LD 1284 LR 1037(01)
An Act To Create a Scholarship Granting Organization Tax Credit
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Sen. Sherman of Aroostook
Committee: Taxation
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
2009-10 2010-11 Projections 2011-12 Projections 2012-13
Net Cost (Savings)
General Fund $30,865,216 $45,074,692 $62,425,150 $82,342,054
General Fund $70,915 $91,864 $64,620 $97,458
General Fund ($30,794,301) ($44,982,828) ($62,360,530) ($82,244,596)
Other Special Revenue Funds ($1,689,139) ($2,467,412) ($3,420,622) ($4,511,307)
Fiscal Detail and Notes
This bill establishes a tax credit of up to 50% of tax liability each year to individuals and corporations who contribute money to scholarship granting organizations.  The General Fund revenue loss is estimated to be $30,794,301 in FY 2009-10 and $44,982,828 in FY 2010-11.  The Local Government Fund revenue loss is $1,689,139 in FY 2009-10 and $2,467,412 in FY 2010-11.  Maine Revenue Services (MRS) does not currently have the resources or the expertise to provide oversight with regard to the initial and ongoing qualifications and duties of the scholarship granting organization program.  Therefore, MRS requires $11,000 for initial computer programming costs and beginning July 1, 2009 requires a .5 FTE Revenue Agent and beginning January 1, 2010 requires a .25 FTE Tax Examiner to carry out the program objectives.