USA Statutes : maine
Title : Title 36. TAXATION
Chapter : Chapter 822. TAX CREDITS
Title 36 - §5213. New jobs credit (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5213. New jobs credit (REPEALED)


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Title 36 - §5214-A. Credit to beneficiary for accumulation distribution

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5214-A. Credit to beneficiary for accumulation distribution

1. General. A beneficiary of a trust whose adjusted gross income includes all or part of an accumulation distribution by that trust, as defined in the Code, Section 665, or its equivalent, shall be allowed a credit against the tax otherwise due under this Part for all or a proportionate part of any tax paid by the trust under this Part for any preceding taxable year which would not have been payable if the trust had in fact made distribution to its beneficiaries at the times and in the amounts specified in the Code, Section 666, or its equivalent. [1987, c. 504, § 30 (amd).]


2. Limitation on credit. The credit under this section shall not reduce the tax otherwise due from the beneficiary under this Part to an amount less than would have been due if the accumulation distribution or his part of the accumulation distribution were excluded from his adjusted gross income. [1985, c. 783, § 36 (new).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5214. Legislative findings and purpose (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5214. Legislative findings and purpose (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5215. Jobs and investment tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5215. Jobs and investment tax credit

1. Credit allowed. A taxpayer, other than a public utility as defined by Title 35-A, section 102, is allowed a credit to be computed as provided in this section against the tax imposed by this Part, subject to the limitations contained in subsection 3. The amount of the credit equals the qualified federal credit, as defined in subsection 2, for taxable years beginning on or after January 1, 1979, except that a credit may be taken with respect to used property, and may not be allowed with respect to an excluded investment. [1997, c. 504, §14 (amd).]


2. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.



A. "Qualified federal credit" means, with respect to any taxable year, that portion of the credit allowed by the Internal Revenue Code of 1954, Section 38(b)(1), as of December 31, 1985, that is directly and solely attributable to qualified investment with a location in this State. [1997, c. 504, §15 (amd).]




A-1. "Excluded investment" means an investment related to a retail facility, unless the taxpayer can demonstrate to the satisfaction of the State Tax Assessor that the commercial result of the project or projects to which the credit relates has not or will not result in a substantial detriment to existing businesses in the State. [1993, c. 672, §1 (new); §2 (aff).]




A-2. "Retail facility" does not include a facility primarily engaged in warehousing, order taking, manufacturing, storage or distribution, even when a portion of the facility is used to make retail sales of tangible personal property directly from the facility. [1993, c. 672, §1 (new); §2 (aff).]




B. The term "new jobs credit base" means the excess of Bureau of Unemployment Compensation wages for the taxable year of the qualified investment or either of the next 2 calendar years over the Bureau of Unemployment Compensation wages for the highest of the 3 calendar years preceding the year of the qualified investment. In computing its new jobs credit base, a successor-taxpayer shall add to its own Bureau of Unemployment Compensation wages the Bureau of Unemployment Compensation wages of its predecessor. [1995, c. 560, Pt. G, §19 (amd).]




C. The term "Bureau of Unemployment Compensation wages" means the total amount of wages paid by an employer subject to tax under Title 26, section 1221, less any excesses attributable to statutory increases. [1995, c. 560, Pt. G, §20 (amd).]




D. "Successor-taxpayer" means a taxpayer that has acquired, within 4 years of its taxable year-end, the organization, trade or business, or 50% or more of the assets of the organization, trade or business, of another taxpayer that, at the time of the acquisition, was an employing unit. [1993, c. 672, §1 (amd); §2 (aff).]




E. "Used property" means property that is originally placed in service by the taxpayer outside of this State. The cost of property used by the taxpayer outside of this State and then placed into service in this State on or after January 1, 1997 is the original cost of the property to the taxpayer, minus the straight-line depreciation allowable for the tax years or portions of the tax years during which the taxpayer used the property outside of this State. The cost of property used by the taxpayer outside of this State and then placed into service in this State before to January 1, 1997 is the original cost of the property. [1997, c. 504, §16 (new).]

[1997, c. 504, §§15,16 (amd).]


3. Limitations. The tax credit for any taxable year is applicable only to those taxpayers:



A. With property considered to be qualified investment of at least $5,000,000 for that taxable year with a situs in the State and placed in service by the taxpayer after January 1, 1979; and [2003, c. 391, §7 (amd).]




B. With payroll records and reports substantiating that at least 100 new jobs attributable to the operation of property considered to be qualified investment were created in the 24-month period following the date the property was placed in service. To assess the continuing nature of the jobs, the taxpayer must demonstrate that the new jobs credit base is at least $700,000 for the taxable year of the qualified federal credit or for either of the next 2 calendar years. The $700,000 must be adjusted proportionally for any change in Title 26, section 1043, subsection 2 wages from $7,000. With respect to new jobs created after August 1, 1998, but before October 1, 2001, the employer must also demonstrate that the qualifying jobs are covered by a retirement program subject to the Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 101 to 1461, as amended; that group health insurance is provided for employees in those positions; and that the wages for those positions, calculated on a calendar year basis, are greater than the most recent average annual wage in the labor market area in which the employee is employed. [2003, c. 391, §8 (amd).]




C. [1999, c. 414, §46 (rp); §56 (aff).]

[2003, c. 391, §§7, 8 (amd).]


4. Carry-over. The amount of credit that may be used by a taxpayer for any taxable year may not exceed either $500,000 or the amount of tax otherwise due, whichever is less. Any unused credit may be carried over to the following year or years for a period not to exceed 7 years, including the year the credit was first taken, and may be deducted from the taxpayer's tax for that year or those years, subject to the same limitations provided in this subsection. [1993, c. 672, §1 (amd); §2 (aff).]


5. Carry-back. There may be no carry-back to prior years of the amount of credit allowable under this section. [1993, c. 672, §1 (amd); §2 (aff).]


6. Recapture. If, during any taxable year, any qualified investment property is disposed of, or otherwise ceases to be property covered by subsection 2, paragraph A with respect to the taxpayer, before the end of the useful life that was taken into account in computing the credit under subsection 1, then the tax under this Part for that taxable year must be increased by an amount equal to the aggregate decrease in the credit allowed under subsection 1 for all prior taxable years that would have resulted solely from substituting for the useful life, in determining qualified investment under the Internal Revenue Code, the period beginning with the time the property was placed in service by the taxpayer and ending with the time the property ceased to be property covered by subsection 2. [1993, c. 672, §1 (amd); §2 (aff).]


6-A. Affiliated groups; tax years prior to January 1, 1995. This subsection applies retroactively to all tax years beginning before the effective date of this subsection as well as prospectively to all tax years beginning on or after the effective date of this subsection but prior to January 1, 1995 and for which the taxpayer's right to file an original or amended return had not or has not expired at the time of the taxpayer's filing of the return. In the case of corporations that are members of an affiliated group engaged in a unitary business, the credit provided for in this section applies as follows.



A. The credit provided for in this section, in an amount equal to the aggregate qualified federal credit for all taxable corporations that are members of an affiliated group engaged in a unitary business, must be allowed against the total tax liability of all the taxable corporations that are members of the affiliated group engaged in a unitary business if the taxable corporations that are members of the affiliated group have, in the aggregate:

(1) Property considered to be qualified investment of at least $5,000,000 for that taxable year with a situs in the State and placed in service by the taxable corporations after January 1, 1979;


(2) Payroll records and reports substantiating that at least 200 new jobs attributable to the operation of property considered to be qualified investment were created in the 12-month period following the date the property was placed in service; and


(3) A new jobs credit base of at least $1,400,000 for the taxable year of the qualified federal credit or the next calendar year. The $1,400,000 must be adjusted proportionally for any change in Title 26, section 1043, subsection 2 wages from $7,000.
[1993, c. 672, §1 (new); §2 (aff).]




B. The amount of the credit that may be used in any taxable year may not exceed the lesser of $300,000 or the total amount of tax liability otherwise due of all taxable corporations that are members of an affiliated group engaged in a unitary business. Any unused credit may be carried over to the following year or years for a period not to exceed 7 years, including the year the credit was first taken, and may be deducted from the tax imposed by this Part for that year or those years, subject to the same limitations provided in this subsection. [1993, c. 672, §1 (new); §2 (aff).]

The credit must be apportioned among the taxable corporations in the affiliated group in the same proportion that the tax liability of each taxable corporation in the affiliated group bears to the total tax liability of all the taxable corporations in the affiliated group. [1993, c. 672, §1 (new); §2 (aff).]


6-B. Affiliated groups; tax years beginning on or after January 1, 1995. This subsection applies to tax years beginning on or after January 1, 1995. In the case of corporations that are members of an affiliated group engaged in a unitary business, the credit provided for in this section applies as follows.



A. The credit provided for in this section, in an amount equal to the aggregate qualified federal credit for all taxable corporations that are members of an affiliated group engaged in a unitary business, must be allowed against the total tax liability of all the taxable corporations that are members of the affiliated group engaged in a unitary business if the taxable corporations that are members of the affiliated group have, in the aggregate:

(1) Property considered to be qualified investment of at least $5,000,000 for that taxable year with a situs in the State and placed in service by the taxable corporations after January 1, 1979;


(2) Payroll records and reports substantiating that at least 100 new jobs attributable to the operation of property considered to be qualified investment were created in the 24-month period following the date the property was placed in service; and


(3) A new jobs credit base of at least $700,000 for the taxable year of the qualified federal credit or either of the next 2 calendar years. The $700,000 must be adjusted proportionally for any change in Title 26, section 1043, subsection 2 wages from $7,000.
[1993, c. 672, §1 (new); §2 (aff).]




