Educational Opportunity Tax Credit

Description

The credit for educational opportunity provides an income tax credit for Maine resident taxpayers who are qualifying graduates (and employers of qualifying graduates) and who make eligible education loan payments on loans obtained to earn:

• An associate or bachelor's degree from an accredited Maine college or university after 2007 and before 2016; or
• An associate or bachelor's degree from an accredited Maine or non-Maine college or university after 2015; or,
• A graduate degree from an accredited Maine college or university after 2015.

Eligible graduates must live, work, and pay taxes in Maine.

The credit is limited to tax except that for tax years beginning on or after January 1, 2013, the credit allowed to a program participant is refundable if the program participant obtains an associate degree or a bachelor’s degree in science, technology, engineering or mathematics (STEM degree). Unused portions of the nonrefundable credit may be carried forward for up to 10 years.

Certain limitations apply.

An employer of a qualifying graduate may also qualify for the credit on eligible education loan payments made during the term of the qualified employee’s employment.

For more information, see the links below:

Worksheets for claiming the educational opportunity income tax credit

Statutory References/Rules

• 20-A M.R.S.A., c. 428-C
• 36 M.R.S.A. § 5217-D
• Rule 812

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