§5216-B. Seed capital investment tax credit
1. Definitions. As used in this section, unless the context indicates otherwise, the following terms have the following meanings.
A. "Certificate" means a tax credit certificate issued by the Finance Authority of Maine pursuant to Title 10, chapter 110, subchapter IX. [PL 1987, c. 854, §§4, 5 (NEW).]
B. "Investment" means an investment for which a certificate has been received. [PL 1987, c. 854, §§4, 5 (NEW).]
C. "Investor" means a taxpayer or private venture capital fund that has received a certificate. [PL 2011, c. 454, §14 (AMD).]
D. "Private venture capital fund” has the same meaning as under Title 10, section 1100‑T, subsection 1‑A. [PL 2011, c. 454, §15 (NEW).]
[PL 2011, c. 454, §§14, 15 (AMD).]
2. Credit. An investor is entitled to a credit against the tax otherwise due under this Part equal to the amount of the tax credit certificate issued by the Finance Authority of Maine in accordance with Title 10, section 1100‑T and as limited by this section. Except with respect to tax credit certificates issued under Title 10, section 1100‑T, subsection 2‑C, in the case of partnerships, limited liability companies, S corporations, nontaxable trusts and any other entities that are treated as flow-through entities for tax purposes under the Code, the individual partners, members, stockholders, beneficiaries or equity owners of such entities must be treated as the investors under this section and are allowed a credit against the tax otherwise due from them under this Part in proportion to their respective interests in those partnerships, limited liability companies, S corporations, trusts or other flow-through entities. Except as limited or authorized by subsection 3 or 4, 25% of the credit must be taken in the taxable year in which the investment is made and 25% per year must be taken in each of the next 3 taxable years. With respect to tax credit certificates issued under Title 10, section 1100‑T, subsection 2‑C, the credits are refundable and the investor shall file a return requesting a refund for an investment for which it has received a tax credit certificate in the calendar year following the calendar year during which the investment was made.
[PL 2017, c. 170, Pt. E, §3 (AMD).]
3. Limitation. With respect to tax credit certificates issued under Title 10, section 1100‑T, subsection 2 or 2‑A, the amount of the credit allowed under this section for any one taxable year may not exceed 50% of the tax imposed by this Part on the investor for the taxable year before application of the credit.
[PL 2011, c. 454, §17 (AMD).]
4. Carry forward. Credits not taken because of the limitation in subsection 3 shall be taken in the next taxable year in which the credit may be taken, provided that the limitation of subsection 3 shall also apply to the carry-forward years. In no case may this carry-forward period exceed 15 years.
[PL 1987, c. 854, §§4, 5 (NEW).]
5. Recapture. In the event that the Finance Authority of Maine revokes a certificate, there must be added to the tax imposed on the investor under this Part for the taxable year in which the revocation occurs an amount equal to the total amount of credit authorized and revoked minus the amount of credit not yet taken.
[PL 2011, c. 454, §18 (AMD).]
6. Evaluation; specific public policy objective; performance measures. The credit provided under this section is subject to ongoing legislative review in accordance with Title 3, chapter 37. The Office of Program Evaluation and Government Accountability shall submit an evaluation of the credit provided under this section to the joint legislative committee established to oversee program evaluation and government accountability matters and the joint standing committee of the Legislature having jurisdiction over taxation matters. In developing evaluation parameters to perform the review, the office shall consider:
A. That the specific public policy objectives of the credit provided under this section are:
(1) To increase job opportunities for residents of the State in businesses that export products or services from the State;
(2) To increase private investment in small new and existing businesses, especially those that experience significant difficulty in the absence of investment incentives in obtaining equity financing to carry the businesses from start-up through initial development; and
(3) To increase municipal tax bases; and [PL 2019, c. 616, Pt. LL, §12 (NEW).]
B. Performance measures, including, but not limited to:
(1) The number and geographic distribution of full-time employees added or retained during a period being reviewed who would not have been added or retained in the absence of the credit;
(2) The amount of qualified investment in eligible businesses during the period being reviewed;
(3) The change in the number of businesses created or retained in the State as a result of the credit;
(4) Measures of fiscal impact and overall economic impact to the State; and
(5) The amount of the tax revenue loss for each year being reviewed divided by the number of jobs created or retained. [PL 2019, c. 616, Pt. LL, §12 (NEW).]
[PL 2019, c. 616, Pt. LL, §12 (NEW).]
