An Act To Incentivize the Development of the Labor Force in the Green Jobs Sector through Assistance in Repaying Student Loan Debt
Maine Legislature, Session 130, LD 1410
Committee: Taxation
Sponsors: BRENNER, PLUECKER, BENNETT, CHIPMAN, JACKSON, MAXMIN, FAULKINGHAM, TERRY
Amends: 36 MRSA §5217-E

Legislative Document
No. 1410
S.P. 460
In Senate, April 12, 2021
An Act To Incentivize the Development of the Labor Force in the 
Green Jobs Sector through Assistance in Repaying Student Loan 
Debt
Received by the Secretary of the Senate on April 8, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BRENNER of Cumberland.
Cosponsored by Representative PLUECKER of Warren and
Senators: BENNETT of Oxford, CHIPMAN of Cumberland, President JACKSON of 
Aroostook, MAXMIN of Lincoln, Representatives: FAULKINGHAM of Winter Harbor, 
McDONALD of Stonington, TERRY of Gorham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5217-E is enacted to read:
§5217-E.  Green jobs employment credit
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Accredited institution" means a community college, college or university that is 
accredited by a regional accrediting association or by one of the specialized accrediting 
agencies recognized by the United States Secretary of Education.
B.  "Benchmark loan payment" means the monthly loan payment, as calculated by the 
State Tax Assessor, for the amount of the principal cap paid over 10 years at the interest 
rate for federally subsidized Stafford loans under 20 United States Code, Section 1077a 
applicable during the qualified individual's last year of enrollment at an accredited 
institution.
C.  "Financial aid package" means financial aid obtained by a student for attendance at 
an accredited institution, including refinanced or consolidated loans if those refinanced 
or consolidated loans remain separate from other debt.
D.  "Green job" means a job:
(1)  Within a business or industry sector that provides goods or services that benefit 
the environment or conserve natural resources, including farming, fishing, 
renewable resource development and logging in accordance with a forest 
management plan or outcome-based forest policy, as defined in Title 12, section 
8868, subsections 2 and 2-B, respectively.  As used in this subparagraph, 
"renewable resource" has the same meaning as in Title 35-A, section 3210, 
subsection 2, paragraph C; or
(2)  In which the employee is primarily responsible for making the employer's 
activities or processes more environmentally sustainable or reducing the 
employer's reliance on nonrenewable resources.
E.  "Principal cap" means the limit on the loan principal for purposes of claiming the 
credit under this section.  The principal cap is equal to the average in-state tuition and 
mandatory fees applicable to an associate, bachelor's or graduate degree program 
within the University of Maine System for the academic year ending during the 
calendar year prior to the individual's graduation, multiplied by the number of years of 
full-time attendance necessary to obtain the relevant degree.
F.  "Qualified employment" means full-time employment or part-time employment, as 
defined in section 5217-D, subsection 1, paragraphs C and D, respectively, in a green 
job or in a STEM career. 
G.  "Qualified individual" means an individual, including the spouse filing a joint return 
with the individual under section 5221, who is eligible for the credit under this section.  
An individual is eligible for the credit if the individual:
(1)  During the taxable year, was a resident of or domiciled in this State or was 
deployed for military service, as defined in section 5217-D, subsection 1, 
paragraph G, subparagraph (5); and
(2)  During the taxable year, worked in qualified employment in the State.
H.  "STEM career" means employment in the field of science, technology, engineering 
or mathematics.
2.  Credit allowed.  For taxable years beginning on or after January 1, 2021 a qualified 
individual is allowed a credit against the tax imposed by this Part in accordance with the 
provisions of this section.
A.  A taxpayer may claim a credit based on loan payments actually made to a lender or 
lenders under this section only with respect to loans that are part of the taxpayer's 
financial aid package and only with respect to the amount of loan payments paid by the 
taxpayer during that part of the taxable year that the taxpayer worked in this State.    
B.  For the purposes of this section, a taxpayer who worked in this State for any part of 
a month during the taxable year is considered to have worked in this State for the entire 
month.  For the purposes of this section, a taxpayer who worked outside this State for 
an entire month during the taxable year is considered to have worked in this State 
during that month, except that in no case may this exception exceed 3 months during 
the taxable year.
C.  A payment in excess of the loan payment amount due during the taxable year does 
not qualify for the credit under this section.
D.  Forbearance or deferment of loan payments does not affect eligibility for the credit 
under this section.  
E.  The credit under this section is refundable to the extent the credit is based on loans 
included in the financial aid package acquired to obtain or attempt to obtain an 
associate, bachelor's or graduate degree from an accredited institution.
F.  A taxpayer entitled to the credit under this section for any taxable year may carry 
over and apply to the tax liability for any one or more of the next succeeding 10 years 
the portion, as reduced from year to year, of any unused credits.
3.  Calculation of the credit; qualified individuals.  Subject to subsection 2, the credit 
to which a qualified individual is entitled is equal to the lesser of the following amounts:
A.  The benchmark loan payment multiplied by the number of months during the 
taxable year in which the qualified individual made loan payments; and
B.  The monthly loan payment amount multiplied by the number of months during the 
taxable year in which the qualified individual made loan payments.
SUMMARY
This bill creates a Maine income tax credit for Maine residents who work in certain 
green jobs or in the fields of science, technology, engineering or mathematics in this State 
and who make student loan payments related to their attendance at an accredited 
community college, college or university.  The income tax credit is refundable to the extent 
that the taxpayer's loans were acquired to obtain or attempt to obtain an associate, bachelor's 
or graduate degree from an accredited community college, college or university.  The 
income tax credit is equal to the lesser of a benchmark loan payment amount calculated by 
the State Tax Assessor and the taxpayer's monthly loan payment amount, multiplied by the 
number of months that the taxpayer made loan payments within the taxable year.