B. The amount of the credit that may be used in any taxable year may not exceed the lesser of $500,000 or the total amount of tax liability otherwise due of all taxable corporations that are members of an affiliated group engaged in a unitary business. Any unused credit may be carried over to the following year or years for a period not to exceed 7 years, including the year the credit was first taken, and may be deducted from the tax imposed by this Part for that year or those years, subject to the same limitations provided in this subsection. [1993, c. 672, §1 (new); §2 (aff).]

The credit must be apportioned among the taxable corporations in the affiliated group in the same proportion that the tax liability of each taxable corporation in the affiliated group bears to the total tax liability of all the taxable corporations in the affiliated group. [1993, c. 672, §1 (new); §2 (aff).]


7. Legislative findings. The Legislature finds that encouragement of the growth of major industry in the State is in the public interest and promotes the general welfare of the people of the State; that the use of investment tax credits to encourage industry to make substantial capital investments in the State is necessary to promote the purpose of the Legislature of encouraging the growth of industry; and that the requirements of at least $5,000,000 in qualified investment in the State and an increase of at least 100 new jobs following the investment are reasonable qualifying criteria for the application of an investment tax credit and will best promote substantial capital investment in the State. [1993, c. 672, §1 (amd); §2 (aff).]


8. Report on jobs and investment tax credit. [2001, c. 652, §10 (rp).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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Augusta, Maine 04333-0007 This page created on: 2005-10-01
Title 36 - §5216-A. Credit for investment in the Maine Natural Resource Capital Company (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5216-A. Credit for investment in the Maine Natural Resource Capital Company (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5216-B. Seed capital investment tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§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. [1987, c. 854, §§4, 5 (new).]




B. "Investment" means an investment for which a certificate has been received. [1987, c. 854, §§4, 5 (new).]




C. "Investor" means a taxpayer who has received a certificate. [1987, c. 854, §§4, 5 (new).]

[1987, c. 854, §§4, 5 (new).]


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. 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 the investment is made and 25% per year must be taken in each of the next 3 taxable years. [2003, c. 451, Pt. E, §8 (amd).]


3. Limitation. The amount of the credit allowed under this section for any one taxable year shall not exceed 50% of the tax imposed by this Part on the investor for the taxable year before application of the credit. [1987, c. 854, §§4, 5 (new).]


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. [1987, c. 854, §§4, 5 (new).]


5. Recapture. In the event that the Finance Authority of Maine revokes a certificate, there shall 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 excess of the amount of credit revoked over the amount of credit not yet taken. [1987, c. 854, §§4, 5 (new).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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Title 36 - §5216-C. Contributions to family development account reserve funds

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5216-C. Contributions to family development account reserve funds

1. Credit allowed. A taxpayer who contributes to a family development account reserve fund as defined in Title 10, section 1075 is allowed a credit against the tax imposed by this Part equal to the lower of:



A. Twenty-five thousand dollars; or [1999, c. 475, §6 (new); §7 (aff).]




B. Fifty percent of the amount contributed by the taxpayer. [1999, c. 475, §6 (new); §7 (aff).]

Only one credit may be claimed on each annual income tax return regardless of filing status. The credit allowed under this section may not reduce the tax to less than 0 and must be applied after allowance for all other eligible credits. A taxpayer who claims a credit under this section may not claim an itemized charitable deduction under section 5125 for the amount of the contribution that qualified for the credit. [1999, c. 475, §6 (new); §7 (aff).]


2. Aggregate limitation. The total amount of contributions that may be claimed as credits under this section in a state fiscal year is limited to $200,000. [1999, c. 475, §6 (new); §7 (aff).]


3. Verification of eligibility. The Finance Authority of Maine, referred to in this section as the "authority," shall verify all claims for a credit under this section and shall provide the assessor with a list of all eligible claimants. The list must be prioritized based upon the date of the eligible contribution. The authority may establish procedures requiring submission of information necessary to verify eligibility by family development account reserve fund administrators. [1999, c. 475, §6 (new); §7 (aff).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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State House Room 108
Augusta, Maine 04333-0007 This page created on: 2005-10-01
Title 36 - §5216. Credit for investment in The Maine Capital Corporation or the Maine Natural Resource Capital Company (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5216. Credit for investment in The Maine Capital Corporation or the Maine Natural Resource Capital Company (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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State House Room 108
Augusta, Maine 04333-0007 This page created on: 2005-10-01
Title 36 - §5217-A. Income tax paid to other taxing jurisdiction

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5217-A. Income tax paid to other taxing jurisdiction

A resident individual is allowed a credit against the tax otherwise due under this Part, excluding the tax imposed by section 5203-C, for the amount of income tax imposed on that individual for the taxable year by another state of the United States, a political subdivision of any such state, the District of Columbia or any political subdivision of a foreign country that is analogous to a state of the United States with respect to income subject to tax under this Part that is derived from sources in that taxing jurisdiction. In determining whether income is derived from sources in another jurisdiction, the assessor may not employ the law of the other jurisdiction but shall instead assume that a statute equivalent to section 5142 applies in that jurisdiction. The credit, for any of the specified taxing jurisdictions, may not exceed the proportion of the tax otherwise due under this Part, excluding the tax imposed by section 5203-C, that the amount of the taxpayer's Maine adjusted gross income derived from sources in that taxing jurisdiction bears to the taxpayer's entire Maine adjusted gross income; except that, when a credit is claimed for taxes paid to both a state and a political subdivision of a state, the total credit allowable for those taxes does not exceed the proportion of the tax otherwise due under this Part, excluding the tax imposed by section 5203-C, that the amount of the taxpayer's Maine adjusted gross income derived from sources in the other state bears to the taxpayer's entire Maine adjusted gross income. [2003, c. 673, Pt. JJ, §4 (amd); §6 (aff).]
The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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State House Room 108
Augusta, Maine 04333-0007 This page created on: 2005-10-01
Title 36 - §5217-B. Employer-provided long-term care benefits

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5217-B. Employer-provided long-term care benefits

1. Credit. A taxpayer constituting an employing unit is allowed a credit against the tax imposed by this Part for each taxable year that begins on or after July 10, 1989 and before January 1, 2000 equal to the lowest of the following:



A. Five thousand dollars; [1989, c. 556, Pt. B, §11 (new).]




B. Twenty percent of the costs incurred by the taxpayer in providing long-term care policy coverage as part of a benefit package; or [1989, c. 556, Pt. B, §11 (new).]




C. One hundred dollars for each employee covered by an employer-provided long-term care policy. [1989, c. 556, Pt. B, §11 (new).]

[1999, c. 521, Pt. C, §7 (amd); §9 (aff).]


2. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings:



A. "Long-term care policy" has the same meaning as in Title 24-A, section 5051. [1989, c. 556, Pt. B, §11 (new).]




B. "Employing unit" has the same meaning as in Title 26, section 1043. [1989, c. 556, Pt. B, §11 (new).]

[1989, c. 556, Pt. B, §11 (new).]


3. Limitation. The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of tax otherwise due under this Part. Any unused credit may be carried over to the following year or years for a period not to exceed 15 years [1989, c. 556, Pt. B, §11 (new).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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Title 36 - §5217-C. Employer-provided long-term care benefits on and after January 1, 2000

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5217-C. Employer-provided long-term care benefits on and after January 1, 2000

1. Credit. A taxpayer constituting an employing unit is allowed a credit against the tax imposed by this Part for each taxable year equal to the lowest of the following:



A. Five thousand dollars; [1999, c. 521, Pt. C, §8 (new); §9 (aff).]




B. Twenty percent of the costs incurred by the taxpayer in providing eligible long-term care insurance as part of a benefit package; or [2001, c. 679, §5 (amd); §6 (aff).]




C. One hundred dollars for each employee covered by employer-provided eligible long-term care insurance. [2001, c. 679, §5 (amd); §6 (aff).]

[2001, c. 679, §5 (amd); §6 (aff).]


2. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.



A. "Employing unit" has the same meaning as in Title 26, section 1043. [1999, c. 521, Pt. C, §8 (new); §9 (aff).]




B. [2001, c. 679, §5 (rp); §6 (aff).]




C. "Eligible long-term care insurance" means:

(1) For tax years beginning on or after January 1, 2000, a qualified long-term care insurance contract as defined in the Code, Section 7702B(b); and


(2) For tax years beginning on or after January 1, 2002, a contract specified in subparagraph (1) or a long-term care insurance policy certified by the Superintendent of Insurance under Title 24-A, section 5075-A.
[2001, c. 679, §5 (new); §6 (aff).]

[2001, c. 679, §5 (amd); §6 (aff).]


3. Limitation. The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of tax otherwise due under this Part. Any unused credit may be carried over to the following year or years for a period not to exceed 15 years. [1999, c. 521, Pt. C, §8 (new); §9 (aff).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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State House Room 108
Augusta, Maine 04333-0007 This page created on: 2005-10-01
Title 36 - §5217. Employer-assisted day care

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5217. Employer-assisted day care

1. Credit allowed. A taxpayer constituting an employing unit is allowed a credit against the tax imposed by this Part for each taxable year equal to the lowest of:



A. Five thousand dollars; [1987, c. 769, Pt. A, §159 (rpr).]




B. Twenty percent of the costs incurred by the taxpayer in providing day care service for children of employees of the taxpayer; or [1987, c. 769, Pt. A, §159 (rpr).]




