LD 1383 LR 991(02)
An Act To Attract Young People to Maine by Expanding the Job Creation Through Educational Opportunity Program
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
FY 2015-16 FY 2016-17 Projections  FY 2017-18 Projections  FY 2018-19
Net Cost (Savings)
General Fund $0 $325,452 $3,591,782 $7,106,782
General Fund $0 $40,452 $76,782 $76,782
General Fund $0 ($285,000) ($3,515,000) ($7,030,000)
Other Special Revenue Funds $0 ($15,000) ($185,000) ($370,000)
Fiscal Detail and Notes
This bill expands eligibility for the educational opportunity tax credit to persons graduating from non-Maine colleges, to cover graduate degrees and to permit coverage of refinanced or consolidated loans.  It would result in a loss of General Fund revenue of $285,000 in fiscal year 2016-17 and a loss of Local Government Fund revenue of $15,000 in fiscal year 2016-17.  The revenue loss will increase significantly for a period of approximately 15 years after fiscal year 2018-19 as new graduates become eligible, loan repayment deferments end and taxpayers exhaust credit carryforwards. The bill includes General Fund appropriations to the Bureau of Maine Revenue Services of $40,452 in fiscal year 2016-17 and $76,782 annually thereafter for one Tax Examiner position and related costs to review and process additional claims for the tax credit.