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

§5219-Y.__Maine Residents Property Tax Program

A taxpayer is allowed a credit against the tax imposed by this Part in the amount of the benefit paid to the taxpayer during the taxable year pursuant to chapter 907.

Sec. 2. 36 MRSA §6221 is enacted to read:

§6221.__Income tax credit option

A person eligible for benefits under this chapter may elect to receive those benefits as a credit against income tax as provided in section 5219-Y if the credit is claimed on the claimant's annual income tax return.

Sec. 3. Application date. Those sections of this Act that enact the Maine Revised Statutes, Title 36, sections 5219-Y and 6221 apply to tax years beginning on or after January 1, 2006.

SUMMARY

This bill permits claimants to claim benefits under the Maine Residents Property Tax Program as a refundable income tax credit.