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131st MAINE LEGISLATURE |
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LD 1544 |
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LR 1661(02) |
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An Act to Improve
Economic Security for Maine Children by Establishing the Maine Dependent Tax
Credit |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Taxation |
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Fiscal Note Required: Yes |
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Fiscal Note |
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FY 2023-24 |
FY 2024-25 |
Projections FY 2025-26 |
Projections FY 2026-27 |
Net Cost
(Savings) |
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General Fund |
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$32,393,918 |
$38,066,845 |
$43,581,147 |
$54,444,104 |
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Appropriations/Allocations |
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General Fund |
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$93,918 |
$123,845 |
$128,147 |
$132,604 |
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Revenue |
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General Fund |
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($32,300,000) |
($37,943,000) |
($43,453,000) |
($54,311,500) |
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Other Special Revenue Funds |
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($1,700,000) |
($1,997,000) |
($2,287,000) |
($2,858,500) |
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Fiscal Detail
and Notes |
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This bill
increases the Maine dependent exemption tax credit from $300 to $350
beginning in tax year 2023 and expands eligibility for the Maine credit
relative to current law starting in tax year 2026 when the Maine credit is
scheduled to decrease in conjunction with the expiration of federal child tax
credit provisions of the 2017 federal Tax Cuts and Jobs Act. The increased
amount and expansion of eligibility for this income tax credit will reduce
General Fund revenue by $32,300,000 in fiscal year 2023-24 and $37,943,000 in
fiscal year 2024-25 and reduce Local Government Fund revenue by $1,700,000 in
fiscal year 2023-24 and $1,997,000 in fiscal year 2024-25. |
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The bill includes
ongoing General Fund appropriations to the Department of Administrative and
Financial Services, Bureau of Revenue Services of $93,918 in fiscal year
2023-24 and $123,845 in fiscal year 2024-25 for one Tax Examiner position,
effective October 1, 2023, to audit tax returns to verify refundable
dependent exemption credit eligibility and amounts claimed. |
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