Amend the bill by striking out everything after the enacting clause and before the summary and inserting the following:
‘Sec. 1. 36 MRSA §5125, sub-§3, ¶D, as amended by PL 2011, c. 380, Pt. N, §8 and affected by §§19 and 20, is further amended to read:
D. Reduced by any amount attributable to interest or expenses incurred in the production of income exempt from tax under this Part; and
Sec. 2. 36 MRSA §5125, sub-§3, ¶E, as amended by PL 2011, c. 380, Pt. N, §9 and affected by §§19 and 20, is further amended to read:
E. Reduced by the amount attributable to any contribution that qualified for and was actually utilized as a credit under section 5216-C . ; and
Sec. 3. 36 MRSA §5125, sub-§3, ¶G is enacted to read:
G. Reduced by the amount of federal itemized deductions included in the base for calculating the credit under section 5218-A.
Sec. 4. 36 MRSA §5218-A is enacted to read:
Sec. 5. Application. This Act applies to tax years beginning on or after January 1, 2015.’
This amendment clarifies the intent of the bill by specifying that the credit is for expenses paid for a dependent for adult day care, hospice services and respite care. To distinguish the new credit from the child care expenses credit, the adult dependent care expenses credit only applies to dependents who are at least 21 years of age. Also, unlike the child care expenses credit, the expenses do not have to be incurred to enable the taxpayer to be gainfully employed. Like the child care expenses credit, the expenses may not exceed $3,000 for one dependent or $6,000 for 2 or more dependents and the credit is refundable up to $500.