For income tax years beginning on or after January 1, 2004, an amount equal to the total premiums spent for qualified long-term care insurance contracts certified under Title 24- A, section 5075-A, as long as the amount subtracted is reduced by any amount claimed as a deduction for federal income tax purposes in accordance with the Code, Section 162(l) and by the long-term care premiums claimed as an itemized deduction pursuant to section 5125.; and

Sec. 5. 36 MRSA §5122, sub-§2, ķU is enacted to read:

U.__For income tax years beginning on or after January 1, 2005, an amount equal to costs incurred by a resident to send a child to a school outside of the municipality in which the resident lives pursuant to Title 20-A, chapter 310.__If a resident is issued a tax credit pursuant to section 343, the amount of that credit must be deducted from the amount claimed under this paragraph.

SUMMARY

Current law allows a resident of a municipality to send a child to a school outside that municipality; the costs of doing so are borne by the resident.

This bill allows a resident whose child attends an overcrowded school to send that child to another public or private school and seek a property tax credit from the municipality in which the resident lives. The amount of the property tax credit is determined by the municipality. This bill also provides an income modification to that resident. The amount of the modification is limited to the difference between the actual cost and the amount of the property tax credit issued by a municipality to the resident.