The student loan repayment tax credit (“SLRTC”) replaces the repealed educational opportunity tax credit (“EOTC”) for tax years beginning on or after January 1, 2022. For more information on the EOTC, see the Educational Opportunity Tax Credit.
The SLRTC is a component of the Job Creation through Educational Opportunity program, which began in 2008. The purpose of the program is to provide an income tax credit for Maine resident individual income tax taxpayers who are making eligible education loan payments on loans that are part of the financial aid package; that is, loans obtained to earn an associate, bachelor’s, or a graduate degree from an accredited Maine or non-Maine community college, college, or university after 2007.
Qualified individuals must have a minimum amount of earned income, to be determined annually based on the state minimum wage, and live and file income taxes in Maine after graduation.
The SLRTC is refundable. Certain limitations apply.
For more information, see the links below:
- 20-A M.R.S., c. 428-C
- 36 M.R.S. § 5217-E
- Rule 811 - COMING SOON