An Act to Establish a Behavioral Health Employment Income Tax Credit for Student Loan Payments
Maine Legislature, Session 131, LD 1355
Committee: Taxation
Sponsors: RISEMAN, BRENNER, ABDI, COPELAND, CROCKETT, DHALAC, DODGE, GRAMLICH, MADIGAN, WARREN
Amends: 36 MRSA §5217-E

Legislative Document
No. 1355
H.P. 869
House of Representatives, March 28, 2023
An Act to Establish a Behavioral Health Employment Income Tax 
Credit for Student Loan Payments
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative RISEMAN of Harrison.
Cosponsored by Senator BRENNER of Cumberland and
Representatives: ABDI of Lewiston, COPELAND of Saco, CROCKETT of Portland, 
DHALAC of South Portland, DODGE of Belfast, GRAMLICH of Old Orchard Beach, 
MADIGAN of Waterville, WARREN of Scarborough.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5217-E, sub-§2, as enacted by PL 2021, c. 635, Pt. H, §15, is 
amended to read:
2.  Credit allowed.  For taxable years beginning on or after January 1, 2022, a qualified 
individual is allowed a refundable credit against the tax imposed by this Part in accordance 
with the provisions of this section. The credit, with respect to a qualified individual other 
than a behavioral health clinician, is equal to the amount of loan payments made directly 
by the taxpayer to the lender during the taxable year plus the amount of any carryover carry-
over allowed in accordance with paragraph C, up to a maximum of $2,500. The credit, with 
respect to a qualified individual who is a behavioral health clinician, is equal to the amount 
of loan payments made directly by the taxpayer to the lender during the taxable year plus 
the amount of any carry-over allowed in accordance with paragraph C, up to a maximum 
of $5,000. The credit is created to implement the Job Creation Through Educational 
Opportunity Program established under Title 20‑A, chapter 428‑C.
A.  A qualified individual may claim a credit under this section based on loan payments 
made directly by the taxpayer to a relevant lender or lenders only with respect to loans 
that are part of the qualified individual's financial aid package and only with respect to 
loan payment amounts paid directly by the taxpayer during that part of the taxable year 
that the qualified individual was a resident individual.  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, but only in proportion to the portion of the loan 
payments that are otherwise eligible under this section.
B.  Loans obtained from a person related to the qualified individual or from any person 
by reason of a loan under any qualified employer plan or under a contract referred to 
in the Code, Section 72(p)(5) do not qualify for the credit under this section.  For 
purposes of this paragraph, a person is considered related to the qualified individual if 
that person meets the criteria listed in the Code, Section 267(b) or Section 707(b)(1).  
As used in this paragraph, "qualified employer plan" has the same meaning as in the 
Code, Section 72(p)(4).
C.  For taxable years beginning on or after January 1, 2022 and before January 1, 2027, 
a qualified individual with unused carryover carry-over credits pursuant to section 
5217‑D, subsection 2, paragraph A from the credit for educational opportunity 
generated in the 10 years from January 1, 2012 to December 31, 2021 may carry over 
and apply to the credit amount allowed pursuant to this section the portion, as reduced 
from year to year, of any unused credits.
D.  A qualified individual may only receive a credit otherwise allowed pursuant to this 
section up to a total lifetime credit cap amount of $25,000, except that for a qualified 
individual who is a behavioral health clinician, the total lifetime credit cap amount is 
$50,000.
E.  With respect to a qualified individual who received a credit pursuant to section 
5217‑D that reduced the qualified individual's tax liability or resulted in a refundable 
credit, to the extent the credit is based on loans included in the financial aid package 
acquired to obtain a bachelor's degree or associate degree in science, technology, 
engineering or mathematics in any taxable year beginning on or after January 1, 2019 
and before January 1, 2022, the maximum credit allowed under this section is $3,500 
for the qualified individual's taxable year beginning in either 2022 or 2023, whichever 
taxable year is elected by the qualified individual.  Any credit amount allowed in excess 
of $2,500 as a result of this paragraph is not applied against the lifetime credit cap 
under paragraph D.
F.  With respect to a qualified individual who is a behavioral health clinician, that  
individual must be licensed to practice in a clinical capacity in an agency licensed by 
the State to provide mental health or substance use disorder treatment services and be 
engaged in that employment for at least 5 years.
Sec. 2.  Application. This Act applies to tax years beginning on or after January 1, 
2023.
SUMMARY
This bill amends the student loan repayment tax credit for behavioral health clinicians 
to double the maximum tax credit from $2,500 per year to $5,000 per year and to double 
the lifetime cap to $50,000.  To be eligible for the enhanced credit, the bill requires a 
behavioral health clinician to be licensed to practice in an agency licensed by the State to 
provide mental health or substance use disorder treatment services and be engaged in that 
employment for at least 5 years.