Maine Quality Child-Care Investment Tax Credit Worksheet For Tax Year 2015 (Page 2 of 2) in pdf

2015

QUALITY CHILD-CARE INVESTMENT TAX CREDIT

WORKSHEET INSTRUCTIONS

A taxpayer that has made an investment during the tax year toward the goal of providing quality child-care services is

allowed a credit in an amount equal to the qualifying portion of expenditures paid or expenses incurred by the taxpayer for

certiﬁ ed investments in child-care services. For corporations, the qualifying portion is 30% of up to $30,000 of expenditures,

apportioned if the taxpayer is part of an afﬁ liated group engaged in a unitary business. For individual taxpayers that expend

at least $10,000 during the tax year, the qualifying portion is $1,000 each year for nine years and $11,000 in year ten. The

credit is limited to the income tax due, excluding minimum tax, but any excess can be carried over to the following year

or years until exhausted. For purposes of this credit, the term corporation includes partnerships, LLCs, S corporations,

ﬁ nancial institutions and trusts.

Quality child-care services is deﬁ ned as services provided at child-care sites that meet minimum licensing standards and are

accredited by an independent, nationally recognized program approved by the Department of Health and Human Services

(“DHHS”), Ofﬁ ce of Child Care and Head Start. The service provider must utilize recognized quality indicators for child-care

services approved by DHHS, Ofﬁ ce of Child Care and Head Start and include provisions for parent and client input, review

of the provider’s policies and procedures, program records and an on-site program review. Only investments certiﬁ ed by the

DHHS, Ofﬁ ce of Child Care and Head Start qualify for this credit. To obtain an application for certiﬁ cation and an explanation

of investments that qualify, go to: , or call DHHS at (207) 287-9300.

In the case of pass-through entities (such as partnerships, LLCs, S Corporations, and trusts), the partners, members,

shareholders, beneﬁ ciaries or other owners are allowed a credit in proportion to their respective interests in these entities.

SPECIFIC LINE INSTRUCTIONS

Please enter the taxpayer name and social security number (“SSN”) or employer identiﬁ cation number (“EIN”).

Line 1.

Enter the total amount of quality child-care investments certiﬁ ed by DHHS. For S corporation shareholders,

partners, LLC members, trusts and trust beneﬁ ciaries, enter the total certiﬁ ed investment of the pass-through

entity, then go to line 2 to calculate your percentage share. Sole proprietors may skip line 2 and go directly to

line 3.

Line 2.

For taxpayers that are C corporations, the investment subject to the credit is limited $30,000. For S corporation

shareholders, partners, LLC members, trusts and trust beneﬁ ciaries, the investment subject to the credit is

limited to your percentage interest of the total investment up to $30,000.

Line 3.

For C corporations, S corporation shareholders, partners, LLC members, trusts and trust beneﬁ ciaries, enter

30% of line 2. Taxpayers who are sole proprietors must make an investment of at least $10,000 to qualify for the

credit and the credit is limited to $1,000 each year for nine years and $11,000 in year ten. Sole proprietors that

have made a qualifying investment in any tax year 2006 through 2014, enter $1,000 on line 3. Sole proprietors

who made a qualiﬁ ed investment in 2005, enter $11,000 on this line.

Line 4.

Enter on line 4 the unused credit amounts from previous tax years. The amount of the credit that may be used

by a taxpayer for a taxable year may not exceed the amount of income tax otherwise due. Any unused credit

may be carried forward to the following year or years until exhausted.

Maine Quality Child-Care Investment Tax Credit Worksheet For Tax Year 2015 Page 2