An Act To Support Employees with Significant Commutes
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5219-OO is enacted to read:
§ 5219-OO. Credit for long-distance commuters
1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. "Commute" means travel by means of a motor vehicle owned, leased or rented by an individual between the individual's primary residence and the individual's primary place of employment. The distance traveled must be computed by using the most reasonable direct route of travel.
B. "Primary place of employment" means the location of an individual's employer to which the individual travels on average at least 3 days per week.
C. "Primary residence" means the place of residence of an individual occupied by the individual as a home.
2. Credit allowed. An individual who has a round-trip commute of more than 50 miles is allowed a credit against the taxes imposed by this Part in an amount equal to 25¢ per mile for miles commuted during the tax year and the amount of tolls paid for the commute.
3. Limitation. The credit allowed under this section does not apply to miles or tolls for which a deduction is claimed under the Code, Section 162 or for which the individual is compensated by the individual's employer. The credit may not exceed $7,500 for miles commuted and $500 for tolls paid.
summary
This bill provides an income tax credit for an individual with a round-trip commute of at least 50 miles between the individual's primary residence and primary place of employment. The credit is equal to 25¢ per mile plus tolls. The credit does not apply to miles or tolls for which the individual claims a deduction from federal income tax or if the individual is compensated by the employer.