Twenty-five states and the District of Columbia have enacted their own state version of the Earned Income Tax Credit (EITC). Maine is among those who model their state credit after the federal version, in terms of eligibility requirements. Taxpayers can determine their eligibility for the Maine state EITC the same as they do for the federal credit, meaning a family who was able to claim the federal credit will likely qualify for the state as well.
Maine's EITC is offered at 5% of the federal credit, and Is one of only four states with EITCs to not offer refundability. In Maine, the EITC is non-refundable, so while a working family can use the EITC to reduce their state income tax, they cannot apply it to other significant taxes or receive the excess credit back as a refund.
While the EITC in Maine may not be refundable, it can make the tax burden on a low income family a little less difficult to bear.