An Act To Facilitate Student Loan Repayment by Allowing Graduates To Claim Educational Opportunity Tax Credits on Eligible Portions of Consolidated Loans
Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, in Public Law 2015, chapter 267, certain changes were made to the educational opportunity tax credit, including allowing eligible student loans that had been consolidated with ineligible loans to remain eligible for the tax credit; and
Whereas, these changes do not apply until tax years beginning on or after January 1, 2016; and
Whereas, in order to meet the purpose of the tax credit and provide some relief to graduates with eligible student loans, it is imperative that any delays in providing this relief be eliminated as soon as possible; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Sec. 1. PL 2015, c. 267, Pt. QQQ, §6 is amended to read:
Sec. QQQ-6. Application. This Part applies to tax years beginning on or after January 1, 2016 , except that the section of this Part that amends the Maine Revised Statutes, Title 36, section 5217-D, subsection 2, paragraph B applies to tax years beginning on or after January 1, 2015.
Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.
summary
Currently, under the tax credit for educational opportunity, an individual is allowed a credit against income tax owed by that individual for payments made on qualified student loans used to obtain a postsecondary degree. Prior to tax years beginning January 1, 2016, however, if a student loan eligible for the tax credit is consolidated with an ineligible loan, the otherwise eligible student loan is rendered ineligible by the consolidation. Public Law 2015, chapter 267 allows an eligible student loan consolidated with an ineligible loan to be eligible for the tax credit, but only for tax years beginning on or after January 1, 2016.
This bill provides that the change made by Public Law 2015, chapter 267 regarding consolidated student loans applies to tax years beginning on or after January 1, 2015.