C. One hundred dollars for each child of an employee of the taxpayer enrolled on a full-time basis, or each full-time equivalent, throughout the taxable year in day care service provided by the taxpayer or in the first year that the taxpayer provides day care services, for each child enrolled on a full-time basis, or each full-time equivalent, on the last day of the year. [1987, c. 769, Pt. A, §159 (rpr).]

[1987, c. 769, Pt. A, §159 (rpr).]


2. Definitions. As used in this section, unless the context indicates otherwise, the following terms have the following meanings.



A. "Employing unit" has the same meaning as in Title 26, section 1043. [1987, c. 769, Pt. A, §159 (rpr).]




B. "Providing day care services" means expending funds to build, furnish, license, staff, operate or subsidize a day care center licensed by the Department of Health and Human Services to provide day care services to children of employees of the taxpayer at no profit to the taxpayer or to contract with a day care facility licensed by or registered with the department to provide day care services to children of the employees of the taxpayer. "Providing day care services" also includes the provision of day care resource and referral services to employees and the provision of vouchers by an employer to an employee for purposes of paying for day care services for children of the employee. [1987, c. 769, Pt. A, §159 (rpr); 2003, c. 689, Pt. B, §6 (rev).]




C. "Quality child care services" has the meaning set forth in section 5219-Q, subsection 1. [2001, c. 396, §36 (amd).]

[2001, c. 396, §36 (amd); 2003, c. 689, Pt. B, §6 (rev).]


3. Carryover; carry back. The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of tax otherwise due under this Part. Any unused credit may be carried over to the following year or years for a period not to exceed 15 years or it may be carried back for a period not to exceed 3 years. [1999, c. 708, §45 (amd).]


4. Quality child care services. The credit allowed under subsection 1 doubles in amount if the day care service provided by the taxpayer constitutes quality child care services. [2001, c. 396, §37 (amd).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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State House Room 108
Augusta, Maine 04333-0007 This page created on: 2005-10-01
Title 36 - §5218. Income tax credit for child care expenses

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5218. Income tax credit for child care expenses

1. Resident taxpayer. A resident individual is allowed a credit against the tax otherwise due under this Part in the amount of 25% of the federal tax credit allowable for child and dependent care expenses in the same tax year, except that for tax years beginning in 2003 to 2006, the applicable percentage is 21.5% instead of 25%. [2005, c. 12, Pt. L, §2 (amd).]


2. Nonresident or part-year resident taxpayer. A nonresident individual is allowed a credit against the tax otherwise due under this Part in the amount of 25% of the federal tax credit allowable for child and dependent care expenses multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the individual's entire federal adjusted gross income, as modified by section 5122, except that for tax years beginning in 2003 to 2006, the applicable percentage is 21.5% instead of 25%. [2005, c. 12, Pt. L, §3 (amd).]


2-A. Part-year resident taxpayer. An individual who files a return as a part-year resident in accordance with section 5224-A is allowed a credit against the tax otherwise due under this Part in the amount of 25%, except that for tax years beginning in 2003 to 2006 the applicable percentage is 21.5% instead of 25%, of the federal tax credit allowable for child and dependent care expenses multiplied by a ratio, the numerator of which is the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph A for that portion of the taxable year during which the individual was a resident plus the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph B for that portion of the taxable year during which the individual was a nonresident and the denominator of which is the individual's entire federal adjusted gross income, as modified by section 5122. [2005, c. 12, Pt. L, §4 (amd).]


3. Quality child care services. The credit provided by subsections 1, 2 and 2-A doubles in amount if the child care expenses were incurred through the use of quality child care services as defined in section 5219-Q, subsection 1. [2003, c. 391, §10 (amd).]


4. Refund. The credit allowed by this section may result in a refund of up to $500. In the case of a nonresident individual, the refundable portion of the credit may not exceed $500 multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the individual's entire federal adjusted gross income, as modified by section 5122. In the case of an individual who files a return as a part-year resident in accordance with section 5224-A, the refundable portion of the credit may not exceed $500 multiplied by a ratio, the numerator of which is the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph A for that portion of the taxable year during which the individual was a resident plus the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph B for that portion of the taxable year during which the individual was a nonresident and the denominator of which is the individual's entire federal adjusted gross income, as modified by section 5122. [2003, c. 391, §10 (amd).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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Title 36 - §5219-A. Retirement and disability credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-A. Retirement and disability credit

1. Resident taxpayer. A resident individual is allowed a credit against the tax otherwise due under this Part equal to 20% of any credit the taxpayer received for the same taxable year under the Code, Section 22. In no case may this credit reduce the Maine income tax to less than zero. [1999, c. 521, Pt. B, §7 (new); §11 (aff).]


2. Nonresident taxpayer. A nonresident individual is allowed a credit against the tax otherwise due under this Part equal to 20% of any credit the individual received for the same taxable year under the Code, Section 22 multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the individual's entire federal adjusted gross income, as modified by section 5122. In no case may this credit reduce the Maine income tax to less than zero. [2003, c. 390, §46 (amd).]


3. Part-year resident taxpayer. An individual who files a return as a part-year resident in accordance with section 5224-A is allowed a credit against the tax otherwise due under this Part equal to 20% of any credit the individual received for the same taxable year under the Code, Section 22 multiplied by a ratio, the numerator of which is the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph A for that portion of the taxable year during which the individual was a resident plus the individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph B for that portion of the taxable year during which the individual was a nonresident, and the denominator of which is the individual's entire federal adjusted gross income, as modified by section 5122. In no case may this credit reduce the Maine income tax to less than zero. [2003, c. 390, §47 (new).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-B. Conformity credit (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-B. Conformity credit (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-C. Forest management planning income credits

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-C. Forest management planning income credits

Once every 10 years, an individual is allowed a credit against the tax otherwise due under this Part for the lesser of $200 or the individual's cost for having a forest management and harvest plan developed for a parcel of forest land greater than 10 acres. For purposes of this section, the licensed professional forester may not be in the regular employ of the individual. In no case may this credit reduce the state income tax to less than zero. Those taxpayers claiming this credit must attach a statement from the forester supporting the claim and swear that the credit has not been claimed by them in the previous 10 years. Those taxpayers deducting the cost of the forester as an expense under the Internal Revenue Code must reduce the expense by the amount of the credit. This credit may be used in any tax year beginning on or after January 1, 1989. [1991, c. 377, §20 (rpr).] p align="center">36 §05219-C p align="center">Investment tax credit p align="center"> (REPEALED BY PL 1991, c. 377, §20) p align="center">36 §05219-C p align="center">Solid waste reduction investment tax credit p align="center"> (REPEALED BY PL 1991, c. 377, §20)
The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-D. Solid waste reduction investment tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-D. Solid waste reduction investment tax credit

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.



A. "Employing unit" has the same meaning as in Title 26, section 1043. [1989, c. 927, §6 (new).]




B. "Solid waste" has the same meaning as in Title 38, section 1303-C. [1989, c. 927, §6 (new).]




C. "Waste reduction, reuse or recycling equipment" means structures, machinery, equipment or devices, singly or in combination, designed and required to reduce solid waste generated by the employing unit or to separate, process, modify, convert, treat or repair solid waste generated within the State so that component materials or substances or recoverable resources may be used as raw material or for productive use and includes:

(1) Vehicles designed and dedicated exclusively for the collection of source-separated municipal solid waste generated within the State for the purpose of recycling;


(2) Add-ons or trailers designed to modify collection vehicles and dedicated to sorting, separating and transporting collected wastes generated within the State that are held for the purpose of recycling;


(3) Containers for the source separation and temporary storage of recyclable wastes generated within the State; or


(4) Industrial processing equipment designed to clean, purify and convert waste into a manufacturing feedstock.

"Waste reduction, reuse or recycling equipment" does not include structures, machinery, equipment or devices used to burn solid waste. [1993, c. 433, §2 (amd).]




D. "Investment credit base of equipment" means the total original basis of the equipment for federal income tax purposes, adjusted to exclude all architectural and engineering fees, site survey fees, legal expenses, development fees and insurance premiums that are included in the basis of the equipment for federal income tax purposes, of the taxpayer for equipment that was placed into service for the first time in the State by the taxpayer or other person during the tax year for which the credit is claimed. [1993, c. 433, §2 (new).]

[1993, c. 433, §2 (amd).]


2. Credit allowed. A taxpayer constituting an employing unit that purchases and uses, or purchases and leases to a person for use by that person at a fixed facility that separates, processes, converts or treats solid waste intended for sale by that person, any waste reduction, reuse or recycling equipment used exclusively in the implementation of a solid waste reduction, reuse or recycling program, is entitled to a credit against the tax imposed by this Part. A taxpayer may claim one of the following credits for each qualifying piece of equipment.



A. The credit allowed for equipment used to manage the taxpayer's own waste is 25% of the investment credit base of the equipment. [1993, c. 433, §2 (new).]




