An Act To Make a Technical Correction Concerning Maine's Earned Income Tax Credit
Maine Legislature, Session 130, LD 1764
Committee: Taxation
Sponsors: TERRY
Amends: 36 MRSA §5219-S

Legislative Document
No. 1764
H.P. 1315
House of Representatives, December 2, 2021
An Act To Make a Technical Correction Concerning Maine's 
Earned Income Tax Credit
(EMERGENCY)
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 203.
Received by the Clerk of the House on November 30, 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 TERRY of Gorham.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the State’s earned income tax credit law needs to be corrected before the 
90-day period expires to avoid a delay in the processing of income tax returns for 2021; 
and
Whereas, legislative action is immediately necessary to ensure correct administration 
of the State's earned income tax credit; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-S, sub-§2, as amended by PL 2021, c. 398, Pt. H, §4, is 
further amended to read:
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 25%, or for 
taxable years beginning after December 31, 2020 and before January 1, 2022, 20%, of the 
federal earned income credit for the same taxable year for a nonresident eligible individual 
who does not have a qualifying child and 12% of the federal earned income credit for the 
same taxable year for all other nonresident eligible individuals, except that, for taxable 
years beginning after December 31, 2020 and before January 1, 2022, all nonresident 
eligible individuals are allowed a credit in the amount of 20% of the federal earned income 
credit for the same taxable year, 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.
Sec. 2.  36 MRSA §5219-S, sub-§3, as amended by PL 2021, c. 398, Pt. H, §5, is 
further amended to read:
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 25%, or for taxable years beginning after 
December 31, 2020 and before January 1, 2022, 20%, of the federal earned income credit 
for the same taxable year for an eligible part-year individual who does not have a qualifying 
child and 12% of the federal earned income credit for the same taxable year for all other 
eligible part-year individuals, except that, for taxable years beginning after December 31, 
2020 and before January 1, 2022, all eligible part-year individuals are allowed a credit in 
the amount of 20% of the federal earned income credit for the same taxable year, 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 defined 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.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill corrects a drafting error in Public Law 2021, chapter 398 in the law governing 
the earned income tax credit.  As enacted, the law limits the credit of 20% of the federal 
earned income tax credit for tax year 2021 for nonresidents and part-year residents to those 
who do not have a qualifying child.  The intent of chapter 398 was to provide the 20% 
credit to all residents, nonresidents and part-year residents for tax year 2021, regardless of 
whether a resident, nonresident or part-year resident has a qualifying child; this bill 
accomplishes that intent.