LD 334
pg. 2
Page 1 of 2 An Act to Provide Incentives to Families Who Save for College LD 334 Title Page
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LR 626
Item 1

 
ineligible deferred compensation plan under Section
457(f) of the Code;

 
Sec. 4. 36 MRSA §5122, sub-§2, ¶¶N and O are enacted to read:

 
N.__Interest or dividends on obligations or securities of
this State and its political subdivisions and authorities to
the extent included in federal adjusted gross income; and

 
O.__Ten percent, up to a maximum of $2,000, of the amount
contributed to an account pursuant to the Maine College
Savings Program as established in Title 20-A, chapter 417-E.

 
Sec. 5. Application. That section of this Act that enacts the Maine
Revised Statutes, Title 36, section 5122, subsection 2, paragraph
O applies to tax years beginning on or after January 1, 2001.

 
SUMMARY

 
This bill provides an income tax deduction for 10%, up to an
aggregate maximum of $2,000, of the amount contributed to a
college savings account established under the Maine College
Savings Program administered by the Treasurer of State and the
Finance Authority of Maine. The bill requires the authority to
provide information to the Department of Administrative and
Financial Services, Bureau of Revenue Services for purposes of
verifying eligibility for the deduction. The bill also makes
technical changes to resolve a conflict.


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