EARNED INCOME TAX CREDIT (EITC)

Rate (Fully-Refundable): 50% of the federal credit for workers without dependent children, 25% of the federal credit for all other eligible workers

Eligibility Requirements: All Maine taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action: In 2022, state legislature passed LD 1995, increasing the value of the state EITC from 12% to 25%, and expanding the state EITC to 50% of the federal rate for workers without dependent children.

• In June 2019, the Maine Legislature passed LD 1671, a bill to expand the state’s EITC from 5 to 12 percent of the federal credit, expand the state’s EITC for workers without dependent children to 25 percent of the federal credit, and lower the minimum age of eligibility from 25 to 18.

CHILD TAX CREDIT (CTC)

Rate (Fully-Refundable): $300 per qualifying dependent, adjusted annually for inflation starting 2025 ²

Eligibility Requirements: All Maine taxpayers who qualify for teh federal credit are automatically eligible.

Latest Legislative Action: In 2023, Gov. Janet T. Mills signed LD258, a bill that made the state CTC refundable and indexed the tax credit to inflation beginning 2025.²

• In 2018, Maine established a non-refundable state CTC valued at $300 per qualifying child and dependent. Taxpayers who qualified for the federal credit automatically qualified for the state CTC.
• Lawmakers proposed a bill to create a state-level CTC that matches the federal credit at $2,000 per eligible child. The legislation will be considered further in the 2018 session.

Notes: Called the Dependent Exemption Tax Credit.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rates:¹

• Refundable: 25% of federal credit up to $500
• Non-Refundable: 25% of federal credit above $500
• Rate increases to 50% of federal credit if child attends a quality child care facility certified through the Maine Department of Health and Human Services.

Eligibility Requirements: All Maine taxpayers who qualify for the federal CDCTC are automatically eligible.