An Act to Expand the Dependent Exemption Tax Credit

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132nd MAINE LEGISLATURE
FIRST SPECIAL SESSION-2025
Legislative Document No. 1294
S.P. 524 In Senate, March 25, 2025
An Act to Expand the Dependent Exemption Tax Credit
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President DAUGHTRY of Cumberland.
Cosponsored by Representative GATTINE of Westbrook and
Senators: DUSON of Cumberland, LIBBY of Cumberland, MOORE of Washington, PIERCE
of Cumberland, RENY of Lincoln, TIPPING of Penobscot, Representative: GRAMLICH of
Old Orchard Beach.

Page 1 - 132LR1681(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 36 MRSA §5219-SS, sub-§1, as amended by PL 2023, c. 412, Pt. ZZZ, §6,
3 is further amended to read:
41. Resident taxpayer; tax years beginning before 2026 2025. For tax years
5 beginning on or after January 1, 2018 and before January 1, 2026 2025, a resident
6 individual is allowed a credit against the tax otherwise due under this Part equal to $300
7 for each qualifying child and dependent of the taxpayer for whom the taxpayer was eligible
8 to claim the federal child tax credit pursuant to the Code, Section 24 for the same taxable
9 year.
10Sec. 2. 36 MRSA §5219-SS, sub-§1-A, as enacted by PL 2023, c. 412, Pt. ZZZ,
11 §6, is amended to read:
121-A. Resident taxpayer; tax years beginning 2026 2025 or after. For tax years
13 beginning on or after January 1, 2026 2025, a resident individual is allowed a credit against
14 the tax otherwise due under this Part equal to $300 for each dependent of the taxpayer for
15 whom the taxpayer was eligible to claim the federal personal exemption pursuant to the
16 Code, Section 151 in an amount greater than $0 for the same taxable year. in the following
17 amounts:
18 A. $300 for each dependent of the taxpayer who is 6 years of age or older; and
19 B. $600 for each dependent of the taxpayer who has not attained 6 years of age before
20 the close of the taxable year.
21Sec. 3. 36 MRSA §5219-SS, sub-§4, as amended by PL 2023, c. 412, Pt. ZZZ, §6,
22 is further amended to read:
234. Refundability; phase-out. For tax years beginning before January 1, 2024, the
24 credit allowed by this section may not reduce the tax otherwise due under this Part to less
25 than zero. For tax years beginning on or after January 1, 2024, the credit allowed under
26 subsections 1, 1‑A, 3 and 3‑A is refundable. The For the tax year beginning on January 1,
27 2024, the amount of the credit allowed by this section must be reduced, but not below zero,
28 by $7.50 for each $1,000 or fraction thereof by which the taxpayer's Maine adjusted gross
29 income exceeds $400,000 in the case of a joint return and $200,000 in any other case. For
30 tax years beginning on or after January 1, 2025, the amount of the credit allowed by this
31 section must be reduced, but not below zero, by $20 for each $500 or fraction thereof by
32 which the taxpayer's Maine adjusted gross income exceeds:
33 A. For a single individual or a married individual filing a separate return, $100,000;
34 B. For an individual filing as a head of household, $125,000; and
35 C. For individuals filing married joint returns or surviving spouses, $150,000.
36SUMMARY
37 This bill expands the dependent exemption tax credit for tax years beginning on or after
38 January 1, 2025 by doubling the credit to $600 for each dependent who has not attained 6
39 years of age before the close of the taxable year. It also amends the phase-out provisions
40 based on the filer's status.
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