Maine Seed Capital Tax Credit Program (Maine)
Last modified on February 12, 2015.
|Applies to States or Provinces||Maine|
|Name||Maine Seed Capital Tax Credit Program (Maine)|
|Policy Category||Financial Incentive|
|Policy Type||Corporate Tax Incentive|
|Affected Technologies||Biomass/Biogas, Coal with CCS, Concentrating Solar Power, Energy Storage, Fuel Cells, Geothermal Electric, Hydroelectric, Hydroelectric (Small), Natural Gas, Nuclear, Solar Photovoltaics, Tidal Energy, Wave Energy, Wind energy|
|Program Administrator||Finance Authority of Maine (FAME)|
| Last Substantive Modification
This program is designed to encourage equity and near-equity investments in eligible Maine businesses, directly and through private venture capital funds. FAME may authorize state income tax credits to investors for up to 50% of the cash equity they provide to eligible Maine businesses. Investments may be used for fixed assets, research or working capital.
Eligibility Businesses located in Maine. Investors must own less than 50% of the business. Principal owners and their immediate relatives are not eligible. Annual gross sales of less than $5 million. Business must either: 1) be a manufacturer; 2) provide goods or services with 60% of sales derived from outside the state or to out-of-state residents; 3) develop or apply advanced technologies; 4) be a value added natural resource enterprise; 5) be certified as a visual media production company. Operating the business must be the professional, full-time activity of at least one of the principal owners.
Basic Terms Tax credits equal to 50% of the investment. An investor may provide up to $500,000 per business. Aggregate investment limit per business is $5 million for which tax credit may be received. Investments must be at risk for five years. Dividends, royalties, interest, stock options or warrants and other forms of return, which are not in the nature of return of principal, are allowed. Credits must be taken in increments of 25% (of the credit) per year commencing in the year of the investment. For investment not made through private venture capital funds, credits used cannot exceed 50% of the total tax due by the investor for that taxable year before application of the tax credit, and to the extent this limitation requires the taxpayer to take the credit over more than four years, unused credits may be carried forward no more than 15 years. For private venture capital funds, credits are refundable.
|Department||Finance Authority of Maine|
|Address||5 Community Drive, P.O Box 949, Augusta, ME|