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 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.

In 2022, state legislature increased the value of the state EITC from 12 to 25 percent, and expanded the state EITC to 50 percent of the federal rate for workers without dependent children.

CHILD TAX CREDIT (CTC)

Maine does not currently offer a state-level CTC.

Latest Legislative Action: 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.

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.