126th MAINE LEGISLATURE
LD 455 LR 1059(01)
An Act To Increase the State Earned Income Credit
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Stuckey of Portland
Committee: Taxation
Fiscal Note Required: Yes
             
Preliminary Fiscal Impact Statement
Current biennium revenue decrease - General Fund
Current biennium cost increase - General Fund
Fiscal Detail and Notes
Increasing the state earned income credit from 5% to 50% of the federal earned income credit for tax years beginning on or after January 1, 2013 and making the credit fully refundable will reduce General Fund revenue and Municipal Revenue Sharing significantly.  It is estimated the total impact could be in the $79 million to $89 million range each year.  In addition to the revenue reduction, Maine Revenue Services will require a General Fund appropriation for two additional Tax Examiner positions and related administrative support.