2012 Double Tax Credit Eligible Licensed Child Care Providers

The Maine legislature passed a law that expands the income tax credit for child care expenses. A Maine taxpayer who enrolls a child in a child care center or home with a Quality Certificate is eligible for a double child care tax credit on their state income tax return. Currently an individual is allowed a credit against the tax otherwise due in the amount of 25% of the federal tax credit allowable for child and dependent care. In the new law, this credit doubles in amount if the child care expenses were incurred through the use of quality child care. The credit may result in a refund of up to $500.