Sec. 1. 36 MRSA §5219-Q is enacted to read:

§5219-Q.__Earned income tax credit

The following taxpayers are eligible for a refundable credit against the tax otherwise due under this Part.

1.__Income below 100% of the federal poverty level.__A taxpayer with at least one dependent child and with income below 100% of the federal poverty level who qualifies for the federal earned income tax credit qualifies for a state earned income tax credit of 20% of the federal credit.

2.__Income from 100% to less than 133% of the federal poverty level.__A taxpayer with at least one dependent child and with income from 100% to less than 133% of the federal poverty level who qualifies for the federal earned income tax credit qualifies for a state earned income tax credit of 15% of the federal earned credit.

3.__Income from 133% to less than 185% of the federal poverty level.__A taxpayer with at least one dependent child and with income from 133% to less than 185% of the federal poverty level who qualifies for the federal earned income tax credit qualifies for a state earned income tax credit of 10% of the federal credit.

Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 1999.

SUMMARY

This bill establishes a Maine earned income tax credit for low-income families. The credit is 20% of the federal earned income tax credit for families below 100% of the federal poverty level, 15% for families whose income is from 100% to below 133% of the federal poverty level and 10% for families whose income is from 133% to below 185% of the federal poverty level.