An Act Regarding the Educational Opportunity Tax Credit
Maine Legislature, Session 130, LD 0973
Committee: Taxation
Sponsors: WOOD
Amends: 36 MRSA §5217-D

Legislative Document
No. 973
H.P. 719
House of Representatives, March 9, 2021
An Act Regarding the Educational Opportunity Tax Credit
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative WOOD of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5217-D, sub-§2, ¶B, as amended by PL 2015, c. 482, §4, is 
further amended to read:
B.  A taxpayer may claim a credit based on loan payments actually made to a relevant 
lender or lenders under this section only with respect to loans that are part of the 
qualified individual's financial aid package and, for tax years beginning on or after 
January 1, 2015, only with respect to loan payment amounts paid by the taxpayer 
during that part of the taxable year that the qualified individual worked in this State.  
Payment of loan amounts in excess of the amounts due during the taxable year does 
not qualify for the credit.  For tax years beginning before January 1, 2015, refinanced 
loans that are part of the qualified individual's financial aid package are eligible for the 
credit under this section if the refinanced loans remain separate from other debt, 
including debt incurred in an educational program other than the degree program for 
which a credit is claimed under this section.  For tax years beginning on or after January 
1, 2015, refinanced loans or consolidated loans that are part of the qualified individual's 
financial aid package are eligible for the credit under this section if the refinanced loans 
or consolidated loans remain separate from other debt, except for debt incurred in an 
educational program, but only in proportion to the portion of the loan payments that 
are otherwise eligible under this section.  Forbearance or deferment of loan payments 
does not affect eligibility for the credit under this section.  For tax years beginning on 
or after January 1, 2015, an individual who worked in this State for any part of a month 
during the Maine residency period of the taxable year is considered to have worked in 
this State for the entire month.  For tax years beginning on or after January 1, 2015, an 
individual who worked outside this State for an entire month during the Maine 
residency period is considered to have worked in this State during that month, except 
that in no case may this exception exceed 3 months during the Maine residency period 
of the taxable year.  A qualified individual may claim the credit for all payments made 
by April 1, 2021 for obligations on a loan due in tax year 2020 and may claim the credit 
for all payments made by December 21, 2021 for obligations on a loan due in tax year 
2021.  For tax years beginning on or after January 1, 2022, a qualified individual may 
claim credit for a payment made prior to the due date for an obligation on a loan due 
that tax year regardless of when during that tax year the payment is made and a 
qualified individual in the first 2 years of participation in the Job Creation Through 
Educational Opportunity Program established under Title 20-A, chapter 428-C at any 
time before the end of the 2 years may make a catch-up payment up to the allowed 
payment amount for obligations of a loan due in those 2 years.
SUMMARY
This bill allows a qualified individual receiving a credit under the Job Creation Through 
Educational Opportunity Program until April 1, 2021 to make payments on obligations for 
loans due in tax year 2020 and until December 1, 2021 for payments due in tax year 2021.  
For tax years beginning January 1, 2022, the bill allows prepayment prior to the due date 
on obligations for loans due that tax year and for qualified individuals to be able to make 
catch-up payments in the first 2 years of their participation in the program.