Sec. 1. 36 MRSA §5218, as amended by PL 1987, c. 772, §40, is further amended to read:

§5218. Income tax credit for child care expenses

A resident individual shall be is allowed a credit against the tax otherwise due under this Part in the amount of 20% of the federal tax credit allowable for child and dependent care expenses in tax year 1987; and 25% 50% of the federal tax credit allowable for child and dependent care expenses thereafter. In no case may this credit reduce the Maine income tax to less than zero.

SUMMARY

This bill increases the income tax credit for child care expenses from 25% to 50% of the amount equal to the federal tax credit allowable for child and dependent care expenses.