An Act To Expand The Dependent Exemption Tax Credit

This bill (LD 1294) expands Maine's dependent exemption tax credit for tax years beginning January 1, 2025, or later. It doubles the credit to $600 for each dependent under age 6 (up from $300) while maintaining a $300 credit for dependents age 6 and older. The bill also updates income-based phase-out rules, reducing the credit for higher earners based on filing status (e.g., $100,000 threshold for single filers). It directly affects Maine resident taxpayers claiming dependents who qualify for the federal child tax credit or personal exemption. The changes apply to tax returns filed for 2025 and subsequent years.