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123rd MAINE LEGISLATURE |
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LD 1856 |
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LR 2619(02) |
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An Act To Allow a
Tax Credit for College Loan Repayments |
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Fiscal Note for
Bill as Amended by Committee Amendment "A" |
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Committee: Taxation |
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Fiscal Note Required: Yes |
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Fiscal Note |
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2007-08 |
2008-09 |
Projections 2009-10 |
Projections 2010-11 |
Net Cost
(Savings) |
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General Fund |
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$0 |
$147,831 |
$1,094,245 |
$3,569,816 |
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Revenue |
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General Fund |
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$0 |
($147,831) |
($1,094,245) |
($3,569,816) |
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Other Special Revenue Funds |
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$0 |
($7,945) |
($60,022) |
($195,831) |
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Fiscal Detail
and Notes |
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This is an
initiated bill which cannot be amended to include any appropriations or
allocations without becoming a competing measure. If the bill is either approved by the
Legislature and signed into law by the Governor or approved by the voters in
a statewide election in November, the 123rd Legislature will need to provide
the necessary appropriations in separate legislation. |
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The
bill provides a tax credit for certain educational loan payments and is
available to eligible graduates and employers making loan payments on behalf
of qualifying employees. Because
unused credits may be carried over for up to 10 years and more graduates and
employers are added to the program each year, the cost rises substantially
over time. The General Fund revenue
loss associated with the tax credit is estimated to be $147,831 in fiscal
year 2008-09, rises to $9,100,000 in fiscal year 2011-12 and increases to
$62,900,000 by fiscal year 2017-18. |
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The
bill requires the financial aid offices at the University of Maine System,
the Maine Community College System and the Maine Maritime Academy, as well as
all other accredited Maine junior colleges, colleges or universities, to
administer parts of the Job Creation Through Educational Opportunity
Program. The fiscal impact to each
individual financial aid office can not be determined at this time. The Maine Community College System has
indicated that it will require one additional full-time person at the
Southern Maine Community College office and an average of a half-time person
at each of its other financial aid offices for a total cost of approximately
$250,000 per year. The University of
Maine System is not able to determine a fiscal impact until further aspects
of the administrative requirements are more clearly defined. Additional costs to Maine Maritime Academy
can be absorbed within existing budgeted resources. Maine Revenue Services will require an
additional General Fund appropriation of $61,016 in fiscal year 2008-09 for
it's related administrative costs, including funds for one Tax Examiner
position. |
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Additional costs
to the State Board of Education associated with drafting the opportunity
contract can be absorbed within existing budgeted resources. |
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