A.__The full repayment of the education loan of the eligible graduate;

B.__The expiration of 5 years following the graduation date of the eligible graduate; and

C.__The expiration of 4 years following the date of hire of the eligible graduate.

Any amount withheld after the earliest of the conditions specified in paragraphs A, B and C must be treated as Maine individual income tax withholding.

§6606.__State tax exemption

Notwithstanding Part 8, a loan payment deduction made pursuant to section 6605 is deemed to be a payment of Maine taxes for purposes of section 5111.

§6607.__Penalty

An eligible employee whose employment is terminated or who terminates employment from an eligible employment position earlier than 4 years after beginning employment in the eligible employment position shall pay the full amount of state income taxes that would have been due for the period of time the loan payment deductions were made pursuant to section 6605.__This section does not apply if the eligible employment position is terminated due to the closing of the eligible business or a reduction in workforce size.

§6608.__Rules; application forms

The bureau shall adopt rules to implement the provisions of this chapter.__Rules adopted pursuant to this section are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.__The bureau shall provide application forms and other necessary documents to qualified businesses.

SUMMARY

This bill establishes the Graduate Retention Program, the purpose of which is to encourage recent college or advanced degree program graduates to work in Maine. The program is available to persons who are recent graduates of a postsecondary