The Maine dependent care state tax credit is equal to 25% of the federal credit for child and dependent care expenses. The credit doubles if the expenses are related to a quality child care provider. This credit is also refundable up to $500.
The Maine legislature passed a law that expands the income tax credit for child care expenses. A Maine taxpayer who enrolls a child in a child care center or home with a Quality Certificate is eligible for a double child care tax credit on their state income tax return. An individual is allowed a credit against the tax otherwise due in the amount of 25% of the federal tax credit allowable for child and dependent care. In the new law, this credit doubles in amount if the child care expenses were incurred through the use of programs with Quality Certificates. The credit may result in a refund of up to $500.
To qualify for the double tax credit, the number from the child care provider's Quality Certificate will need to be entered on a Maine State Income Tax Return. This is not the number on a child care license, but the 3 digit number on a Quality Certificate. Learn more about Quality Certificates.
Child and dependent care credit. 36 M.R.S. § 5218(4). For tax years beginning on or after January 1, 2016, the credit for child and dependentcare expenses is no longer refundable for nonresident taxpayers.