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

§5219-Q.__Private school tax credit

A taxpayer is allowed a credit of up to $500 against the tax imposed by this Part if the taxpayer has a child enrolled as a full-time student in a private educational institution and the taxpayer is entitled to claim the child as a dependent for that year.__The maximum amount of the credit is $500, regardless of the number of children enrolled.__This credit does not apply if the taxpayer's adjusted gross income for that year exceeds $50,000.__For the purpose of this section, "private educational institution" means any private educational institution, profit or nonprofit, that provides a program of education outside the public school system.__The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of tax otherwise due under this Part.

SUMMARY

This bill creates a private school education tax credit for a taxpayer that has a child enrolled as a full-time student and is entitled to claim the child as a dependent. The amount of the tax credit is $500 or the amount of tax due for that year, whichever is less. The taxpayer's combined adjusted gross income may not exceed $50,000 for that year.