Press Release
FOR IMMEDIATE RELEASE
Contact:
Tracy Coughlin
Email:
tcoughlin@mesfoundation.org
Title:
Phone:
Marketing Director
(207) 400-3005
Bipartisan Teamwork Helps Expand Student Debt Relief Measures in Maine
Portland, ME 4.15.16 – Governor Paul LePage and Democratic Senate Minority Leader, Senator Justin
Alfond, teamed up to create and pass another important debt relief and workforce initiative. The bill LD
1657, the Act To Simplify and Expand the Educational Opportunity Tax Credit (EOTC) was fully funded and
sent to the governor yesterday. The bill makes three key changes to the EOTC program, also commonly
referred to as Opportunity Maine.
First, it eliminates the transfer restriction for those that had earned more than 30 credits from a non-Maine
college or university. With the passage of LD 1657, the EOTC eligibility will be amended to allow a qualified
individual who earned a bachelor's or associate’s degree from an accredited Maine college or university to
be eligible for the EOTC regardless of the number of transfer credits they may have earned at a non-Maine
school. It also opens up the timeframe of when the transfer occurred. Previously, only students with
transfers after 2012 were eligible. This change expands the transfer eligibility to 2008 to match the general
program qualifications.
Another key change this bill addresses is eligibility of merchant mariners. Before this expansion, Maine
residents who were out to sea more than 3 months out of the year were ineligible. Now Mainers who are
employed at least part time in a position on a vessel at sea will qualify for the EOTC similar to those who are
stationed out of the state in service for the U.S. Armed Forces.
Lastly, the bill further encourages Maine businesses to pay student loan payments for their employees by
expanding the employer credit to include eligibility for graduate degrees earned by qualified employees and
by removing the principal cap relative to qualified employees. This provides additional leverage Maine
businesses can use to attract and retain highly skilled workers.
“I am proud that the Governor and I teamed up on the creation and passage of this bill,” noted Senator
Alfond. “We are both steadfast in our commitment and determination to address the serious workforce
development issues facing our State. The expansions in this bill are based specifically on feedback we
received from constituents who are anxious to qualify for the valuable student debt relief that the program
offers,” Alfond continued.
One of the boldest college affordability initiatives in the nation, the EOTC provides significant tax benefits to
Maine residents. Helping to reduce the burden of student loan debt, it offers an ambitious incentive for
individuals to stay, live, and work in Maine. As the program is currently structured, individuals who
graduated from a Maine college or university may qualify to receive state income tax credits on student loan
payments they have made. The savings are substantial, more than $4,500 in annual state income tax
credits for a bachelor’s degree and over $800 a year for an associate’s.
MORE
www.facebook.com/opportunitymaine | www.opportunitymaine.org | www.twitter.com/oppmaine
Complete details about the EOTC program can be found online at www.opportunitymaine.org. The site also
includes FAQs, helpful resource links, and a handy online tax credit estimator. This tool calculates the
amount of tax credit individuals may qualify for and can even be used to pre-populate and print the EOTC
worksheet, the form residents must submit with their state tax returns to apply for the credit.
Information on filing Maine state income taxes can be found at www.maine.gov/revenue.
Related Documents
Opportunity Maine flyer (PDF)
Educational Opportunity Tax Credit Worksheet for Resident Individuals (PDF)
Educational Opportunity Tax Credit Worksheet for Employers (PDF)
## END ##
www.facebook.com/opportunitymaine | www.opportunitymaine.org | www.twitter.com/oppmaine