An Act To Provide a Tax Credit for Family Caregivers
Maine Legislature, Session 130, LD 0296
Committee: Taxation
Sponsors: CLOUTIER, BENNETT, ARATA, CONNOR, COREY, HEPLER, OSHER, SACHS, TERRY, CARNEY
Amends: 22 MRSA §7308, 36 MRSA §5218-B

Legislative Document
No. 296
H.P. 209
House of Representatives, February 3, 2021
An Act To Provide a Tax Credit for Family Caregivers
Received by the Clerk of the House on February 1, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative CLOUTIER of Lewiston.
Cosponsored by Senator BENNETT of Oxford and
Representatives: ARATA of New Gloucester, CONNOR of Lewiston, COREY of Windham, 
HEPLER of Woolwich, OSHER of Orono, SACHS of Freeport, TERRY of Gorham, Senator: 
CARNEY of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  22 MRSA §7308, as amended by PL 2001, c. 487, §1, is repealed and the 
following enacted in its place:
§7308.  Respite Care Fund
1.  Respite Care Fund; purpose.  The Respite Care Fund, referred to in this section 
as "the fund," is established in the department and administered by the department for the 
purpose of providing short-term respite care for persons with Alzheimer's disease and other 
dementias.  This respite care may include short-term in-home care, nursing or residential 
care facility stays, hospital or adult day care or home modifications.  The department also 
may use the fund to carry out the purposes of the National Family Caregiver Support 
Program authorized under 42 United States Code, Chapter 35, Subchapter III, Part E.
2.  Family caregiver program; income tax credit; certification.  Beginning January 
1, 2022, in addition to the purposes specified in subsection 1, the fund also may be used to 
cover the costs of a family caregiver program including services to family caregivers and 
the income tax credit provided in Title 36, section 5218-B for family caregivers providing 
care to consumers determined eligible under this section in accordance with rules adopted 
by the department. An eligible family caregiver may choose annually to receive either 
services provided under the program or the family caregiver credit. If an eligible family 
caregiver chooses to receive the family caregiver credit, the department, or its designee, 
shall certify to the Department of Administrative and Financial Services, Maine Revenue 
Services by January 15th each year beginning in 2022 that the family caregiver is eligible 
for this credit.
3.  Annual expenditures capped.  Beginning on January 1, 2022, aggregate 
expenditures under the fund, including transfers to the General Fund under Title 36, section 
5218-B, subsection 4, may not exceed $5,000,000 in any calendar year. This cap does not 
include an amount of state revenue equal to the amount available to this fund in state fiscal 
year 2019-20 and any federal revenue available to the fund. An administrative fee of up to 
10% of this cap may be used for purposes established under this section.
4.  Stakeholder group; evaluation; reports.  The department shall convene a 
stakeholder group no later than October 1, 2021 to assist in carrying out the purpose of this 
section, evaluating the effect of the family caregiver program and contributing to the 
content of the annual report under this subsection.  The stakeholder group must include 
representatives of area agencies on aging, consumers, family caregivers, providers of in-
home and community support services, nursing facilities, residential care services and 
advocacy organizations for the elderly.  The department shall submit an annual report no 
later than January 1st of each year beginning in 2022 to the joint standing committees of 
the Legislature having jurisdiction over health and human services matters and taxation 
matters.  The annual report must include the following:
A.  An unduplicated count of individuals receiving respite care, assistive technology, 
home modification and tax credits;
B.  The amount of funds that were allocated for respite care, assistive technology, home 
modification and tax credits;
C.  The number of consumers and family caregivers on a waiting list for services under 
this section and demographics of those individuals, including, but not limited to, age, 
ethnicity, gender identity, income and county of residence;
D.  Demographics of family caregivers and consumers served, including, but not 
limited to, age, ethnicity, gender identity, income and county of residence;
E.  The time between application and eligibility determination by the department or its 
designee pursuant to subsection 2;
F.  The time between application for and receipt of respite care;
G.  An assessment of the extent to which the services provided under this section keep 
consumers in their homes and delay a transfer to a higher level of institutional care; 
and
H.  Any recommendations for changes related to the adequacy of the fund or the scope 
or type of services that it provides.
5.  Rulemaking.  The department shall adopt rules to implement this section.  Rules 
adopted pursuant to this subsection are routine technical rules as defined by Title 5, chapter 
375, subchapter 2-A.
Sec. 2.  36 MRSA §5218-B is enacted to read:
§5218-B.  Family caregiver credit
1.  Credit allowed.  For tax years beginning on or after January 1, 2022, a family 
caregiver certified by the Department of Health and Human Services or its designee under 
Title 22, section 7308, subsection 2 is allowed a refundable credit of $2,000 against the 
taxes otherwise due under this Part.
2.  Credit for part-year resident taxpayer.  For tax years beginning on or after 
January 1, 2022, a family caregiver certified by the Department of Health and Human 
Services or its designee under Title 22, section 7308, subsection 2 who is a part-year 
resident taxpayer is allowed a refundable credit of $2,000, multiplied by a ratio, the 
numerator of which is the individual's income as modified by section 5122 for that portion 
of the taxable year during which the individual was a resident plus the individual's income 
from sources within this State, as determined under section 5142, for that portion of the 
taxable year during which the individual was a nonresident and the denominator of which 
is the individual's entire income, as modified by section 5122.
3.  Credit for nonresident taxpayer.  For tax years beginning on or after January 1, 
2022, a family caregiver certified by the Department of Health and Human Services or its 
designee under Title 22, section 7308, subsection 2 who is a nonresident taxpayer is 
allowed a refundable credit of $2,000, multiplied by the ratio of the individual's Maine 
adjusted gross income to the individual's federal adjusted gross income as modified by 
section 5122.
4.  Transfer of funds from the Respite Care Fund.  By August 1, 2022 and annually 
thereafter, the assessor shall notify the State Controller of revenue loss attributable to 
credits claimed under this section during the previous state fiscal year.  The State Controller 
shall transfer that amount from the Respite Care Fund established in Title 22, section 7308, 
subsection 1 to the General Fund.
SUMMARY
This bill expands the role of the Department of Health and Human Services with 
respect to the Respite Care Fund to include services for family caregivers.  It provides a 
refundable income tax credit of $2,000 for certified family caregivers and permits eligible 
family caregivers to choose to receive services or a tax credit.  It requires the department, 
by routine technical rulemaking, to prescribe the details of eligibility for family caregiver 
services and the tax credit within the context of the Respite Care Fund and the National 
Family Caregiver Support Program.  The bill requires the department to establish a 
stakeholder group to assist in carrying out the purposes of the family caregiver program, 
evaluating the effect of the program and assisting with the compilation of an annual report.  
The bill requires that revenue losses to the General Fund attributable to the family caregiver 
income tax credit be reimbursed from the Respite Care Fund and provides that aggregate 
expenditures under the Respite Care Fund may not exceed $5,000,000 annually excluding 
existing funds and federal revenue.