserting the following: '2023' 
Amend the bill by striking out all of section 3 and inserting the following: 
'Sec. 3. 36 MRSA §5218, sub-§5 is enacted to read: 
5. 
Evahiation; specific public policy objectives; performance measures. 
Beginning in 2026. the credit provided under subsection 3 is subject to ongoing legislative 
review in accordance with Title 3, chapter 37. In developing evaluation parameters to 
pe1form the review, the Office of Program Evaluation and Government Accountability 
shall consider whether the specific public policy objectives and economic benefit of the 
credit provided under subsection 3 outweigh the loss ofrevenue to the State.' 
Amend the bill in section 4 in §5218-B in subsection 2 in the 2nd line (page 3, line 10 
in L.D.) by striking out the following: "2022" and inserting the following: '2023' 
Amend the bill in section 4 in §5218-B in subsection 3 in the 2nd line (page 3, line 26 
in L.D.) by striking out the following: "2022" and inserting the following: '2023' 
Amend the bill in section 4 in §5218-B by striking out all of subsection 6 (page 4, lines 
to 35 in L.D.) and inserting the following: 
'6. 
Evaluation; specific public policy objectives; performance measures. 
Beginning in 2026, the credit provided under this section is subject to ongoing legislative 
review in accordance with Title 3, chapter 37. In developing evaluation parameters to 
perform the review, the Office of Program Evaluation and Government Accountability 
shall consider whether the specific public policy objectives and economic benefit of the 
credit provided under this section outweigh the loss of revenue to the State.' 
Amend the bill in section 5 in §5218-C in subsection 1 by striking out all of paragraph 
B (page 4, lines 41 to 43 and page 5, lines 1 to 6 in L.D.) and inserting the following: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT•/['» to H.P. 1249, L.D. 1678 
'B. "Providing child care services" means expending funds to build, furnish, license, 
staff, operate or subsidize a child care center licensed by the Department of Health and 
Human Services to provide early care and education services to children of employees 
of the taxpayer at no profit to the taxpayer or to contract with a child care facility 
licensed by or registered with the department to provide early care and education 
services to children of the employees of the taxpayer. "Providing child care services" 
includes payments made by an employer to an employee for pmposes of paying for 
early care and education services for children of the employee under a dependent care 
assistance program and the provision of child care resource and referral services to 
employees.' 
Amend the bill in section 5 in §5218-C by striking out all of subsection 2 (page 5, lines 
to 23 in L.D.) and inse1iing the following: 
'2. Credit allowed for quality child care site expenses. For tax years beginning on 
or after January 1, 2023, a taxpayer constituting an employing unit is allowed a credit 
against the tax imposed by this Part for each taxable year in an amount equal to the lowest 
of: 
A. A percentage of the costs incurred by the taxpayer in providing child care services 
at child care sites as follows: 
(1) If the quality rating of the child care site is step 1, 5% of the costs of providing 
child care services: 
(2) If the quality rating of the child care site is step 2, 10% of the costs of providing 
child care services; 
(3) If the quality rating of the child care site is step 3, 15% of the costs of providing 
child care services: or 
(4) If the quality rating of the child care site is step 4, 20% of the costs of providing 
child care services: 
B. One thousand dollars for each child of an employee of the taxpayer for which the 
taxpayer is incurring costs for child care services: and 
C. Ten thousand dollars.' 
Amend the bill in section 5 in § 5218-C by striking out all of subsection 3 (page 5, lines 
to 36 in L.D.) and inserting the following: 
'3. 
Evaluation; specific public policy objectives; performance measures. 
Beginning in 2026, the credit provided under this section is subject to ongoing legislative 
review in accordance with Title 3, chapter 37. In developing evaluation parameters to 
perform the review, the Office of Program Evaluation and Government Accountability 
shall consider whether the specific public policy objectives and economic benefit of the 
credit provided under this section outweigh the loss of revenue to the State.' 
