In 2020, the federal government expanded the child tax credit to help ease the burden on families during the pandemic. While voting to extend it for a couple of years, Congress did not renew this for the 2023 tax year.
With rising inflation and many families struggling to make ends meet, it’s crucial that our state government step in to help where it can. A new bill introduced to the Legislature will do just that.
LD 1544, An Act to Improve Economic Security for Maine Children by Establishing the Maine Dependent Tax Credit, would create a new, statewide child tax credit to replace the current tax exemption.
This credit would:
Be available for a taxpayer with a dependant who has lived with them for at least 6 months of the tax year, or who was born during the tax year, and for whom the taxpayer has provided more than 50 percent of that dependent's financial support during the tax year;
Be fully refundable (unlike the federal tax credit) and may not be counted as income, an asset, or a resource for purposes of state or municipal benefits;
Be adjusted each year for inflation, with the 2023 credit resting at $350 for each dependent.
This bill is an important step forward in ensuring that Maine’s taxpayers have the support they need to help raise and feed their families. We encourage the Legislature to pass this bill!