B. The credit allowed for equipment used to manage the collection and processing of waste generated by parties other than the taxpayer is 20% of the investment credit base of the equipment. [1993, c. 433, §2 (new).]




C. The credit allowed for equipment used to convert waste into a feedstock that can substitute for virgin materials in a manufacturing process is 30% of the investment credit base of the equipment. [1993, c. 433, §2 (new).]




D. The credit allowed for equipment placed into service during the period from January 1, 1990 to June 30, 1991 is 30% of the investment credit base of the equipment or from January 1, 1993 until the day prior to the effective date of this paragraph. [1993, c. 433, §2 (new).]

[1993, c. 433, §2 (amd).]


3. Eligible equipment. Equipment eligible for the credit allowed under this section includes waste reduction, reuse or recycling equipment used to reduce, reuse or recycle solid waste, at least 90% of which is generated within the State. A certificate that the equipment qualifies for the credit provided for in this section from the State Planning Office is required before the tax credit may be taken. Equipment associated with the separation of wastes prior to incineration is eligible when the State Planning Office certifies that the separated wastes are being recycled. [1995, c. 656, Pt. A, §16 (amd).]


4. Limitation; carry-over. The amount of the credit that may be used by a taxpayer for a taxable year may not exceed 50% of the amount of tax otherwise due under this Part for that year. A credit may not be used to reduce taxes in any tax year starting before January 1, 1993. Any unused credit may be carried over to the following year or years but must be used by December 31, 2004. [1997, c. 504, §17 (amd).]


5. Application. This section applies to equipment purchased and placed into use during the period from January 1, 1990 to June 30, 1991 or from January 1, 1993 to June 30, 1995. [1995, c. 368, Pt. NN, §3 (amd).]


6. Recapture. If a taxpayer disposes of equipment for which a credit was claimed less than 4 years after the equipment was placed into service for the first time in the State by the taxpayer or other person:



A. The tax imposed under this Part for the taxable year in which the disposition occurs is increased by the following amounts:

(1) If the disposition occurs one year or less after the equipment was placed into service for the first time in the State by the taxpayer or other person, an amount equal to 100% of the amount allowed as a credit with respect to the equipment disposed of in the year of disposition and all prior years;


(2) If the disposition occurs more than one year but less than 2 years after the equipment was placed into service for the first time in the State by the taxpayer or other person, an amount equal to 75% of the amount allowed as a credit with respect to the equipment disposed of in the year of disposition and all prior years;


(3) If the disposition occurs 2 years or more but less than 3 years after the equipment was placed into service for the first time in the State by the taxpayer or other person, an amount equal to 50% of the amount allowed as a credit with respect to the equipment disposed of in the year of disposition and all prior years; or


(4) If the disposition occurs 3 years or more but less than 4 years after the equipment was placed into service for the first time in the State by the taxpayer or other person, an amount equal to 25% of the amount allowed as a credit with respect to the equipment disposed of in the year of disposition and all prior years; and
[1993, c. 433, §2 (new).]




B. A portion of any unused credit attributable to the disposed of equipment is disallowed as follows:

(1) If the disposition occurs one year or less after the equipment was placed into service for the first time in the State by the taxpayer or other person, 100% of any unused credit attributable to the equipment disposed of is disallowed;


(2) If the disposition of the equipment occurs more than one year but less than 2 years after the equipment was placed into service for the first time in the State by the taxpayer or other person, 75% of any unused credit attributable to the equipment disposed of is disallowed;


(3) If the disposition of the equipment occurs 2 years or more but less than 3 years after the equipment was placed into service for the first time in the State by the taxpayer or other person, 50% of any unused credit attributable to the equipment disposed of is disallowed; or


(4) If the disposition of the equipment occurs 3 years or more but less than 4 years after the equipment was placed into service for the first time in the State by the taxpayer or other person, 25% of any unused credit attributable to the equipment disposed of is disallowed.
[1993, c. 433, §2 (new).]

This subsection does not apply to equipment that was acquired before October 1, 1993. [1993, c. 433, §2 (new).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-E. Investment tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-E. Investment tax credit

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.



A. "Directly" has the same meaning as defined in section 1752, subsection 2-A. [1991, c. 377, §21 (new).]




B. "Investment credit base" means the total original basis, without adjustment, for federal income tax purposes, of the taxpayer of all machinery and equipment placed in service for the first time in this State by the taxpayer or other person during any of the prior 5 taxable years, except in taxable years ending in 1995, the prior 6 taxable years, excluding the basis of machinery and equipment placed in service in this State prior to January 1, 1989 and after April 1, 1996. In the case of a combined report, the term investment credit base means the sum of the investment credit bases for all corporations included in the report.
If the taxpayer is reimbursed pursuant to chapter 915 for 100% of the property taxes assessed during the taxable year against all of the machinery and equipment that constitutes eligible property as defined in section 6651, subsection 1, that machinery and equipment may not be included in the investment credit base for that taxable year. The term "taxable year" means the taxable year for income tax purposes of the taxpayer. [1997, c. 24, Pt. C, §11 (amd).]




C. "Machinery and equipment" means machinery and equipment as defined in section 1752, subsection 7-B, with a situs in the State as of the last day of the immediately prior taxable year:

(1) That was subject to an allowance for depreciation under the Code by the taxpayer as of the last day of the immediately prior taxable year or would have been subject to an allowance for depreciation under the Code by the taxpayer as of that date, but for the fact that the property had been fully depreciated; and


(2) That is used directly and primarily in the production of tangible personal property intended to be sold or leased ultimately for final use or consumption.
[1991, c. 377, §21 (new).]




D. "Primarily" has the same meaning as defined in section 1752, subsection 9-A. [1991, c. 377, §21 (new).]




E. "Production" has the same meaning as defined in section 1752, subsection 9-B. [1991, c. 377, §21 (new).]

[1997, c. 24, Pt. C, §11 (amd).]


2. Credit allowed. A taxpayer is allowed a credit against the tax imposed by this Part for each taxable year equal to 1.0% of the investment credit base of the taxpayer. In the case of an affiliated group of corporations engaged in a unitary business, the credit is applied against the total tax liability of all the taxable corporations in the affiliated group and apportioned among those taxable corporations in the same proportion as the tax liability of each taxable corporation bears to the total tax liability of all the taxable corporations. [1991, c. 528, Pt. N, §18 (amd); §19 (aff); Pt. RRR (aff); c. 591, Pt. N, §18 (amd); §19 (aff).]


3. Limitation. The credit allowed by subsection 2 for the taxable year, plus any credit carry-forward or carry-back to the taxable year allowed by subsection 5, may not exceed so much of the tax liability of the taxpayer, or the total tax liability of all taxable corporations that are members of an affiliated group engaged in a unitary business, for the taxable year, as does not exceed $25,000 plus 75% of so much of the tax liability for the taxable year as exceeds $25,000. When the limitation provided in this subsection is exceeded, carry-forwards are applied first and credits under subsection 2 for the taxable year are applied 2nd. Carry-forwards from an earlier unused credit year are applied before carry-forwards from a later unused credit year. [1991, c. 528, Pt. N, §18 (amd); §19 (aff); Pt. RRR (aff); c. 591, Pt. N, §18 (amd); §19 (aff).]


3-A. Exception. Notwithstanding subsection 3, for any tax year ending on or after March 1, 1994 but prior to March 1, 1995, the credit allowed by subsection 2 for the taxable year, plus any credit carry-forward or carry-back to the taxable year allowed by subsection 5, may not exceed so much of the tax liability of the taxpayer, or the total tax liability of all taxable corporations that are members of an affiliated group engaged in a unitary business, for the taxable year, as does not exceed $25,000 plus 60% of so much of the tax liability for the taxable year as exceeds $25,000. When the limitation provided in this subsection is exceeded, carry-forwards are applied first and credits under subsection 2 for the taxable year are applied 2nd. Carry-forwards from an earlier unused credit year are applied before carry-forwards from a later unused credit year. [1993, c. 671, §3 (new).]


4. Partnerships and S corporations. In the case of machinery and equipment held by a partnership or an S corporation, the term "taxpayer" as used in subsection 1 means the partnership or S corporation. For the purposes of this section, a partner of a partnership shall have an investment credit base determined by multiplying the investment credit base of the partnership by the partner's percentage interest in the taxable income or loss of the partnership for federal income tax purposes for the taxable year and a shareholder of an S corporation shall have an investment credit base determined by multiplying the investment credit base of the S corporation by the shareholder's percentage share of the stock of the S corporation as of the end of the taxable year. [1991, c. 377, §21 (new).]


