Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125 - BUREAU OF REVENUE SERVICES
Chapter 811 - STUDENT LOAN REPAYMENT TAX CREDIT
Section 125-811-05 - Credit limitations
Current through 2024-38, September 18, 2024
The refundable credit is limited to $2,500 per taxpayer annually and is subject to a $25,000 lifetime cap per taxpayer, except for the one-time election described in subsection A below. Each spouse on a married filing joint return is considered a separate taxpayer for purposes of the credit (i.e., except as provided in subsection A below, each spouse who is a qualified individual may receive a credit of up to $2,500 for each taxable year and a lifetime credit of up to $25,000).
A. A one-time election may be made to claim up to $3,500 (instead of up to $2,500) for either taxable year beginning in 2022 or 2023 by a qualified individual who received the educational opportunity tax credit under 36 M.R.S. §5217-D during any taxable year beginning in 2019, 2020, or 2021 that was based on loans acquired to obtain a bachelor or associate STEM degree awarded prior to January 1, 2020 as defined by section .01(A) above or to obtain a bachelor or associate STEM degree awarded on or after January 1, 2020 but before January 1, 2022, as defined by section .01(B) above. The one-time increase in the annual maximum credit, up to $1,000, does not apply against the $25,000 lifetime cap.
B. Unused educational opportunity tax credit amounts that were allowed to be carried forward from prior taxable years under 36 M.R.S. § 5217-D(2)(A) that do not exceed the 10-year carryforward limit may be claimed for purposes of the SLRTC for any taxable year beginning on or after January 1, 2022, and before January 1, 2027. For purposes of 36 M.R.S. §5217-E(2)(C) and this subsection, unused educational opportunity tax credit amounts do not include unused amounts that result from the educational opportunity tax credit calculation for employers under 36 M.R.S. § 5217-D(5).
