A proposal that would provide state income-tax credits to offset student loans to graduates of Maine colleges or universities who stay and work in the state will appear on the statewide ballot – unless the Legislature opts to pass it first.
Secretary of State Matt Dunlap confirmed Monday that the organization promoting the plan, Opportunity Maine, had collected 63,285 signatures, 8,197 more than the required number.
Legislators will have a chance to pass the Act to Allow a Tax Credit for College Loan Repayments, and if they don’t, the proposal will go out to the voters either in a special election or as a question on the Nov. 6 ballot.
The amount eligible for tax credits would be capped at the cost of tuition and fees for the University of Maine System or the Maine Community College System, but could be applied to loans for more expensive private colleges in the state. Maine residents earning an associate or bachelor’s degree at a Maine school and having a student loan are eligible, if they continue to live and work in Maine after graduation. The proposal also would allow the graduates’ employers to claim the tax credits if they pay the student loan.
While the program is expected to cost the state several million dollars annually in the beginning, proponents say it will eventually make the state money by providing a better skilled workforce to fuel economic development.
Sen. Dennis Damon, D-Hancock County, who submitted legislation last year that mirrors the referendum proposal, said the Legislature should pass the plan this session without requiring a statewide vote.
“I sincerely applaud their efforts, but I am optimistic that their measure will not be necessary,” Damon said. “Last summer I submitted legislation that will accomplish the exact same goals as their measure – provide a real incentive for our Maine students to stay and find employment within our state and ultimately put a plug in the ‘brain drain.'”
If the proposal goes to referendum, the question on the ballot would read: “Do you want to allow a tax credit for college loan repayments to any taxpayer who earns a future college degree in Maine and continues to live and work in Maine?”
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