Tax credit program for Maine investors and businesses has availability — but time is running out
A tax incentive program administered by the Finance Authority of Maine in conjunction with Maine Revenue Services still has capacity for this year, but time is running out for interested investors.
The Maine Seed Capital Tax Credit Program has $7 million in tax credit authority available for use by investors and Maine businesses for the remainder of calendar year 2020.
“Many Maine businesses have grown and thrived through this program,” said FAME CEO Bruce Wagner. “Thousands of Maine jobs have been created and retained in part due to the Seed Capital Tax Credit, and it has spurred millions in investments in Maine businesses over the years. We encourage interested investors and businesses to consider utilizing the remaining credit availability before it expires on December 31.”
Last winter, the Maine Legislature and Gov. Janet Mills approved an increase in funding for the program, boosting the annual program limits from $5 million per year to $15 million per year. The legislation also made other changes to the program that are designed to make funding available to more Maine companies.
The Maine Seed Capital Tax Credit Program, administered by FAME in conjunction with Maine Revenue Services, 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 or refundable tax credits to investors for 40% of the cash equity they provide to eligible Maine businesses. Investments may be used for fixed assets, research or working capital. The program reduces the risk of a Maine investment, encouraging investors to commit capital to Maine companies that might otherwise be invested outside the state.
For more information about the program, contact FAME at (207) 623-3263 or visit its website.
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