Maine Tax Credits for Student Loan Repayment
Maine Student Loan Repayment Tax Credit for tax years beginning on or after January 1, 2022
The Student Loan Repayment Tax Credit provides an income tax credit for Maine resident taxpayers who are making eligible education loan payments on loans obtained to earn an undergraduate degree (associate or bachelor’s) or a graduate degree from an accredited college or university after 2007, and who, after graduation, have earned income and live and file taxes in Maine. Maine’s Student Loan Repayment Tax Credit replaces the Educational Opportunity Tax Credit that was in effect for Maine state income tax years 2008-2021. To qualify an individual must have obtained a degree after 2007, be a Maine resident during the tax year and have a minimum earned income specified for the tax year.
Maine Educational Opportunity Tax Credit for Maine State Income Tax Years 2008-2021
The Maine Educational Opportunity Tax Credit provides a state income tax credit for student loan payments made by graduates of Maine colleges who live, work, and pay taxes in Maine. Eligibility qualifications and criteria for the Maine Educational Opportunity Tax Credit vary depending on year of graduation.
Initially established by an act of the Maine State Legislature in 2007, the Opportunity Maine Program provides reimbursement of education-related loans through a tax credit available for qualified Maine taxpayers. The Maine Educational Opportunity Tax Credit applies only to loans associated with coursework completed after January 1, 2008. The tax credit is available for payments that graduates make on student loans, not payments made by parents on parent loans. To claim the tax credit, the taxpayer must be a Maine resident for the tax year.