An Act to Establish
Maine Legislature, Session 132, LD 1853
Committee Amendment CA_A_H733 (House)

FmST SPECIAL SESSION
COMMITTEE AMENDMENT "f\-" to H.P. 1237, L,D. 1853, "An Act to Establish
an Educational Tax Credit Program to Help Parents Pay for Nonpublic School Tuition and
Fees"
Amend the bill in section 2 in c. 220 in §5902 by striking out all of subsection 1(page
1, lines 20 and 21 in L.D.) and inserdng the followmg;
'1. Elieible student. "Elieible student" means a resident of the State who is eligible
to enrollma.nelsm^entarv or secondary public school and is not enrolled in a nonmibUc
school on October 1. 2025.'
Amend the bill m section 2 in c. 220 in §5906 in subsection 1 in paragraph C in the 4th
line (page 2, line 21 in L.D.) by striking out the following: "70%" and inserting the
following: '55%'
. Amend the bill in section 2 in c. 220 in §5906 in subsection 1 m paragraph C in t}ie; lagt
line (page 2, Hue 23 in L.D.) by stnking out the followmg: "70%" and inserting tlie
following: '55%'
Amend the bill in section 3 in §5217-0 in subsection 1 by striking out all of paragraph
C (page 3, lines 1 to 3 in L,D.) and inserting the following:
'C.J'Qualified taxpayer" means a taxpayer who:
m Is a resident of the State;
(T) Files a state mcome tax return:
.QUs not a dependent of another taxoaver; and
(4) Is the parent or guardian of a student who meets the requirements of Title 20-A.
section 5904,'
Amend the bill in section 3 in §5217-0 by striking out all of subsection. 2 (page 3, lines
6 to 12 m L.D.) and inserting the followmg:
'2. Credit allowed. For tax years beeimune on or after January 1. 2026. a qualified
taxpayer is allowed a credit against the tax imposed by this Part in accordance with the
COMMITTEE AMENDMENT
<=>
COMMnTEB AMENDMENT "/4" to H.P. 1237, L.D. 1853
COMMnTEB AMENDMENT " M'
provisions of this section for each eligible student that the qualified taxpaver is a parent or
guardjaELQf. The credit is created to unplement the Educational Tax Credit Program
established under Title 20-A, section 5901. The annual amount of thejsreditjs limited to
the amount provided in subsection 4.'
Amend the bill in section 3 in §5217-G in subsection 3 in the 3rd line (page 3, line 15
in L.D.) by striking out the followmg: "an eligible student" and inserting the following:
'each eligible student that the qualified taxpayer is a parent or euardian of
Amend the bill in section 3 m §5217-G by striking out all of subsection 4 (page 3, lines
17 to 20 m L.D.) and inserting the following:
4. Determination of amount of credit; refundable. The subsection governs the
credit under this section,
A. Each October 1st. the assessor shall determine fnr the immediately followine tax
year the maximum amount of the credit available_imderthis section. The assessor shall
make this determination by multiolymg by 55% the average per-oupil cost of education
for the fiscal vear in which the determination is being made; that amount is the
maximum, credit available. As used in this paragraph, "average per-pupil cost of
education" is the amount calculated and published by the Department of Education
pursuant to Title 20-A. section 5906. subsection 1 . paragraph C,
B. A taxpayer may take the credit determined pursuant to isaragraph A, except that the
credit may not exceed the amount of tuition and fees paid by the guaUfiedJaxpayer
during the taxable year.
C. The credit is a refundable credit on the individual income taxes_offhe_ qualified
taxpayer.'
Amend the bill by inserting after section 3 the following:
'See. 4. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides one-time funding for computer programming costs.
GENERAL FUND 2025-26 2026-27
All Other $0 $12,844
GENERAL FUND TOTAL $0 $12,844
5 ADMINISTRATIVE AND FINANCIAL
SERVICES, DEPARTMENT OF
DEPARTMENT TOTALS 2025-26 2026-27
3839 GENERAL FUND $0 $12,844
DEPARTMENT TOTAL-ALL FUNDS $0 $12,844
EDUCATION, DEPARTMENT OF
COMMITTEE AMENDMENT
COMMTTTEE AMENDMENT " H" to H.P. 1237, L.D. 1853
School Finance and Operations Z078
Initiative: Provides ongoing funds for one Public S ervice Coordinator I position and related
All Other costs to establish and administer fhe educational tax credit program.
GENERAL FUND 2025-26 2026-27
POSITIONS - LEGISLATWE COUNT 1,000 1.000
Personal Services $86,381 $120,645
AU Other $12,057 $8,860
GENERAL FUND TOTAL $98,438 $129,505
EDUCATION, DEPARTMENT OF
DEPARTMENT TOTALS 2025-26 2026-27
GENERAL FUND $98,438 $129,505
DEPARTMENT TOTAL - ALL FUNDS $98,438 $129,505
SECTION TOTALS 2025-26 2026-27
1920 GENERAL FUND $98,438 $142,349
SECTION TOTAL-ALL FUNDS $98,438 $142,349
Amend the bill by relettermg or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment specifies that to qualify for the education tax credit under the bill, the
taxpayer must be a resident of Maine and the eligible student must be a resident of Maine
who is not enrolled in a nonpublic school on October 1, 2025. The amendment decreases
the maximum credit from 70% to 55% of the cost of publicly funded education, requires
the State Tax Assessor to annually determine the maximum credit that is available for each
eligible student and specifies that the credit may not exceed the cost of tuition and fees paid
by the taxpayer.
The amendment also adds an appropriations and allocations section,
FISCAL NOTE REQIHRED
(See attached)
COMMITTEE AMENDMENT
Approved; 06/12/25
SJUL.
LD 1853 LR 1032(02)
An Act to Establish an Educational Tax Credit Program to Help Parents Pay for Nonpublic School
Tuition and Fees
Fiscal Note for Bill as Amended by Committee Amendment
Committee: Taxation
Fiscal Note Required: Yes
^(W)
Fiscal Note
Net Cost (Savings)
General Fund
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
,438 $7,210,349 $16,227,210 $25,029,09r
Appropriations/Allocatious
General Fund
$98,438 $142,349 $134,210 $139,099
Revenue
General Fund
Other Special Revenue Funds
$0 ($7,068,000) ($16,093,000) ($24,890,000)
$0 ($372,000) ($847,000) ($1,310,000)
Fiscal Detail and Notes
This bill would result in a revenue decrease to the General Fund of $7,068,000 in fiscal year 2026-27 by establishing
an educational tax credit to help parents pay for school tuition. Qualified taxpayers must be residents along with their
eligible students and the tax credit may not exceed the cost of tuition and fees paid by qualified taxpayers. The bill
would also result in a revenue decrease to the Local Government Fund of $372,000 in fiscal year 2026-27,
The bill includes a one-time General Fund appropriation to the Bureau of Revenue Services within the Department of
Administrative and Financial Services of $12,844 in fiscal year 2026-27 to fond computer programming costs
associated with the provisions of this bill. The bill also includes ongoing General Fund appropriations of $98,438 in
fiscal year 2025-26 and $129,505 in fiscal year 2026-27 to the Department of Education for one Public Service
Coordinator I position and related All Other costs to establish and administer the educational tax credit program.
LR1032(02) - Fiscal Note - Page 1 of 1