Maine closer to expanding income tax credit for workers

AUGUSTA, Maine (AP) - Maine residents are a step closer to seeing the expansion of a tax credit designed to help workers.

A committee of the Maine Legislature has passed a bill proposed by Democratic Sen. Eloise Vitelli, of Arrowsic, that would expand the credit from 5% to 23% of the federal earned income tax credit. The proposal would also make other tweaks, such as adding students and some caregivers to the list of people who are eligible for the credit at a reduced amount.

The bill has drawn support from Maine People’s Alliance, which says that expanding the earned income tax credit is a wise move for the state’s working people.

The proposal faces more votes.

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This story has been corrected by removing an erroneous reference to the Maine Heritage Policy Center supporting the bill.