18-125 C.M.R. ch. 812 — Rule 812. Credit for Educational Opportunity

18
DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125
BUREAU OF REVENUE SERVICES
INCOME/ESTATE TAX DIVISION
Chapter 812: CREDIT FOR EDUCATIONAL OPPORTUNITY
SUMMARY: This rule explains in further detail the Maine income tax credit for educational
opportunity pursuant to 36 M.R.S. § 5217-D and defines certain terms used in the statute,
including "science, technology, engineering or mathematics" (STEM), for tax years beginning on
or after January 1, 2014, but before January 1, 2022.
Outline of Contents:
.01
General qualifications
.02
Credit refundability
.03
STEM - Definition applicable to degrees awarded prior to January 1, 2020
.04
STEM - Definition applicable to degrees awarded on or after January 1, 2020
.05
Bachelor's and graduate degrees awarded simultaneously
.06
Credit allowed in the event of forbearance or deferment
.07
Regional accrediting association
.08
Application
.01
General qualifications
A taxpayer who is a qualified individual or the employer of a qualified individual under
36 M.R.S. § 5217-D may claim the Maine income tax credit for educational opportunity for
certain educational loan payments related to the award of certain associate, bachelor's, or
graduate degrees.
.02
Credit refundability
The credit allowed to a qualified individual is refundable if the credit is based on loans
included in the financial aid package acquired to obtain (1) for tax years beginning on or after
January 1, 2013, an associate degree or bachelor's degree in STEM, or (2) for tax years
beginning on or after January 1, 2016, an associate degree in any field of study. See 36 M.R.S. §
5217-D(3).
.03
STEM - Definition applicable to degrees awarded prior to January 1, 2020
A.
For degrees awarded prior to January 1, 2020, a STEM degree means an associate
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or bachelor's degree with a major (or if no major is awarded, an equivalent
concentration) as recognized by the participant's accredited community college,
college, or university limited to the following courses of study:
1.
Animal, food, or plant science; archeology; biology; chemistry; computer
and information sciences; environmental science; physics/physical, earth,
or marine sciences; or registered nursing/nursing sciences;
2.
Aeronautical engineering; architectural engineering technology;
biotechnology; clinical or medical technologies; communications
technology; computer technology; construction engineering technology;
drafting and design technology; automotive technology; electrical and
electrical engineering technology; electromechanical engineering
technology; science technology; or telecommunications technology;
3.
Chemical, civil, construction, electrical, forest, industrial, mechanical,
naval, or surveying engineering;
4.
Economics, mathematics, or statistics; or
5.
Any degree listed on the United States Department of Homeland Security,
Immigration and Customs Enforcement STEM Designated Degree
Program List.
B.
Any degree awarded prior to January 1, 2020, that is considered a STEM degree
pursuant to this section will continue to qualify for STEM-degree treatment after
December 31, 2019, regardless of whether the taxpayer had previously treated the
degree as a STEM degree.
.04
STEM - Definition applicable to degrees awarded on or after January 1, 2020
For degrees awarded on or after January 1, 2020, a STEM degree means a degree in a
program of study classified under one of the following Classification of Instructional Programs
(CIP) codes according to the Integrated Postsecondary Education Data System (IPEDS) of the
National Center for Education Statistics (NCES):
A.
CIP codes listed on the United States Department of Homeland Security,
Immigration and Customs Enforcement STEM Designated Degree Program List
as of the year in which the degree was awarded;
B.
Dental Hygiene/Hygienist (CIP code 51.0602);
C.
Kinesiology and Exercise Science (CIP code 31.0505);
D.
Marine Science/Merchant Marine Officer (CIP code 49.0309);
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E.
Occupational Therapy/Therapist (CIP code 51.2306)
F.
Registered Nursing, Nursing Administration, Nursing Research, and Clinical
Nursing (CIP codes 51.3801 through 51.3899); and
G.
Secondary Education and Teaching: STEM Concentrations (CIP code 13.1205
with a concentration in a field that would qualify as a STEM degree under
subsections A through F if the degree were earned in that field directly).
.05
Bachelor's and graduate degrees awarded simultaneously
In the case of a bachelor's degree and a graduate degree awarded simultaneously, the
eligible loan payments made during the taxable year for tuition and fees associated with courses
taken to acquire the degrees must be apportioned between the degrees using the proration method
specified in this section. The proration method is used (1) to apportion amounts due and amounts
paid between two separate qualifying degrees for the purpose of claiming each individual credit,
and (2) to remove amounts due or amounts paid on loans associated with a nonqualifying
degree. Tuition and fees of a course that could reasonably be apportioned to either of the degrees
must be apportioned to one degree or the other. For each degree, the proration is a fraction, the
numerator of which is the tuition and fees of the courses taken to acquire that degree and the
denominator of which is the total tuition and fees of the courses taken to obtain both
degrees. The combined tuition and fees apportioned to each degree may not exceed the total
tuition and fees to obtain both degrees.
.06
Credit allowed in the event of forbearance or deferment
For tax years beginning on or after January 1, 2020, the payment amount considered due
for purposes of 36 M.R.S. § 5217-D(2)(B) for any month of the taxable year in which the
qualified individual's or qualified employee's required student loan payment is suspended due to
forbearance or deferment is equal to the student loan payment amount that would be due but for
forbearance or deferment, as established by supporting documentation provided to the Assessor
that establishes that amount.
A.
Variable Payment Amount. For loans with a payment amount due that varies
from month to month, the monthly payment amount considered due during
forbearance or deferment is calculated using the average student loan payment
due during the months of the taxable year in which the loans were not in
forbearance or deferment. If the loans were in forbearance or deferment for the
entire taxable year and the amount otherwise due is not known, the monthly
payment amount considered due during forbearance or deferment is equal to the
benchmark loan payment as determined under 36 M.R.S. § 5217-D(1)(A).
B.
Payment Amount Unknown. If the taxpayer does not establish the student loan
payment amount that would be due but for forbearance or deferment by providing
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sufficient supporting documentation to the Assessor, the monthly payment
amount considered due during forbearance or deferment is equal to the
benchmark loan payment as determined under 36 M.R.S. § 5217-D(1)(A).
.07
Regional accrediting association
For purposes of 36 M.R.S. § 5217-D, a regional accrediting association is either (1) any
of the United States accrediting associations/commissions that comprise the Council of Regional
Accrediting Commissions, or (2) an equivalent non-United States accrediting association,
commission, or government entity that is a reliable authority on the quality of the education or
training provided by the institutions of higher education it accredits or charters and that applies
standards substantially equivalent to those utilized by the associations/commissions that
comprise the Council of Regional Accrediting Commissions.
.08
Application
Except where otherwise stated, this rule applies to income tax years beginning on or after
January 1, 2014 and before January 1, 2022.
STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 5217-D
EFFECTIVE DATE:
April 22, 2013 - filing 2013-102
AMENDED:
May 27, 2015 - filing 2015-099
January 28, 2021 - filing 2021-027
May 3, 2023 - filing 2023-066