06 Income tax credits

Most income tax credits available to a resident individual are also available to a nonresident individual; however, personal income tax credits, such as the credit for child care expenses (36 M.R.S. § 5218) and the retirement and disability credit (36 M.R.S. § 5219-A), must be prorated based upon the ratio of the taxpayer’s Maine-source income to entire federal adjusted gross income as modified by 36 M.R.S. § 5122. The total amount of income tax credits based upon a business being operated in Maine by the nonresident taxpayer (business credits) may be claimed without proration, subject to the limitations contained in the statute for the credit or credits involved. (See 36 M.R.S., Chapter 822.)