Sec. 4. 36 MRSA §5122, sub-§2, ¶¶N and O are enacted to read:

N.__Interest or dividends on obligations or securities of this State and its political subdivisions and authorities to the extent included in federal adjusted gross income; and

O.__Ten percent, up to a maximum of $2,000, of the amount contributed to an account pursuant to the Maine College Savings Program as established in Title 20-A, chapter 417-E.

Sec. 5. Application. That section of this Act that enacts the Maine Revised Statutes, Title 36, section 5122, subsection 2, paragraph O applies to tax years beginning on or after January 1, 2001.

SUMMARY

This bill provides an income tax deduction for 10%, up to an aggregate maximum of $2,000, of the amount contributed to a college savings account established under the Maine College Savings Program administered by the Treasurer of State and the Finance Authority of Maine. The bill requires the authority to provide information to the Department of Administrative and Financial Services, Bureau of Revenue Services for purposes of verifying eligibility for the deduction. The bill also makes technical changes to resolve a conflict.