Sec. 1. 36 MRSA §5219-U is enacted to read:

§5219-U.__Credit for kindergarten to grade 12 education expenses

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Dependent child" means a child who, during the tax year, is a dependent of the taxpayer under the Code.

B.__"Equivalent instruction" means homeschooling or instruction provided elsewhere than at a school that is the equivalent of instruction provided in public schools for children of similar grades.

C.__"Qualified educational expenses"__means nonreimbursed payments by a taxpayer on behalf of a dependent child of the taxpayer for tutoring, tuition, student fees, school supplies, books and computer-based learning technology that are directly related to a program of instruction at a public or private school at which the dependent child is in attendance or to equivalent instruction received by a child in a nonschool environment that is connected to a school by Internet-facilitated distance technologies.

D.__"School" means a public or private elementary or secondary school offering education from kindergarten to grade 12, or any combination of those grades, where a child may fulfill state compulsory school attendance requirements.

2.__Credit.__A taxpayer is allowed a credit equal to 33% of the taxpayer's qualified educational expenses.__The credit may not exceed $750 for each dependent child of the taxpayer.__The credit provided by this section may not reduce the tax otherwise due under this Part below zero.

SUMMARY

This bill proposes an income tax credit for qualified educational expenses for kindergarten to grade 12 education of a dependent child. The credit is equal to 33% of qualified educational expenses up to $750 per dependent child.