S.P. 186 - L.D. 579
An Act to Encourage Contributions to Family Development Account Reserve Funds
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 10 MRSA §1079, sub-§3, as enacted by PL 1997, c. 518, §2, is amended to read:
3. Duties; report. The committee shall meet at least 4 2 times per year to study and evaluate the effectiveness of family development accounts in this State and other states; make recommendations with respect to changes in law, rule or policy that will enhance the ability of account holders to improve their economic security; and advise the authority, relevant state agencies, community development organizations and the Legislature as to its findings. The committee shall provide a comprehensive report to the joint standing committee of the Legislature having jurisdiction over business and economic development matters and the joint standing committee of the Legislature having jurisdiction over health and human services matters by March 1st of each year, beginning in 1999.
Sec. 2. 36 MRSA §198, sub-§4, ¶F, as enacted by PL 1985, c. 430, §3, is amended to read:
F. Section 5202-A; and
Sec. 3. 36 MRSA §198, sub-§4, ¶G, as amended by PL 1989, c. 508, §7, is repealed.
Sec. 4. 36 MRSA §198, sub-§4, ¶¶I, J, K, L, N and O, as enacted by PL 1989, c. 508, §7, are repealed.
Sec. 5. 36 MRSA §198, sub-§4, ¶P is enacted to read:
P. Chapter 822.
Sec. 6. 36 MRSA §5216-C is enacted to read:
§5216-C. Contributions to family development account reserve funds
1. Credit allowed. A taxpayer who contributes to a family development account reserve fund as defined in Title 10, section 1075 is allowed a credit against the tax imposed by this Part equal to the lower of:
A. Twenty-five thousand dollars; or
B. Fifty percent of the amount contributed by the taxpayer.
Only one credit may be claimed on each annual income tax return regardless of filing status. The credit allowed under this section may not reduce the tax to less than 0 and must be applied after allowance for all other eligible credits. A taxpayer who claims a credit under this section may not claim an itemized charitable deduction under section 5125 for the amount of the contribution that qualified for the credit.
2. Aggregate limitation. The total amount of contributions that may be claimed as credits under this section in a state fiscal year is limited to $200,000.
3. Verification of eligibility. The Finance Authority of Maine, referred to in this section as the "authority," shall verify all claims for a credit under this section and shall provide the assessor with a list of all eligible claimants. The list must be prioritized based upon the date of the eligible contribution. The authority may establish procedures requiring submission of information necessary to verify eligibility by family development account reserve fund administrators.
Sec. 7. Application. This Act applies to taxable years beginning on or after January 1, 2000.
Effective September 18, 1999, unless otherwise indicated.
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