HP0443, LD 624, item 1, An Act To Encourage Local Business Involvement in Local Schools

An Act To Encourage Local Business Involvement in Local Schools

Be it enacted by the People of the State of Maine as follows:

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

§ 5219-II. Employer adopt-a-school tax credit

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

A. "Qualified adopt-a-school activity" means an activity that benefits a qualified school, including, but not limited to, contributing cash; donating supplies, equipment or other tangible property; providing services to a student at a qualified school at no profit to the qualified employer; providing employees of the qualified employer with paid time off to volunteer at a qualified school; and providing an internship for a student enrolled in a qualified school.

B. "Qualified employer" means an employing unit, as defined in Title 26, section 1043, subsection 10, located in the State that engages in a qualified adopt-a-school activity.

C. "Qualified school" means a public elementary or secondary school located in the same county as or within 25 miles of the qualified employer.

2. Credit allowed. A qualified employer is allowed a credit, not to exceed the limitation in subsection 3, against the tax imposed by this Part in an amount equal to the cost of all qualified adopt-a-school activities provided by the qualified employer in the course of a calendar year.

3. Limitations. The amount of the credit allowed under this section for any one taxable year may not exceed 50% of the tax imposed by this Part on the qualified employer for the taxable year before application of the credit. The credit may not reduce the tax otherwise due under this Part to less than zero.

4. Carry forward. Credits not taken because of the limitation in subsection 3 must be taken in the next taxable year in which the credit may be taken, but the limitation of subsection 3 also applies to the carry-forward years. In no case may this carry-forward period exceed 15 years.

Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 2013.

summary

This bill provides a nonrefundable income tax credit to a qualified employer equal to the amount expended on a qualified adopt-a-school activity that benefits a public elementary or secondary school. The credit may not exceed 50% of the tax liability of the qualified employer for the taxable year before application of the credit. A qualified adopt-a-school activity includes contributing cash; donating supplies, equipment or other tangible property; providing services to a student at a qualified school at no profit to the qualified employer; providing employees of the qualified employer with paid time off to volunteer at a qualified school; and providing an internship for a student enrolled in a qualified school.

HP0443 LD 624	Session - 126th Maine Legislature		LR 1295 Item 1
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