H.P. 899 - L.D. 1296
Sec. B-1. 36 MRSA §5122, sub-§2, ¶FF is enacted to read:
FF. To the extent included in federal adjusted gross income, student loan payments made by the taxpayer's employer in accordance with section 5217D.
Sec. B-2. 36 MRSA §5217-D, sub-§1, ¶F, as enacted by PL 2007, c. 469, Pt. B, §1, is repealed.
Sec. B-3. 36 MRSA §5217-D, sub-§1, ¶G, as enacted by PL 2007, c. 469, Pt. B, §1, is amended to read:
G. "Opportunity program participant" means an individual who enters into an opportunity contract with the State, obtains the specified degree and complies with the requirements under Title 20A, section 12542 , subsections 3 to 5.
Sec. B-4. 36 MRSA §5217-D, sub-§3, as enacted by PL 2007, c. 469, Pt. B, §1, is amended to read:
3. Calculation of the credit.
The following provisions govern the calculation of the credit in this section is determined on the basis of the amount under paragraph A or paragraph B, whichever is less, multiplied by the proration factor. For purposes of this subsection, the proration factor is the amount derived by dividing the total number of academic credit hours earned for a bachelor's or associate degree after December 31, 2007 by the total number of academic credit hours earned for the bachelor's or associate degree.
A. If the relevant opportunity program participant's opportunity contract limits the amount of the credit to a benchmark loan payment , and the relevant opportunity program participant's is less than the actual monthly payment due is higher than that amount, then the credit claimed may not exceed the product of the benchmark loan payment and the number of months during the taxable year in which the taxpayer made loan payments.
B. If the relevant opportunity program participant's opportunity contract certifies that the principal for the relevant loans is at or below the level of the principal cap, or if the relevant opportunity program participant’s actual monthly loan payment amount is below less than the benchmark loan payment, the taxpayer may claim a credit must be based only on regularly scheduled the actual loan payments actually made during the taxable year.
C. If the credit is claimed on behalf of an individual who was already enrolled in an associate or a bachelor's degree program at an accredited Maine junior college, college or university, as defined in Title 20A, section 12541, subsection 1, on the commencement of the Job Creation Through Educational Opportunity Program under Title 20A, chapter 428C, the percentage figure listed in the opportunity contract, as specified under Title 20A, section 12542, subsection 5, must be applied to the amount determined under paragraph A or B.
Sec. B-5. Application. This Part applies to tax years beginning on or after January 1, 2010.