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

§5219-U.__Educational attainment investment tax credit

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Eligible student" means a student who is a resident of the State and who is also a graduate from an approved secondary school or the equivalent, including, but not limited to, a student who received equivalent instruction through home instruction, a student who matriculated at an accredited public or private institution of higher education in the State prior to high school graduation, a student who successfully completed a general educational development examination or its equivalent or a student participating in a regional postsecondary educational program operated through the New England Higher Education Compact set forth in Title 20-A, chapter 413.

B.__"Qualified scholarship organization" means a private, nonprofit organization qualified under Section 501(c)(3) of the Code and certified by the Secretary of State pursuant to subsection 4 that awards at least 95% of the contribution that is eligible for a tax credit under this section for one of the following purposes:

(1)__To provide need-based scholarships or to repay loans related to education to eligible students who are or will be attending an accredited public or private institution of higher education in the State; or

(2)__To repay postsecondary education loans for any person who, upon graduation from an accredited public or private institution of higher education outside of the State, resides in the State and is employed by a business or organization in the State or resides in the State and is self-employed.

C.__"Resident of the State" means a person who is either an independent student who has been a domiciled resident of the State for at least one calendar year prior to the date of attendance at an accredited public or private educational institution or a dependent student whose parent or legal guardian has been a domiciled resident of the State at least one calendar year prior to the date of attendance at an accredited public or private educational institution.__A