An Act To Decrease the Tax Burden on Maine's Seniors
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5219-FF is enacted to read:
§ 5219-FF. Senior credit
1. Senior resident taxpayer. A resident individual who is 60 years of age or older is allowed a credit against the tax otherwise due under this Part equal to 50% of the amount of tax determined under this Part. This credit may not reduce the tax due under this Part to less than zero.
2. Nonresident taxpayer. A nonresident individual who is 60 years of age or older is allowed a credit against the tax otherwise due under this Part equal to 50% of the amount of tax determined under this Part multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the individual's entire federal adjusted gross income, as modified by section 5122. This credit may not reduce the tax due under this Part to less than zero.
3. Part-year resident taxpayer. An individual who is 60 years of age or older who files a return as a part-year resident in accordance with section 5224-A is allowed a credit against the tax otherwise due under this Part equal to 50% of the amount of tax determined under this Part. The amount of tax due under this Part for a part-year resident is determined by a fraction, the numerator of which is the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph A for that portion of the taxable year during which the individual was a resident plus the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph B for that portion of the taxable year during which the individual was a nonresident and the denominator of which is the individual's entire federal adjusted gross income, as modified by section 5122. This credit may not reduce the tax due under this Part to less than zero.
Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 2011.
summary
This bill provides a 50% income tax credit to taxpayers who are 60 years of age and older.