Maine R&D Tax Credit Summary

MAINE R&D TAX CREDIT SUMMARY

Maine State R&D Tax Credits

In Maine, two credits are available to taxpayers who have incurred certain research expenses: the research expense tax credit and the super research and development credit.

Maine State Research Expense Tax Credit

  • The research expense tax credit is allowed against Maine’s corporate income tax liability equal to the sum of 5% of the excess of qualified research expenses for the tax year over the base amount, and
  • 7.5% of the basic research payments determined under IRC § 41 (e)(1)(a)
  • A limitation exists so that the entity’s Maine corporate income tax cannot be reduced below zero
  • Taxpayers that qualify for the research expenses credit above may also qualify for an additional credit, the super research and development credit, against Maine corporate income tax liability
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    How to Obtain the Credit?

    Research Expense Tax Credit Worksheet

    Refundable/Transferable Tax Credit – No

    Maine State Super R&D Credit

    • The credit is equal to the excess of qualified research expenses for the taxable year for the tax year over the super credit base amount, which is the average amount spent on qualified research expenses by the taxpayer in the three taxable years immediately preceding January 1, 1998, increased by 50%
    • The credit is limited to 50% of the entity’s Maine corporate income tax due after the allowance of all other available credits

    How to Obtain Credit?

    TBD

    Refundable/Transferable Tax Credit- No

    Carryforward

    Effective on or after January 1, 2014, a taxpayer may carry forward a portion of any unused credit, not to exceed 25% of the taxpayer’s tax due after the allowance of any other credits.

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