allocations

Section 17 amends the income tax credit for child care expenses so that the credit for all
child care expenses (whether or not quality child care expenses) is 50% of the federal child care
credit for the taxable year. Under current law, the Maine credit is 25% of the federal child care
credit unless the related child care expenses are considered quality child care expenses, in which
case the Maine credit is 50% of the federal child care credit. As in current law, the credit is
refundable up to $500. The change applies to tax years beginning after December 31, 2017.
Sections 18 and 19 make the following changes to the property tax fairness credit for tax
years beginning on or after January 1, 2018:
1.Removes the add-back of trade, capital and businesses losses to income.
2.Changes the benefit base (the maximum property tax paid or rent constituting
maximum property tax paid that may be claimed for the credit) to $2,000 for
taxpayers claiming one personal exemption and $2,700 for taxpayers claiming more
than one personal exemption. The amounts are subject to an annual inflation
adjustment. Currently, the benefit base is limited to $2,000 for taxpayers filing
single, $2,600 for taxpayers filing married joint or heads of households claiming no
more than 2 personal exemptions, and $3,200 for taxpayers filing married joint or
heads of households claiming 3 or more personal exemptions.
3.Increases the credit amount from 50% of the benefit base that exceeds 6% of
income to 100% of the benefit base that exceeds 5% of income.
4.Increases the maximum credit to $750 for individuals younger than 65 and $1,000
for individuals 65 or older. The maximum credit is currently $600 and $900,
respectively. Additionally, otherwise qualified individual who are 65 or older and
whose income does not exceed $20,000 will qualify for a minimum refund equal to
the benefit base up to $400.
5.Restricts married individuals filing separate returns from claiming the property tax
fairness credit.
6.Limits the credit to individuals who were Maine residents for the entire tax year.
7.Eliminates the rent reduction for taxpayers whose rent includes heat, utilities,
snowplowing and other similar items.
PART E
Sec. E-1. 5 MRSA §13090-K, sub-§2, as amended by PL 2015, c. 267, Pt. OOOO, § 1
and affected by § 7, is repealed the following is enacted in its place:
2. Source of fund. Beginning October 1, 2013 and every October 1st thereafter until, and
including, October 1, 2017, the State Controller shall transfer to the Tourism Marketing
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