Maine offers several tax credits that may reduce your tax liability or increase your refund.
Credit Automatically Calculated
Earned Income Tax Credit
Maine allows an Earned Income Tax Credit (EITC) based on the federal Earned Income Credit. For eligible taxpayers, the credit is refundable for Maine residents and prorated for part-year residents. If you qualify, the program calculates this credit automatically. See the Earned Income Tax Credit Worksheet included in the pdf copy of the Main Tax Return.
Credits Requiring Additional Information
The credits available in the program are listed below in the same order they appear in the Maine interview.
Child Care Credit
If you qualify for Maine's Child Care Credit, enter the required child care information in the Maine section of your return. This credit is not refundable for nonresident taxpayers. Resident and part-year resident taxpayers may qualify for a refundable credit of up to $500.
Credit for Child Care Expenses Worksheet (included with the Maine individual income tax return forms)
Credit for Taxes Paid to Another State
If you are a Maine resident and earned income that was taxed by another state, you may be eligible for a credit on your Maine return for taxes paid to that state. TaxSlayer automatically calculates the credit when a nonresident return for the other state is prepared. If you have a Maine part-year resident return, you may need to enter the requested information manually.
Maine Schedule A, Recapture, Credit, and Bonus Depreciation Worksheet
Adult Dependent Care Credit
Adult Dependent Care Credit Worksheet
Property Tax Fairness Credit
Eligible Maine taxpayers may qualify for a refundable Property Tax Fairness Credit. The maximum credit is generally $1,000, or $2,000 for taxpayers age 65 or older. Married taxpayers filing separate returns are not eligible to claim this credit.
Schedule PTFC/STFC, Property Tax Fairness Credit and Sales Tax Fairness Credit
Student Loan Repayment Tax Credit
Eligible taxpayers who made qualifying student loan payments may be able to claim the Student Loan Repayment Tax Credit. To determine your eligibility and calculate the credit, complete the Student Loan Repayment Tax Credit Worksheet by providing:
- The taxpayer claiming the credit
- The type of degree received
- The graduation date
- The state where the college or university is located
- The amount of eligible student loan payments made during the tax year
- Any unused Educational Opportunity Tax Credit carryforward amounts from 2014 through 2021 (leave blank if none)
Maine Seed Capital Credit
Taxpayers who receive certification for qualified investments in eligible Maine businesses may qualify for the Maine Seed Capital Credit.
To claim this credit, enter the credit amount from your Maine Seed Capital Investment Tax Credit Worksheet and upload a PDF copy of the credit certificate issued by the Finance Authority of Maine (FAME). Maine requires a copy of the credit certificate to be attached to the return.
The Maine Seed Capital Investment Tax Credit Worksheet is used to calculate the amount of Maine Seed Capital Investment Tax Credit that can be claimed on the return, track any carryforwards, and calculate any recapture amount if a FAME certificate has been revoked.
Research Expense Tax Credit
Businesses that incur qualified research expenses may be eligible for the Maine Research Expense Tax Credit. Information from the applicable credit certificate and supporting documentation is required when preparing the return.
To claim this credit, you must enter the credit amount and upload a PDF of the completed Research Expense Tax Credit Worksheet.
Pine Tree Development Zone Credit
Businesses that expanded operations in Maine and received certification through the Department of Economic and Community Development may qualify for a Pine Tree Development Zone Credit.
To claim this credit, you must enter the credit amount and upload a PDF of the completed Pine Tree Development Zone Credit Worksheet.
Credit for Rehabilitation of Historic Properties After 2007
Taxpayers with qualified rehabilitation expenditures for certified historic properties may be eligible for this credit. For tax years beginning on or after January 1, 2025, Maine increased the maximum credit available for qualifying projects and expanded certain benefits for eligible rural and affordable housing projects.
To claim this credit, you must enter the credit amount and upload a PDF of the Rehabilitation of Historic Properties After 2007 Worksheet.
How to Enter the Credit Information
Program Entry
Follow these steps in your Maine return:
- Maine State Return
- Select the three dots (Edit)
- Credits
Maine Forms and Instructions
- Form 1040ME, Schedule A, Adjustments to Tax
- Form 1040ME, Schedule A, Other Tax Credits Worksheet (for Lines 8 and 20)
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