5. Carry-forward. If the sum of the amount of the credit allowed for any taxable year under subsection 2, plus the amount of any credit carry-forwards to the taxable year, exceeds the amount of the limitation imposed by subsection 3 for that taxable year, in this section referred to as the "unused credit year," that excess attributable to the credit allowed for the taxable year under subsection 2 may be carried forward for no more than 5 taxable years and, subject to the provisions of subsection 3, may be applied as a credit against the tax imposed by this Part for the taxable year or years to which carried. The entire amount of the unused credit must be carried to the earliest of the taxable years to which, by reason of this subsection, the credit may be carried and then to each of the other taxable years to the extent the unused credit is not used for a prior taxable year due to the provisions of subsection 3. [1991, c. 528, Pt. N, §18 (amd); §19 (aff); Pt. RRR (aff); c. 591, Pt. N, §18 (amd); §19 (aff).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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Title 36 - §5219-F. Reclaimed wood waste and cedar waste credit (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-F. Reclaimed wood waste and cedar waste credit (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-G. Tax credits for partners, S corporation shareholders and beneficiaries of estates and trusts

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-G. Tax credits for partners, S corporation shareholders and beneficiaries of estates and trusts

1. Tax credits for partners and S corporation shareholders. Each partner of a partnership or shareholder of an S corporation is allowed a credit against the tax imposed by this Part in an amount equal to the partner's or shareholder's pro rata share of the tax credits described in this chapter, except that in the case of credits attributable to a financial institution subject to tax under chapter 819, the credits are allowable only against the tax imposed by that chapter. A partner's pro rata share must equal the partner's percentage interest in the taxable income or loss of the partnership for federal income tax purposes for the taxable year. The pro rata share of a shareholder of an S corporation must equal the shareholder's percentage share of stock of the S corporation as of the end of the taxable year. [1999, c. 708, §46 (amd).]


2. Tax credits for beneficiaries of estates and trusts. Each beneficiary of an estate or trust is allowed a credit against the tax imposed by this Part in an amount equal to the beneficiary's pro rata share of the tax credits described in this chapter. A beneficiary's pro rata share must equal the beneficiary's share of federal distributable net income of the estate or trust. If the estate or trust has no federal distributable net income for the taxable year, the share of each beneficiary in the applicable tax credits is in proportion to that beneficiary's share of the estate or trust income for that year, under local law or the terms of the instrument, which is required to be distributed currently, and any other amounts of income distributed in that year. Any balance of the applicable credits is allocated to the estate or trust. [1999, c. 521, Pt. B, §8 (new); §11 (aff).]

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Title 36 - §5219-H. Application of credits against taxes

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-H. Application of credits against taxes

1. Meaning of tax. Whenever a credit provision in chapter 822, other than section 5219-W, allows for a credit "against the tax otherwise due under this Part," "against the tax imposed by this Part" or similar language, "tax" means all taxes under this Part, except the minimum tax imposed by section 5203-C and the taxes imposed by chapter 827.



A. [2003, c. 673, Pt. F, §1 (rp); §2 (aff).]




B. [2003, c. 673, Pt. F, §1 (rp); §2 (aff).]

[2003, c. 673, Pt. F, §1 (rpr); §2 (aff).]


2. Meaning of tax liability. Whenever a credit provided for in chapter 822 is limited by reference to tax liability, "tax liability" means the tax liability for all taxes under this Part, except the minimum tax imposed by section 5203-C and the taxes imposed by chapter 827.



A. [2003, c. 673, Pt. F, §1 (rp); §2 (aff).]




B. [2003, c. 673, Pt. F, §1 (rp); §2 (aff).]

[2003, c. 673, Pt. F, §1 (rpr); §2 (aff).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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Title 36 - §5219-I. Nursing home care credit (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-I. Nursing home care credit (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-J. Catastrophic health expense credit (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-J. Catastrophic health expense credit (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
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Title 36 - §5219-K. Research expense tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-K. Research expense tax credit

1. Credit allowed. A taxpayer is allowed a credit against the tax due under this Part equal to the sum of 5% of the excess, if any, of the qualified research expenses for the taxable year, over the base amount; and 7.5% of the basic research payments determined under subsection (e)(1)(A) of Section 41 of the Code. The term "base amount" means the average spent on qualified research expenses over the last 3 years by the taxpayer. The terms "qualified research expenses," "qualified organization base period amount," "basic research" and any other terms affecting the calculation of the credit, unless the context otherwise requires, have the same meanings as under Section 41 of the Code, as amended and in effect on December 31, 1994, but only apply to expenditures for research conducted in this State. In determining the amount of the credit allowable under this section, the State Tax Assessor may aggregate the activities of all corporations that are members of a controlled group of corporations, as defined by subsection (f)(1)(A) of Section 41 of the Code, and in addition may aggregate the activities of all entities, whether or not incorporated, that are under common control, as defined by subsection (f)(1)(B) of Section 41 of the Code. [1999, c. 127, Pt. B, §9 (amd).]


2. Reduction not less than zero. The credit allowed under this section for any taxable year may not reduce the tax due to less than zero. [1995, c. 368, Pt. GGG, §7 (new).]


3. Limitation on credit allowed. The credit allowed under this section is limited to 100% of a corporation's first $25,000 of tax due, as determined before the allowance of any credits, plus 75% of the corporation's tax due, as determined in excess of $25,000. The State Tax Assessor shall adopt rules similar to those authorized under Section 38(c) (3)(B) of the Code for purposes of apportioning the $25,000 among members of a controlled group. [1997, c. 504, §18 (amd).]


4. Corporations filing combined return. In the case of corporations filing a combined return, a credit generated by an individual member corporation under the provisions of this section must first be applied against the tax due attributable to that company under this Part. A member corporation with an excess research and development credit may apply its excess credit against the tax due of another group member to the extent that that other member corporation can use additional credits under the limitations of subsection 3. Unused, unexpired credits generated by a member corporation may be carried over from year to year by the individual corporation that generated the credit, subject to the limitation in subsection 5. [1997, c. 504, §18 (amd).]


5. Carryover to succeeding years. A taxpayer entitled to a credit under this section for any taxable year may carry over and apply to the tax due for any one or more of the next succeeding 15 taxable years the portion, as reduced from year to year, of the credit that exceeds the tax due for the taxable year. A taxpayer may carry over and apply to the tax due for any subsequent taxable year the portion of those credits, as reduced from year to year, not allowed by subsection 3. [1995, c. 368, Pt. GGG, §7 (new).]


6. Additional rules. The State Tax Assessor shall adopt such rules as are necessary to implement this section. [1995, c. 368, Pt. GGG, §7 (new).]


7. Application. This section applies to any tax year beginning on or after January 1, 1996. [1995, c. 368, Pt. GGG, §7 (new).]

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Title 36 - §5219-L. Super credit for substantially increased research and development

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-L. Super credit for substantially increased research and development

1. Super credit allowed for substantial expansions of research and development. A taxpayer qualifying for a research expense tax credit under section 5219-K is allowed an additional credit against the tax due equal to the excess, if any, of the qualified research expenses for the taxable year over the super credit base amount. For purposes of this section, "super credit base amount" means the average amount spent on qualified research expenses by the taxpayer in the 3 taxable years immediately preceding the effective date of this section, increased by 50%. The super credit allowed under this subsection applies only to the expenditures for research conducted in this State. The term "qualified research expenses" has the same meaning as under Section 41 of the Code, as amended and in effect on December 31, 1994. [1997, c. 557, Pt. B, §10 (new); §14 (aff); Pt. G, §1 (aff).]


2. Amount of super credit allowed. The credit allowed under this section is limited to 50% of the taxpayer's tax due after the allowance of any other credits taken pursuant to this chapter. [1997, c. 557, Pt. B, §10 (new); §14 (aff); Pt. G, §1 (aff).]


3. Carry over to succeeding years. A taxpayer entitled to a credit under this section for any taxable year may carry over and apply to the tax due for any one or more of the next succeeding 5 taxable years the portion, as reduced from year to year, of any unused credit, but in no event may the credit applied in any single year exceed 50% of the taxpayer's tax due after the allowance of any other credits taken pursuant to this chapter. [1997, c. 557, Pt. B, §10 (new); §14 (aff); Pt. G, §1 (aff).]


4. Limitation. The credit provided by this section may not be used to reduce the taxpayer's tax liability under this Part to less than the amount of the taxpayer's tax due in the preceding taxable year after the allowance of any credits taken pursuant to this chapter. [1997, c. 557, Pt. B, §10 (new); §14 (aff); Pt. G, §1 (aff).]


5. Corporations filing combined returns. In the case of corporations filing a combined return, a credit generated by an individual member corporation under the provisions of this section must first be applied against the tax due attributable to that company under this Part. A member corporation with an excess research and development credit may apply its excess credit against the tax due of another group member to the extent that that other member corporation can use additional credits under the limitations of subsection 4. Unused, unexpired credits generated by a member corporation may be carried over from year to year by the individual corporation that generated the credit, subject to the limitation in subsection 3. [1997, c. 557, Pt. B, §10 (new); §14 (aff); Pt. G, §1 (aff).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-M. High-technology investment tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-M. High-technology investment tax credit

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.



A. "High-technology activity" means:

(1) The design, creation and production of computer software, computer equipment, supporting communications components and other accessories that are directly associated with computer software and computer equipment; and


(2) The provision of Internet access services and advanced telecommunications services.
[2001, c. 358, Pt. M, §1 (amd); §6 (aff).]




B. "Investment credit base" means the total adjusted basis of the eligible equipment for federal income tax purposes of the taxpayer on the date that the equipment was placed into service for the first time in the State by the taxpayer or other person during the tax year for which the credit is claimed. In computing the adjusted basis of the eligible equipment on the date placed in service for the first time in the State, the total allowable depreciation of the equipment for the tax year must be multiplied by a fraction the numerator of which is the number of days that the equipment was in service in the State during the tax year and the denominator of which is the total number of days that the equipment was in service during the tax year. [1997, c. 668, §31 (amd); §42 (aff).]




