Sec. 1. 36 MRSA §2524, sub-§2, śC is enacted to read:

C.__"Quality child care" has the meaning set forth in rules adopted by the Department of Human Services under section 5219-Q, subsection 5.

Sec. 2. 36 MRSA §2524, sub-§4 is enacted to read:

4.__Quality child care.__The credit allowed under this section doubles in amount if the day care service provided by the taxpayer constitutes quality child care.

Sec. 3. 36 MRSA §5218, as amended by PL 1987, c. 772, §40, is further amended to read:

§5218. Income tax credit for child care expenses

A resident individual shall be is allowed a credit against the tax otherwise due under this Part in the amount of 20% of the federal tax credit allowable for child and dependent care expenses in tax year 1987; and 25% of the federal tax credit allowable for child and dependent care expenses thereafter. In no case may this credit reduce the Maine income tax to less than zero. This credit doubles in amount if the child care expenses were incurred through the use of quality child care.__As used in this section, unless the context otherwise indicates, "quality child care" has the meaning set forth in rules adopted by the Department of Human Services under section 5219-Q, subsection 5.__ The credit allowed by this section may result in a refund of up to $500.

Sec. 4. 36 MRSA §5219-Q is enacted to read:

§5219-Q.__Quality child care investment credit

1.__Definition.__As used in this section, unless the context otherwise indicates, "quality child care" has the meaning developed under subsection 5.

2.__Credit allowed.__A taxpayer is allowed a credit against the tax imposed by this Part in an amount equal to the qualifying portion of expenditures paid or expenses incurred by the taxpayer for the creation of quality child care services as calculated pursuant to subsection 3.

3.__Qualifying portion.__For purposes of calculating the credit, the qualifying portion is:

A.__Thirty percent for up to $30,000 of expenditures; and