SECTION HISTORY
PL 1987, c. 854, §§4,5 (NEW). PL 1999, c. 752, §4 (AMD). PL 2001, c. 446, §4 (AMD). PL 2001, c. 446, §6 (AFF). PL 2001, c. 642, §11 (AMD). PL 2001, c. 642, §12 (AFF). PL 2003, c. 20, §X6 (AMD). PL 2003, c. 451, §E8 (AMD). PL 2011, c. 454, §§14-18 (AMD). PL 2013, c. 438, §6 (AMD). PL 2015, c. 300, Pt. A, §41 (AMD). PL 2017, c. 170, Pt. E, §3 (AMD). PL 2019, c. 616, Pt. LL, §12 (AMD).
Structure Maine Revised Statutes
36 §5213. New jobs credit (REPEALED)
36 §5213-A. Sales tax fairness credit
36 §5214. Legislative findings and purpose (REPEALED)
36 §5214-A. Credit to beneficiary for accumulation distribution
36 §5215. Jobs and investment tax credit
36 §5216-A. Credit for investment in the Maine Natural Resource Capital Company (REPEALED)
36 §5216-B. Seed capital investment tax credit
36 §5216-C. Contributions to family development account reserve funds (REPEALED)
36 §5216-D. Maine Fishery Infrastructure Investment Tax Credit Program (REPEALED)
36 §5217. Employer-assisted day care
36 §5217-A. Income tax paid to other taxing jurisdiction
36 §5217-B. Employer-provided long-term care benefits (REPEALED)
36 §5217-C. Employer-provided long-term care benefits on and after January 1, 2000
36 §5217-D. Credit for educational opportunity
36 §5217-E. Student Loan Repayment Tax Credit
36 §5218. Income tax credit for child care expenses
36 §5218-A. Income tax credit for adult dependent care expenses
36 §5219. Income tax credit for installation of renewable energy systems (REPEALED)
36 §5219-A. Retirement and disability credit (REPEALED)
36 §5219-B. Conformity credit (REPEALED)
36 §5219-C. Forest management planning income credits (REPEALED)
36 §5219-D. Solid waste reduction investment tax credit (REPEALED)
36 §5219-E. Investment tax credit (REPEALED)
36 §5219-F. Reclaimed wood waste and cedar waste credit (REPEALED)
36 §5219-H. Application of credits against taxes
36 §5219-I. Nursing home care credit (REPEALED)
36 §5219-J. Catastrophic health expense credit (REPEALED)
36 §5219-K. Research expense tax credit
36 §5219-L. Super credit for substantially increased research and development
36 §5219-M. High-technology investment tax credit
36 §5219-N. Low-income tax credit (REPEALED)
36 §5219-O. Credit for dependent health benefits paid
36 §5219-P. Clean fuel vehicle economic and infrastructure development (REPEALED)
36 §5219-Q. Quality child care investment credit
36 §5219-S. Earned income credit
36 §5219-U. Educational attainment investment tax credit (REPEALED)
36 §5219-V. Recruitment credit (REPEALED)
36 §5219-W. Pine Tree Development Zone tax credit
36 §5219-X. Biofuel commercial production and commercial use
36 §5219-Y. Certified visual media production credit
36 §5219-Z. Tax credit for pollution-reducing boilers (REPEALED)
36 §5219-AA. Community wind power generator credit (REPEALED)
36 §5219-BB. Credit for rehabilitation of historic properties after 2007
36 §5219-CC. Community wind power generator credit (REPEALED)
36 §5219-FF. Credit for wellness programs
36 §5219-GG. Maine capital investment credit
36 §5219-HH. New markets capital investment credit
36 §5219-II. Property tax fairness credit
36 §5219-JJ. Maine capital investment credit for 2013 (REALLOCATED FROM TITLE 36, SECTION 5219-II)
36 §5219-KK. Property tax fairness credit for tax years beginning on or after January 1, 2014
36 §5219-LL. Primary care access credit (REALLOCATED FROM TITLE 36, SECTION 5219-KK)
36 §5219-MM. Maine capital investment credit for 2014
36 §5219-NN. Maine capital investment credit for 2015 and after
36 §5219-OO. Credit for disability income protection plans in the workplace
36 §5219-PP. Credit for certain homestead modifications
36 §5219-QQ. Credit for major business headquarters expansions
36 §5219-RR. Tax credit for Maine shipbuilding facility investment
36 §5219-SS. Dependent exemption tax credit
36 §5219-UU. Employer credit for family and medical leave
36 §5219-VV. Credit for major food processing and manufacturing facility expansion
36 §5219-WW. Credit for affordable housing
36 §5219-XX. Renewable chemicals tax credit
36 §5219-YY. Credit for paper manufacturing facility investment
36 §5219-ZZ. Access to justice credit (REALLOCATED FROM TITLE 36, SECTION 5219-YY)