MaineAn Act To Expand The Dependent Exemption Tax Credit
This proposed replacement would double the credit for qualifying dependents under six starting in 2025 and set income-based reductions for taxpayers claiming it.
What it does
For tax years starting in 2025, the credit would double for each qualifying child or dependent who has not turned six by year-end.
The amendment sets income levels where the credit starts to shrink, with different levels and reduction amounts based on filing status.
The amendment would provide $31,800 for one-time computer programming costs at the Revenue Services Bureau.
Argument forFamilies claiming a child or dependent under six could receive a larger credit, which may help with young children's care costs.
Argument againstTaxpayers above the listed income levels could receive a smaller credit as income rises, leaving them with less tax relief.
More detail
The amendment would double the credit for each qualifying child or dependent under age six. It would cover a qualifying child or dependent who has not turned six by the end of the tax year. The increase would apply to tax years beginning on or after January 1, 2025.
The amendment would reduce the credit as a taxpayer's income rises. These income-based reductions apply to taxpayers claiming the dependent exemption tax credit. For tax years beginning before 2025, the text sets a $400,000 income point for joint returns and $200,000 for other returns, with a $7.50 reduction for each $1,000, or part of $1,000, above the applicable point. For tax years beginning in 2025 or later, the text sets a $20 reduction for each $500, or part of $500, above $125,000 for single filers, $150,000 for heads of household, and $175,000 for joint filers or surviving spouses. Married people filing separately use half the joint-filer amount. The text sets one reduction schedule for tax years beginning before January 1, 2025, and another for tax years beginning on or after that date.
The amendment would provide $31,800 for one-time computer programming costs. The money would go to the Department of Administrative and Financial Services' Revenue Services Bureau. The appropriation is listed for fiscal year 2025–26, with no funding listed for 2026–27.
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Where it stands
- Introduced
- Passed 1st Chamber
- Became Law
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 29Died in Possession of the Senate when the Legislature adjourned Sine Die and was PLACED IN THE LEGISLATIVE FILES. (DEAD)Died
- 2025
- Jun 25CARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
- Jun 16On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending ENACTMENT in concurrence
- Jun 16Sent for concurrence. ORDERED SENT FORTHWITH.
- Jun 16PASSED TO BE ENACTED.Became Law
- Jun 13In concurrence. ORDERED SENT FORTHWITH.
- Vote recorded ACC REPORT "A" OTP-AM. Result: pass.Lower
- Jun 13The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (S-389).Minor
- Jun 13Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.
- Jun 13Committee Amendment "A" (S-389) was READ and ADOPTED.Minor
- Jun 13The Bill was READ ONCE.Minor
- Jun 13(Yeas 103 - Nays 40 - Absent 6 - Excused 2)
- Jun 13ROLL CALL NO. 493
- Jun 13On motion of Representative CLOUTIER of Lewiston, REPORT A Ought to Pass as Amended was ACCEPTED.
- Jun 13Reports READ.
- Jun 13Sent down for concurrence.
- Jun 13Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (S-389)Minor
- Jun 13Committee Amendment "A" (S-389) READ and ADOPTEDMinor
- Jun 13READ ONCEMinor
- Jun 13Roll Call Ordered Roll Call Number 525 Yeas 35 - Nays 0 - Excused 0 - Absent 0
- Jun 13On motion by Senator GROHOSKI of Hancock The Report A Ought to Pass As Amended by Committee Amendment "A" (S-389) Report ACCEPTED PREVAILED
- Jun 12Reported Out - OTP-AM/ONTP/OTP-AM
- Vote recorded ACCEPT REPORT 'A' OUGHT TO PASS AS AMENDED. Result: pass.Upper
- Apr 24Voted - Divided Report
- Apr 24Work Session Held
- Mar 25In concurrence. ORDERED SENT FORTHWITH.
- Mar 25The Bill was REFERRED to the Committee on TAXATION.Minor
- Mar 25Committee on TAXATION suggested and ordered printed REFERENCE to the Committee on TAXATION Ordered sent down forthwith for concurrenceIntroduced
Taxes & Budget