2.__Nonresident or part-year resident taxpayer.__A nonresident or part-year resident individual is allowed a credit against the tax otherwise due under this Part in the amount of 25% of the federal tax credit allowable for child and dependent care expenses multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1- C, paragraph B, to the nonresident's entire federal adjusted gross income, as modified by section 5122.__In no case may this credit reduce the Maine income tax to less than zero.

3.__Quality child care services.__The credit provided by subsections 1 and 2 doubles in amount if the child care expenses were incurred through the use of quality child care services.__As used in this section, unless the context otherwise indicates, "quality child care services" has the meaning set forth in section 5219-Q, subsection 1.

Sec. 8. 36 MRSA §5219-B, as enacted by PL 1987, c. 504, §32, is repealed.

Sec. 9. Contingent effective date. That section of this Act that amends the Maine Revised Statutes, Title 36, section 5217, subsection 4 takes effect only when the State Treasurer certifies that sufficient revenue has been credited in accordance with Public Law 1999, chapter 401, Part NNN, section 9.

SUMMARY

This bill contains the recommendations of the Joint Standing Committee on Taxation as a result of its review of income tax expenditures pursuant to the Maine Revised Statutes, Title 36, chapter 9.

The bill accomplishes the following.

1. It deletes the income tax deduction for "seller-sponsored loans" because the provision does not appear to have been used since its enactment in 1983.

2. It repeals the deduction for 1985-87 tax conformity adjustments because they are obsolete.

3. It amends the deduction for the new jobs credit to indicate the change of name of the credit on the federal level.

4. It amends terms used in the credit for employer-assisted day care to resolve a conflict resulting from changes made in 1999 and to reflect changes in terminology enacted in Public Law 1999, chapter 708.

5. It repeals the 1987 tax conformity credit because it is obsolete.