125th MAINE LEGISLATURE
		LD 695		LR 1475(01)
	An Act To Reduce Taxes and Promote Employment
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Flemings of Bar Harbor
	Committee: Taxation
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			FY 2011-12	FY 2012-13	Projections  FY 2013-14	Projections  FY 2014-15
Net Cost (Savings)
	General Fund		$13,894,971	$13,919,101	$13,919,101	$13,919,101
Appropriations/Allocations
	General Fund		$119,971	$144,101	$144,101	$144,101
Revenue
	General Fund		($13,775,000)	($13,775,000)	($13,775,000)	($13,775,000)
	Other Special Revenue Funds		($725,000)	($725,000)	($725,000)	($725,000)
Fiscal Detail and Notes
	Increasing the state earned income tax credit from 5% to 10% of the federal earned income tax credit and making the state earned income tax credit refundable will result in reduced revenue to the General Fund and will reduce revenue sharing starting in fiscal year 2011-12.  Administering the new credit system inaugurated by this bill will require General Fund appropriations for two Tax Examiner positions and related administrative support.  Maine Revenue Services notes that the refunds given pursuant to the new credit system would be subject to setoff for tax debts and debts owed to other state agencies.