Maine Research Expense Tax Credit

Program Overview

Maine provides a research tax credit based on qualifying incremental research expenses and a separate enhanced credit for certain basic research payments made to eligible universities and research organizations. The credit may be limited to a specified portion of Maine income tax liability in a given year, with unused amounts subject to applicable carryforward rules. Qualified research expenses are generally subject to Maine-specific requirements, including rules concerning where the research is conducted.

Eligibility

• Taxpayers with qualified research expenses for research conducted in Maine may qualify for the applicable research credit.
• Taxpayers making eligible basic research payments to qualifying Maine-based universities or research organizations may qualify for the applicable credit.
• Research expenses and basic research payments must meet the applicable Maine requirements.
• Qualified research is generally determined using the applicable federal Section 41 definitions, subject to Maine-specific rules.

Benefits

• Non-refundable tax credit against Maine income tax liability.
• Credit may be limited to a specified percentage of Maine income tax liability for a given year.
• Unused credits may be carried forward for the applicable period, subject to Maine rules.
• Separate treatment may apply to qualifying basic research payments made to eligible research institutions.