Vitelli bill to improve tax credit for working Mainers passes Committee

Posted: May 23, 2019 | Senator Vitelli

A bill introduced by Sen. Eloise Vitelli, D-Arrowsic, would expand and improve a longstanding tax credit for Maine workers. LD 104, “An Act To Expand the Earned Income Tax Credit in Maine,” was supported in a nearly unanimous, bipartisan 10-1 vote in the Legislature’s Taxation Committee on Wednesday.

“We know, from surveys of Maine tax filers and from national research, that EITC money is spent locally on home or car repairs, school costs and other family necessities, while some is set aside as savings. By modernizing and expanding the EITC, we’ll help more working Mainers and bring more money into Maine’s economy,” said Sen. Vitelli. “I’m glad to gain such strong support in the Committee for modernizing and expanding the EITC.”

As amended, LD 104 would expand the earned income tax credit, or EITC, by:

  • Increasing the credit from 5 percent to 23 percent of the federal earned income tax credit;
  • Extending the credit to adults age 18 to 24 who don’t have a child;
  • Increasing the credit for all childless adults;
  • Adding students and eligible caregivers as eligible for the credit at a reduced amount; and
  • Raising the income levels for eligibility.

The bill also would direct the Department of Labor to provide employers with a poster or notice so that they can let employees know they may be eligible for the EITC.

LD 104 will now be subject to further votes in the Maine Senate and House.