C. "Eligible equipment" means all computer equipment, electronics components and accessories, communications equipment and computer software placed into service in the State and used primarily in high-technology activity, provided that otherwise eligible equipment used in wire line telecommunications must be capable of transmitting data at 200 kilobits or more per second in at least one direction and otherwise eligible equipment used in wireless telecommunications equipment must be capable of transmitting data at 42 kilobits or more per second in at least one direction. [2001, c. 358, Pt. M, §2 (amd); §6 (aff).]




D. "Primarily" means more than 50% of the time. [1999, c. 414, §47 (new).]




E. "Qualified lessor" means a person that leases or subleases eligible equipment to a person that is engaged primarily in high technology activity, but only when:

(1) The eligible equipment is used primarily in the high technology activity engaged in by the lessee or sublessee;


(2) The lessor derived aggregate total lease payments from personal property of at least 3 times the total payments received from eligible equipment during the taxable year; and


(3) The lease or sublease upon which the credit is based qualifies as a lease of property for federal income tax purposes under the guidelines contained in Revenue Procedure 2001-28 of the United States Department of the Treasury, Internal Revenue Service.
[2003, c. 673, Pt. G, §1 (new); §3 (aff).]

[2003, c. 673, Pt. G, §1 (amd); §3 (aff).]


1-A. Credit allowed. The following persons are allowed a credit as follows.



A. Unless entitlement to the credit is waived by the user pursuant to paragraph B:

(1) A person engaged primarily in high technology activity that purchases and uses eligible equipment in that activity may claim a credit in the amount of that person's investment credit base subject to the limitations provided by subsection 4; or


(2) A person engaged primarily in a high technology activity that leases and uses eligible equipment in that activity may claim a credit in the amount of the lease payments made on the eligible equipment in each tax year, except that if the eligible equipment is depreciable by that person for federal income tax purposes, the credit is based on that person's investment credit base subject to the limitations provided by subsection 4.
[2001, c. 358, Pt. M, §3 (amd); §6 (aff).]




B. When a qualified lessor provides the assessor with satisfactory evidence that the lessee or sublessee of eligible equipment has waived its right to claim a credit under this section that it is otherwise entitled to claim with respect to that equipment:

(1) A qualified lessor that leases eligible equipment may claim a credit in the amount of the lessee's investment credit base to the extent of the credits waived by the lessee, net of any lease payments received for the eligible equipment in the taxable year, subject to the limitations provided by subsection 4; and


(2) A qualified lessor that subleases eligible equipment may claim a credit in the amount of the lease payments made on the eligible equipment in each tax year, net of sublease payments received in the taxable year, except that if the eligible equipment is depreciable by the sublessee for federal income tax purposes, the credit is based on the sublessee's investment credit base to the extent of the credits waived by the sublessee subject to the limitations provided by subsection 4.
[2003, c. 673, Pt. G, §2 (amd); §3 (aff).]

[2003, c. 673, Pt. G, §2 (amd); §3 (aff).]


2. Purchaser of eligible equipment; credit allowed. [1997, c. 668, §33 (rp); §42 (aff).]


3. Lessor of eligible equipment; credit allowed. [1997, c. 668, §33 (rp); §42 (aff).]


4. Limitations. The credit allowed by this section, including amounts carried to the tax year pursuant to subsection 5, may not be used:



A. To reduce a person's tax liability under this Part to less than zero; [2001, c. 358, Pt. M, §4 (new); §6 (aff).]




B. To reduce a person's tax liability under this Part to less than the amount of the taxpayer's tax liability in the preceding taxable year after the allowance of any other credits taken pursuant to this chapter; or [2001, c. 358, Pt. M, §4 (new); §6 (aff).]




C. Except as otherwise provided by subsection 5, paragraph B, to reduce a person's tax liability by more than $100,000, after the allowance of all other tax credits except for the credits allowed under sections 5216-C and 5219-L. [2001, c. 358, Pt. M, §4 (new); §6 (aff).]

[2001, c. 358, Pt. M, §4 (rpr); §6 (aff).]


5. Carry over to succeeding years. Unused credits may be carried forward to succeeding tax years as follows.



A. A person entitled to a credit under this section for any taxable year may carry over and apply to the tax liability for any one or more of the next succeeding 5 taxable years the portion of any unused credits. [2001, c. 358, Pt. M, §4 (new); §6 (aff).]




B. Unused credits for which a person was eligible, but did not claim, for tax years ending prior to January 1, 2001 may be carried forward and applied to the tax liability for any one or more of the next succeeding 10 taxable years to the extent that those credits relate to equipment that meets the definition of eligible equipment in effect for tax years beginning on or after January 1, 2001. Credits carried forward that are allowed to a person pursuant to this paragraph are limited to $100,000 per year, except that if a person's investment credit base for any taxable year beginning on or after January 1, 2001 is less than $100,000, the credit allowed under this paragraph may be increased by an amount equal to the difference between $100,000 and the person's investment credit base, provided that the credit allowed by this section may in no event exceed $200,000. [2001, c. 358, Pt. M, §4 (new); §6 (aff).]

[2001, c. 358, Pt. M, §4 (rpr); §6 (aff).]


6. Corporations filing combined return. In the case of corporations filing a combined return, a credit generated by an individual member corporation under the provisions of this section must first be applied against the tax liability attributable to that company under this Part. A member corporation with an excess high-technology investment tax credit may apply its excess credit against the tax liability of other group members to the extent that the other member corporations can use additional credits under the limitations of subsection 4. Unused, unexpired credits generated by a member corporation may be carried over from year to year by the individual corporation that generated the credit, subject to the limitations in subsection 5, and the rules set forth in this paragraph for applying the credit to the tax liability of other group members are applicable in the years to which credits are carried forward. [2001, c. 358, Pt. M, §5 (amd); §6 (aff).]

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Title 36 - §5219-N. Low-income tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-N. Low-income tax credit

1. Generally. Except as provided in subsection 2, an individual whose Maine taxable income determined as if the individual were a resident individual for the entire year is $2,000 or less is allowed a credit equal to the tax otherwise imposed on that individual by this Part. In no case may this credit reduce the Maine income tax to less than zero. [2003, c. 390, §48 (amd).]


2. Exceptions. The following individuals are not eligible for the credit allowed by this section:



A. An individual who is claimed as a dependent on another individual's income tax return; and [1997, c. 557, Pt. E, §1 (new); §2 (aff); Pt. G, §1 (aff).]




B. An individual who is subject to the state minimum tax imposed by section 5203-C. [2003, c. 673, Pt. JJ, §5 (amd); §6 (aff).]

[2003, c. 673, Pt. JJ, §5 (amd); §6 (aff).]


3. Returns not required. Notwithstanding section 5220 or any other provision of law, an individual who is eligible for this credit is not required to file a Maine income tax return. [2003, c. 390, §48 (amd).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-O. Credit for dependent health benefits paid

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-O. Credit for dependent health benefits paid

1. Credit allowed. A taxpayer constituting an employing unit that employs fewer than 5 employees is allowed a credit to be computed as provided in this section against the tax imposed by this Part, subject to the limitations contained in subsections 3 and 4. The credit equals the lesser of 20% of dependent health benefits paid with respect to the taxpayer's low-income employees under a health benefit plan during the taxable year for which the credit is allowed or $125 per low-income employee with dependent health benefits coverage. A taxpayer who received a credit under this section in the preceding year and whose number of low-income employees is 5 or more may continue to receive the credit for 2 years after the last year in which the number of employees was fewer than 5. [2001, c. 396, §39 (amd).]


2. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.



A. "Dependent" means a dependent, as defined by Section 152 of the Code, who is under 19 years of age. [1997, c. 775, §1 (new); §2 (aff).]




B. "Dependent health benefits" means health benefits and health insurance costs allowable as deductions to the employer under Section 105 of the Code, paid by the taxpayer on behalf of the taxpayer's low-income employees for the benefit of the employees' dependents. [1997, c. 775, §1 (new); §2 (aff).]




C. "Employing unit" has the same meaning as in Title 26, section 1043. [1997, c. 775, §1 (new); §2 (aff).]




D. "Health benefit plan" means a plan that:

(1) Includes comprehensive coverage for at least the following range of benefits:

(a) Inpatient and outpatient hospital services;


(b) Physicians' surgical and medical services;


(c) Laboratory and x-ray services; and


(d) Well-baby and well-child care, including age-appropriate immunizations;



(2) Affords coverage that has an actuarial value no less than 80% of the actuarial value of coverage that is provided to employees of the State. For purposes of this paragraph, "actuarial value" means the expected cost of a benefit based on assumptions as to relevant variables such as morbidity, mortality, persistency and interest. When comparing the actuarial value of one benefit or package of benefits to another, both actuarial values must be based on the same assumptions;


(3) Imposes copayment and deductible costs on the employee that do not exceed 10% of the actuarial value of all benefits afforded by the plan; and


(4) Makes the same or comparable coverage available for the benefit of the employee's dependent children who are under 19 years of age.
[1997, c. 775, §1 (new); §2 (aff).]




E. "Low-income employee" means a Maine resident whose average weekly earnings from the taxpayer do not exceed the State's average weekly wage as calculated by the Department of Labor. [1997, c. 775, §1 (new); §2 (aff).]

[1997, c. 775, §1 (new); §2 (aff).]


