LD 835 LR 1210(01)
An Act To Strengthen Maine's Economy through Improvements to the Educational Opportunity Tax Credit
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Knight of Livermore Falls
Committee: Taxation
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
FY 2011-12 FY 2012-13 Projections  FY 2013-14 Projections  FY 2014-15
Net Cost (Savings)
General Fund $104,500 $104,500 $104,500 $104,500
General Fund ($104,500) ($104,500) ($104,500) ($104,500)
Other Special Revenue Funds ($5,500) ($5,500) ($5,500) ($5,500)
Fiscal Detail and Notes
Amending the educational opportunity tax credit by removing restrictions on the term of eligible loans and by making the credit refundable will reduce General Fund revenues and reduce revenue sharing.  Maine Revenue Services (MRS) states that revenue reductions may be substantially larger beyond fiscal year 2014-15 as more cohorts become eligible for a full credit and participation levels increase.  The refundability of the credit creates greater uncertainty regarding the size of the potential revenue reduction.