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Maine Revenue Services made a few changes for the 2020 tax year.
The Maine earned income credit was increased from 5% to 12% of the federal earned income credit for taxpayers with a qualifying child, and increased to 25% for taxpayers without a qualifying child. Additionally, eligibility has been expanded to include taxpayers who are age 18 to 24, have no qualifying children, and who are otherwise qualified for the federal earned income credit.
Two new income subtractions were added. The first is a subtraction for earnings on funds held in an ABLE savings account. The second is a subtraction for student loan payments made by an employer on behalf of a qualified health care employee, if made directly to the lender and included in the employee's federal adjusted gross income.
Two new income additions were added. The first is an addition for excess business losses for noncorporate taxpayers. The second is an addition for business interest deduction exceeding 30% of federal adjusted taxable income.
Maine also added a new voluntary contribution to Schedule CP for the Maine Children's Cancer Research Fund.
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