3. Qualifications. A taxpayer may claim the credit allowed by this section only for those periods during which the following conditions are met:



A. The taxpayer maintains a health benefit plan that is available to all of the taxpayer's low-income employees who have been employed for 30 days or more on a schedule that exceeds either 25 hours per week or 1000 hours per year; [1997, c. 775, §1 (new); §2 (aff).]




B. The taxpayer pays at least 80% of the cost of health insurance coverage for each low-income employee who is under the health benefit plan; [1997, c. 775, §1 (new); §2 (aff).]




C. The taxpayer pays at least 60% of the cost of dependent health benefits for children under 19 years of age who are covered under the health benefit plan and who are dependents of a low-income employee; and [1997, c. 775, §1 (new); §2 (aff).]




D. The taxpayer submits documentation from the insurer of the portion of the cost of benefits attributable to coverage of dependents that qualifies for a credit under this section. [1997, c. 775, §1 (new); §2 (aff).]

[1997, c. 775, §1 (new); §2 (aff).]


4. Limitations; carry-over. The amount of the credit that may be used by a taxpayer for a taxable year may not exceed 50% of the state income tax otherwise due under this Part for that year. The unused portion of any credit may be carried over to the following year or years for a period not to exceed 2 years. The credit allowable under this section may not be carried back to prior years. [1997, c. 775, §1 (new); §2 (aff).] 36 §05219-O Clean fuel vehicle economic and infrastructure development (As enacted by PL 1997, c. 791, Pt. A, §3 is REALLOCATED TO TITLE 36, SECTION 5219-P)

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Title 36 - §5219-P. Clean fuel vehicle economic and infrastructure development (REALLOCATED FROM TITLE 36, SECTION 5219-O)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-P. Clean fuel vehicle economic and infrastructure development (REALLOCATED FROM TITLE 36, SECTION 5219-O)

1. Definition. As used in this section, unless the context otherwise indicates, the term "clean fuel" means any product or energy source used to propel motor vehicles, as defined in Title 29-A, section 101, other than conventional gasoline, diesel or reformulated gasoline that, when compared to conventional gasoline, diesel or reformulated gasoline, results in lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide or particulates or any combination of these. "Clean fuel" includes, but is not limited to, compressed natural gas; liquefied natural gas; liquefied petroleum gas; hydrogen; hythane, which is a combination of compressed natural gas and hydrogen; dynamic flywheels; solar energy; alcohol fuels containing not less than 85% alcohol by volume; and electricity. [RR 1997, c. 2, §62 (ral).]


2. Credit allowed. A taxpayer is allowed a credit against the tax imposed by this Part in an amount equal to the qualifying percentage of expenditures paid or incurred by the taxpayer for the construction or installation of or improvements to any filling or charging station in this State for the purposes of providing clean fuels to the general public for use in motor vehicles, as calculated pursuant to subsection 4. [1999, c. 414, §49 (amd).]


3. Limitation; carry-over. The credit allowed under subsection 2 may not reduce the tax otherwise due under this Part below zero and the credit may not exceed the tax liability for income that is earned by the taxpayer from the sale of clean fuels sold for use in motor vehicles. Any unused portion of the credit may be carried over to the following year or years until exhausted. [RR 1997, c. 2, §62 (ral).]


4. Qualifying percentage. For purposes of calculating the credit, the qualifying percentage is:



A. Fifty percent for expenditures made from January 1, 1999 to December 31, 2001; and [RR 1997, c. 2, §62 (ral).]




B. Twenty-five percent for expenditures made from January 1, 2002 to December 31, 2005. [RR 1997, c. 2, §62 (ral).]

[RR 1997, c. 2, §62 (ral).]
div>
This section is effective for tax years beginning on or after January 1, 1999 and is repealed for tax years ending on or after January 1, 2006. [RR 1997, c. 2, §62 (ral).]
The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-Q. Quality child care investment credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-Q. Quality child care investment credit

1. Definition. As used in this section, unless the context otherwise indicates, "quality child care services" means services provided at a child care site that meets minimum licensing standards and:



A. Is accredited by an independent, nationally recognized program approved by the Department of Health and Human Services, Office of Head Start and Child Care; [1999, c. 401, Pt. NNN, §6 (new); §§8, 9 (aff); 2003, c. 689, Pt. B, §6 (rev).]




B. Utilizes recognized quality indicators for child care services approved by the Department of Health and Human Services, Office of Head Start and Child Care; and [1999, c. 401, Pt. NNN, §6 (new); §§8, 9 (aff); 2003, c. 689, Pt. B, §6 (rev).]




C. Includes provisions for parent and client input, a review of the provider's policies and procedures, a review of the provider's program records and an on-site program review. [1999, c. 401, Pt. NNN, §6 (new); §§8, 9 (aff).]

For large, multifunction agencies, only those portions of the child care sites that were reviewed by the accrediting body may be considered sites that provide quality child care services. [1999, c. 708, §47 (amd); 2003, c. 689, Pt. B, §6 (rev).]


1-A. Certification. Upon application by an investor, the Department of Health and Human Services, Office of Head Start and Child Care shall certify if an investment in a child care site contributed significantly toward the ability of the child care site to improve its level of child care services toward the goal of providing quality child care services. The department shall send a list of taxpayers making certified investments in the previous year to the State Tax Assessor by February 1st annually. [1999, c. 708, §47 (new); 2003, c. 689, Pt. B, §6 (rev).]


2. Credit allowed. A taxpayer that has made an investment in child care services certified under subsection 1-A during the tax year is allowed a credit against the tax imposed by this Part in an amount equal to the qualifying portion of expenditures paid or expenses incurred by the taxpayer for certified investments in child care services as calculated pursuant to subsection 3. [1999, c. 708, §47 (amd).]


3. Qualifying portion. For purposes of calculating the credit provided by this section, the qualifying portion is:



A. For a corporation, 30% of up to $30,000 of expenditures, apportioned if part of an affiliated group engaged in a unitary business; and [1999, c. 401, Pt. NNN, §6 (new); §§8, 9 (aff).]




B. For an individual taxpayer, if the taxpayer expends at least $10,000 in one year, $1,000 each year for 10 years and $10,000 at the end of the 10-year period. [1999, c. 401, Pt. NNN, §6 (new); §§8, 9 (aff).]

[1999, c. 708, § 47 (amd).]


4. Limitation; carry-over. The credit provided by this section may not reduce the tax otherwise due under this Part below zero. Any unused portion of the credit may be carried over to the following year or years until exhausted. [1999, c. 708, §47 (amd).] 36 §05219-Q Credit for rehabilitation of historic properties (As enacted by PL 1999, c. 401, Pt. RRR, §1 is REALLOCATED TO TITLE 36, SECTION 5219-R)

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Title 36 - §5219-R. Credit for rehabilitation of historic properties (REALLOCATED FROM TITLE 36, SECTION 5219-Q)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-R. Credit for rehabilitation of historic properties (REALLOCATED FROM TITLE 36, SECTION 5219-Q)

A taxpayer is allowed a credit against the tax imposed under this Part equal to the amount of credit claimed by the taxpayer for the taxable year under Section 47 of the Code with respect to expenditures incurred after December 31, 1999 for a certified historic structure located in the State. The credit is nonrefundable and is limited to $100,000 annually per taxpayer. A credit received under this section is subject to the same recapture provisions as apply to a credit received under Section 47 of the Code and to any available federal carry-back or carry-forward provisions. [2001, c. 526, §5 (amd); §6 (aff).]
The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-S. Earned income credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-S. Earned income credit

A taxpayer is allowed a credit against the taxes otherwise due under this Part equal to 5% of the federal earned income credit for the same taxable year, except that for tax years beginning in 2003, 2004 and 2005, the applicable percentage is 4.92% instead of 5%. The credit may not reduce the state income tax to less than zero. [2003, c. 20, Pt. GG, §1 (amd).] p align="center">36 §05219-S p align="center">Credit for consumption of wood processing residue p align="center">(REALLOCATED TO TITLE 36, SECTION 5219-T)
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Title 36 - §5219-T. Credit for consumption of wood processing residue (REALLOCATED FROM TITLE 36, SECTION 5219-S) (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-T. Credit for consumption of wood processing residue (REALLOCATED FROM TITLE 36, SECTION 5219-S) (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
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Title 36 - §5219-U. Educational attainment investment tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-U. Educational attainment investment tax credit

1. Definitions. As used in this section, the terms "need-based scholarship" and "qualified scholarship organization" have the same meaning as under Title 10, section 1100-Y, subsection 1. [2001, c. 700, §4 (new); §10 (aff).]


2. Credit allowed. A taxpayer is allowed a credit against the tax otherwise due under this Part in the amount of: REVISOR'S NOTE: Paragraph A did not become effective per operation of PL 2001, c. 700, §11.



B. Twenty percent of the amount contributed during the taxable year to a qualified scholarship organization for need-based scholarships for tax years beginning in 2007; or [2005, c. 12, Pt. Q, §5 (amd).]




C. Fifty percent of the amount contributed during the taxable year to a qualified scholarship organization for need-based scholarships for tax years beginning after 2007. [2005, c. 12, Pt. Q, §5 (amd).]

