Maine Seed Capital Tax Credit Program Expanded by $10 Million
Under a newly enacted law (PL 2020, Ch. 616), tax credit authority for 2020 has been expanded from $5 million dollars to $15 million for the calendar year. Having already awarded $5 million in credits on January 2, 2020, FAME now has the authority to issue up to $10 million in tax credits under the program
for eligible investments made in eligible companies ON OR AFTER April 1, 2020
. Investments made prior to April 1, 2020 are not eligible, and credits already issued in 2020 for investments made on or about January 2, 2020 will not be adjusted.
Other Important Changes
The new legislation made additional program changes, effective April 1, 2020:
- Credits are now authorized at 40% (down from 50%) of eligible investment;
- The maximum cumulative qualified investment in each company was reduced to $3.5 million dollars (down from $5 million).
- There is now a limit of qualified investment in any one company in any one year of $2 million dollars.
The limits set forth in #2 and #3 above will be applied commencing with applications received on or after April 1, 2020, and
will count all investments already made in companies, both cumulatively and earlier in 2020.
FAME began processing applications on April 1, 2020. While the application forms are the same (and
available on our website
),
we have changed our process to comply with current COVID-19 prevention measures. For more in-depth program information, including application forms and updated application instructions, please visit our
Maine Seed Capital Tax Credit Program page.