Amend the bill in section 5 in §5218-C by inserting after subsection 3 the following: 
'4. Carry-over. The amount of the credit that may be used by a taxpayer for a taxable 
year may not exceed the amount of tax otherwise due under this Part. Any unused credit 
may be carried over to the following year or years not to exceed 15 years.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"~ H.P. 1249, L.D. 1678 
Amend the bill in section 8 in subsection 9 in the 2nd line (page 6, line 12 in L.D.) by 
striking out the following: "2023" and inserting the following: '2024' 
Amend the bill in section 8 in subsection 9 in the last line (page 6, line 18 in L.D.) by 
striking out the following: 112022 11 and inserting the following: '2023' 
Amend the bill by inserting after section 8 the following: 
'Sec. 9. Appropriations and allocations. The following appropriations and 
allocations are made. 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF 
Child Care Services 0563 
Initiative: Provides funding to update an existing contract to expand the credential 
repository to include quality standards for infants, toddlers and school-age children. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Child Care Services 0563 
2021-22 
$0 
$0 
2022-23 
$70,000 
$70,000 
Initiative: Provides funding for 3 Management Analyst II positions and one Social Services 
Manager I position to capture data, verify provider eligibility in the child care subsidy 
program within the Office of Child and Family Services, determine provider eligibility 
based on foster care status and provide technical assistance for providers. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
2021-22 
0.000 
$0 
$0 
$0 
2021-22 
$0 
$0 
2022-23 
4,000 
$242,595 
$13,074 
$255,669 
2022-23 
$325,669 
$325,669 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment moves dates forward by one year to reflect the carry-over of the bill 
to the Second Regular Session of the 130th Legislature, The amendment also changes the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "ll' to H.P. 1249, L.D. 1678 
calculation of the income tax credit for an employer that pays for the costs of quality child 
care sites by providing that the credit is the lowest of a percentage based on the site's quality 
rating; $1,000 for each child of an employee for which costs are incurred by the employer; 
and $10,000. 
The amendment provides that the credit for quality child care site expenses may be 
carried over up to 15 years and deletes language requiring an annual evaluation by the 
Office of Program Evaluation and Government Accountability. The amendment also adds 
an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
( 
Approved: 03/08/22 feae 
LD 1678 
LR 718(02) 
An Act To Support Child Care Providers and School Readiness through Tax Credits 
Fiscal Note for Bill as Amended by Committee ~mendment ft' {/f ✓'36~) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2021-22 
$0 
$0 
$0 
$0 
FY 2022-23 
$325,669 
$325,669 
$0 
$0 
Projections 
FY 2023-24 
$28,003,198 
$690,698 
($27,312,500) 
($1,437,500) 
Projections 
FY 2024-25 
$28,251,106 
$607,056 
($27,644,050) 
($1,454,950) 
The bill includes General Fund appropriations to the Department of Health and Human Services of $325,669 in fiscal 
year 2022-23 for 3 Management Analyst II positions and one Social Services Manager I position to capture data, 
verify provider eligibility in the Child Care Subsidy Program, detennine provider eligibility based on foster care 
status, provide technical assistance for providers and to update an existing contract to expand the credential repository 
to include quality standards for infants, toddlers and school age kids. 
The bill provides tax credits to child care providers, educators, administrators and other professional suppo1t staff and 
amends the current income tax credit for child care expenses and will result in a reduction in General Fund revenue of 
$27,312,500 in fiscal year 2023-24 and $27,644,050 in fiscal year 2024-25. It will also result in a reduction in Local 
Government Fund revenue of $1,437,500 in fiscal year 2023-24 and $1,454,950 in fiscal year 2024-25. 
The Department of Administrative and Financial Services will require a General Fund appropriation of $200,000 in 
fiscal year 2023-24 and $102,720 in fiscal year 2024-25 for one Tax Examiner II position, computer programming and 
related administrative costs to revise income tax filings and schedules, provide taxpayer assistance and audit affected 
returns. Any additional costs to the Office of Program Evaluation and Government Accountability are expected to be 
minor and can be absorbed within existing budgeted resources, 
LR0718(02) - Fiscal Note - Page 1 of 1