The credit may not exceed $2,000 for an individual taxpayer or $10,000 for each taxpayer who is an employing unit as defined in Title 26, section 1043, subsection 10. For individual taxpayers, the total combined tax credit under this section and under section 5219-V may not exceed $10,000 annually. For purposes of this subsection, the contribution may not directly benefit the taxpayer claiming the credit, a spouse or child of an individual taxpayer claiming the credit, a director, trustee, officer or employee of an employing unit claiming the credit or the spouse or child of a director, trustee, officer or employee of an employing unit claiming the credit. The contribution may be made in cash, its equivalent or in stock. In no case may the credit reduce the tax otherwise due under this Part to less than zero. [2005, c. 12, Pt. Q, §5 (amd).]


3. Carry over to succeeding years. A taxpayer entitled to a credit under this section for any taxable year may carry over and apply to the tax liability for any one or more of the next succeeding 5 taxable years the portion, as reduced from year to year, of any unused credits. [2001, c. 700, §4 (new); §10 (aff).]

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Title 36 - §5219-V. Recruitment credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-V. Recruitment credit

1. Credit allowed. A taxpayer who is an employing unit as defined in Title 26, section 1043, subsection 10 is allowed a credit against the tax otherwise due under this Part in the amount of: REVISOR'S NOTE: Paragraph A did not become effective per operation of PL 2001, c. 700, §11.



B. Beginning in 2007, 15% of the amount of loan repayments paid during the taxable year to a creditor on behalf of an employee of the taxpayer as part of a postsecondary education loan repayment agreement between the taxpayer and the employee of the taxpayer. [2005, c. 12, Pt. Q, §6 (amd).]

[2005, c. 12, Pt. Q, §6 (amd).]


2. Conditions. The credit allowed under subsection 1 is subject to the conditions under this subsection.



A. At the time the taxpayer and the employee enter into the loan repayment agreement under this section, the employee of the taxpayer must have graduated from an accredited public or private institution of higher education, be a resident individual as defined in section 5102, subsection 5 and have an outstanding postsecondary education loan as defined by rules established by the Finance Authority of Maine pursuant to Title 10, section 1100-Y, subsection 7. [2001, c. 700, §7 (new); §10 (aff).]




B. A postsecondary education loan repayment agreement under this section may not directly benefit a director, trustee or officer of the taxpayer claiming the credit or the spouse or child of a director, trustee or officer of the taxpayer claiming the credit. [2001, c. 700, §7 (new); §10 (aff).]




C. The total combined credit for each taxpayer under this section and under section 5219-U may not exceed $10,000 annually and may not reduce the tax otherwise due under this Part to less than zero. A taxpayer entitled to a credit under this section for any taxable year may carry over and apply to the tax liability for any one or more of the next succeeding 5 taxable years the portion, as reduced from year to year, of any unused credits. [2001, c. 700, §7 (new); §10 (aff).]

[2001, c. 700, §7 (new); §10 (aff).]

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Title 36 - §5219-W. Pine Tree Development Zone tax credit

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-W. Pine Tree Development Zone tax credit

1. Credit allowed. Except as provided by subsection 2, a taxpayer that is a qualified Pine Tree Development Zone business as defined in Title 30-A, section 5250-I, subsection 17 is allowed a credit in the amount of:



A. One hundred percent of the tax that would otherwise be due under this Part for each of the first 5 tax years beginning with the tax year in which the taxpayer commences its qualified business activity, as defined in Title 30-A, section 5250-I, subsection 16; and [2005, c. 351, §13 (rpr); §26 (aff).]




B. Fifty percent of the tax that would otherwise be due under this Part for each of the 5 tax years following the time period in paragraph A. [2005, c. 351, §13 (rpr); §26 (aff).]

[2005, c. 351, §13 (amd); §26 (aff).]


2. Apportioned credit in certain circumstances. In the case of a qualified Pine Tree Development Zone business as defined in Title 30-A, section 5250-I, subsection 17 that engages in both qualified and nonqualified business activities in this State, the credit provided for in this section is limited to that portion that is attributable to the qualified business activity. The limitation is calculated by an apportionment. The apportionment is determined by a fraction, the numerator of which is the property value plus the payroll for the taxable year attributed to the qualified business activity of the business and the denominator of which is the statewide property value plus payroll for the taxable year of the business. If the qualified business is a taxable corporation that has affiliated groups, as defined in section 5102, subsection 1-B, engaged in a unitary business, as defined in section 5102, subsection 10-A, the property and payroll values in the State of the unitary affiliated groups must be included in the apportionment fraction. The resulting fraction must be multiplied by the total tax liability otherwise due under this Part of the qualified business and those affiliated groups. If the apportionment provisions of this subsection do not fairly reflect the amount of the credit associated with the taxpayer's qualified business activity, the taxpayer may petition for, or the State Tax Assessor may require, in respect to all or any part of the taxpayer's business activity, the employment of another reasonable method to effectuate an equitable apportionment of the credit associated with the taxpayer's qualified business activity. [2005, c. 351, §14 (rpr); §26 (aff).]


3. Members of pass-through entities. A member of a pass-through entity that is a qualified Pine Tree Development Zone business, as defined in Title 30-A, section 5250-I, subsection 17, is allowed a credit under this section based on the tax due under this Part related to items of income, gain, deduction, loss or other items required to be reported by the pass-through entity to the member. For purposes of this subsection, "pass-through entity" means a corporation that for the applicable tax year is treated as an S corporation under the Code and a partnership, trust, limited liability company or similar entity that for the applicable tax year is not taxed as a C corporation for federal tax purposes; "member" means an individual or other owner of a pass-through entity. [2005, c. 351, §15 (rpr); §26 (aff).]


4. Limitation. The credit provided by this section may not be claimed for tax years beginning on or after January 1, 2019. [2003, c. 451, Pt. NNN, §5 (new); §8 (aff).]


5. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.



A. "Property" means the average value of the taxpayer's real and tangible personal property that is owned or rented and used during the tax period. Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at 8 times the net annual rental rate. The net annual rental rate is the annual rental rate paid by the taxpayer. [2005, c. 351, §16 (new).]




B. "Payroll" means the total amount paid in this State during the tax period by the taxpayer for compensation, including wages, pretax employee contributions made to a benefit package and employer contributions made to an employee benefit package. [2005, c. 351, §16 (new).]

[2005, c. 351, §16 (new).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007 This page created on: 2005-10-01
Title 36 - §5219-X. Biofuel commercial production and commercial use

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219-X. Biofuel commercial production and commercial use

1. Definition. As used in this section, unless the context otherwise indicates, the term "biofuel" means any commercially produced liquid or gas used to propel motor vehicles or otherwise substitute for liquid or gaseous fuels that is derived from agricultural crops or residues or from forest products or byproducts, as distinct from petroleum or other fossil carbon sources. "Biofuel" includes, but is not limited to, ethanol, methanol derived from biomass, levulinic acid, biodiesel, pyrolysis oils from wood, hydrogen or methane from biomass, or combinations of any of the above that may be used to propel motor vehicles either alone or in blends with conventional gasoline or diesel fuels or that may be used in place of petroleum products in whole or in part to fire heating devices or any stationary power device. The biofuel must be offered for sale and income must be derived from the commercial production of biofuel. [2005, c. 330, §3 (amd); §44 (aff).]


2. Credit allowed. A taxpayer engaged in the production of biofuels in the State who has received certification under subsection 4 is allowed a credit against the tax imposed by this Part on income derived during the taxable year from the production of biofuel in the amount of 5¢ per gallon of liquid biofuel or gaseous biofuel with a BTU equivalent to that of one gallon of gasoline that replaces the use of petroleum or liquid fuels derived from other fossil carbon sources. In blends with petroleum or other nonbiofuels, the credit is allowed only on the portion of that blend that the biofuel constitutes. Biofuel for which the credit is allowed must meet state and federal regulatory requirements applicable to the nature and intended use of the fuel produced. [2003, c. 698, §1 (new).]


3. Limitations. A person entitled to a credit under this section for any taxable year may carry over and apply the portion of any unused credits to the tax liability on income derived from the production of biofuel for any one or more of the next succeeding 5 taxable years. The credit allowed, including carryovers, may not reduce the tax otherwise due under this Part to less than zero. [2003, c. 698, §1 (new).]


4. Certification. A taxpayer engaged in the production of biofuels who is claiming a credit under subsection 2 shall provide information to the Commissioner of Environmental Protection regarding the biofuel being produced, including the quantity of biofuel products, the type of forest or agricultural product being utilized, the nature and composition of the biofuel being produced, the proportion and composition of any nonbiofuel with which the biofuel is blended, the BTU equivalent of the biofuel as compared to the BTU value of one gallon of gasoline and the type of application for which it is intended to be used. Upon review of the information, the Commissioner of Environmental Protection shall provide the taxpayer with a letter of certification stating that the biofuel produced during the taxable year is eligible for a tax credit under this section and stating the number of gallons of biofuel produced during the taxable year. [2005, c. 330, §3 (amd); §44 (aff).]


5. Application. This section applies to tax years beginning on or after January 1, 2004. [2003, c. 698, §1 (new).]

The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007 This page created on: 2005-10-01
Title 36 - §5219. Income tax credit for installation of renewable energy systems (REPEALED)

Title 36: TAXATION
Part 8: INCOME TAXES
Chapter 822: TAX CREDITS

§5219. Income tax credit for installation of renewable energy systems (REPEALED)


The Revisor's Office cannot provide legal advice or interpretation of Maine law to the public. If you need legal advice, please consult a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007 This page created on: 2005-10-01