Sec. NNN-1. 36 MRSA §2524, sub-§2, ¶C is enacted to read:
C. "Quality child care" has the meaning set forth in section 5219-Q, subsection 1.
Sec. NNN-2. 36 MRSA §2524, sub-§4 is enacted to read:
4. Quality child care. The credit allowed under subsection 1 doubles in amount if the day care service provided by the taxpayer constitutes quality child care.
Sec. NNN-3. 36 MRSA §5217, sub-§2, ¶C is enacted to read:
C. "Quality child care" has the meaning set forth in section 5219-Q, subsection 1.
Sec. NNN-4. 36 MRSA §5217, sub-§4 is enacted to read:
4. Quality child care. The credit allowed under subsection 1 doubles in amount if the day care service provided by the taxpayer constitutes quality child care.
Sec. NNN-5. 36 MRSA §5218, as amended by PL 1987, c. 772, §40, is further amended to read:
§5218. Income tax credit for child care expenses
A resident individual shall be is allowed a credit against the tax otherwise due under this Part in the amount of 20% of the federal tax credit allowable for child and dependent care expenses in tax year 1987; and 25% of the federal tax credit allowable for child and dependent care expenses thereafter. In no case may this credit reduce the Maine income tax to less than zero. This credit doubles in amount if the child care expenses were incurred through the use of quality child care. As used in this section, unless the context otherwise indicates, "quality child care" has the meaning set forth in section 5219-Q, subsection 1. The credit allowed by this section may result in a refund of up to $500.
Sec. NNN-6. 36 MRSA §5219-Q is enacted to read:
§5219-Q. Quality child care investment credit
1. Definition. As used in this section, unless the context otherwise indicates, "quality child care" means care provided at a child care site that meets minimum licensing standards and:
A. Is accredited by an independent, nationally recognized program approved by the Department of Human Services, Office of Head Start and Child Care;
B. Utilizes recognized quality indicators for child care services approved by the Department of Human Services, Office of Head Start and Child Care; and
C. Includes provisions for parent and client input, a review of the provider's policies and procedures, a review of the provider's program records and an on-site program review.
For large, multi-function agencies, only those portions of the child care sites that were reviewed by the accrediting body may be considered quality child care sites.
2. Credit allowed. A taxpayer is allowed a credit against the tax imposed by this Part in an amount equal to the qualifying portion of expenditures paid or expenses incurred by the taxpayer for investments in child care services as calculated pursuant to subsection 3.
3. Qualifying portion. For purposes of calculating the credit, the qualifying portion is:
A. For a corporation, 30% of up to $30,000 of expenditures, apportioned if part of an affiliated group engaged in a unitary business; and
B. For an individual taxpayer, if the taxpayer expends at least $10,000 in one year, $1,000 each year for 10 years and $10,000 at the end of the 10-year period.
4. Limitation; carry-over. The credit allowed under subsection 2 may not reduce the tax otherwise due under this Part below zero. Any unused portion of the credit may be carried over to the following year or years until exhausted.
Sec. NNN-7. Estimate and transfer revenue. The State Tax Assessor shall notify the State Controller, prior to the end of each fiscal year after the effective date of this Part, of the estimated amount of General Fund revenue lost as a result of the implementation of this Part. The State Controller shall transfer the amount from the Fund for a Healthy Maine to the General Fund in that same fiscal year.
Sec. NNN-8. Application. This Part applies to tax years beginning on or after January 1, 2001.
Sec. NNN-9. Effective date. This Part takes effect when the State Treasurer certifies to the Legislature that sufficient revenue has been credited to the Fund for a Healthy Maine to fully fund all allocations and authorized transfers during that fiscal year.
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