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Katie Shorey of Live + Work in Maine
Updated: March 7, 2025
Commentary
Beyond tax season: Making the most of Maine incentives
By Katie Shorey, Live + Work in Maine
As we head into tax season, let's not forget some of the tax programs we already have in place. These incentives and programs are unique and give Maine a competitive edge.
For businesses and individuals considering Maine as a place to work, live and invest, our state offers tax benefits that serve as powerful recruitment and retention tools. In an era where workforce attraction is top of mind for employers, these programs provide an opportunity to highlight Maine’s commitment to supporting talent and economic growth. Yet, they need to be promoted more broadly.
Here are four tax incentives that can serve as a magnet for talent and business development in Maine.
Student loan repayment
Maine has taken a proactive approach to alleviating student debt, a major financial burden for young professionals. This program helps qualifying graduates who live and work in Maine receive tax credits to offset student loan payments. By promoting this benefit more effectively, employers and economic development leaders can position Maine as a debt-friendly destination for educated workers looking to put down roots. The tax credit has been expanded and simplified in recent years, and the 2024 worksheet is available now.
College savings grant
Investing in education doesn’t stop at student loan repayment. The Harold Alfond NextGen 529 provides a $500 grant to every baby born in Maine to jumpstart college savings. For employers looking to attract family-oriented professionals, highlighting Maine’s long-term commitment to education and financial planning can be a differentiating factor when recruiting talent.
Business incentives
This newly established program is designed to support both workforce development and business expansion in Maine. By offering financial incentives for employee training and capital investment, the Dirigo Business Incentive helps companies grow while ensuring workers have access to high-quality jobs. As businesses seek locations that provide strong support for workforce development, Maine can market this program as a key advantage.
Tax credit on seed capital
For entrepreneurs and investors, Maine’s Seed Capital Tax Credit provides a compelling reason to start and fund businesses in the state. By offering a tax credit of up to 40% on qualified investments in Maine-based businesses, this program fuels economic development and innovation. Increased awareness and streamlined access to this incentive could attract more startup activity and venture capital to Maine.
The path forward
While these incentives are already in place, greater visibility and promotion are needed to maximize their impact.
Employers, policymakers and economic development leaders can work together to ensure these programs are front and center in recruitment efforts.
By leveraging these tax programs as part of a broader talent attraction strategy, Maine can strengthen its position as a destination for skilled professionals and businesses looking to grow. With tax season upon us, now is the time to double down on making these benefits known.
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