An Act To Modify the Maine Seed Capital Tax Credit Program
Maine Legislature, Session 124, LD 0175
Committee: Business, Research and Economic Development
Sponsors: RECTOR, CLEARY, AUSTIN, COHEN
Amends: 10 MRSA §1100-T

FIRS'!' REGULAR SESSluN-z009 
Legislative Document 
No. 175 
S.P.61 
January 21,2009 
An Act To Modify the Maine Seed Capital Tax Credit Program 
Submitted by the Finance Authority of Maine pursuant to Joint Rule 204. 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator RECTOR of Knox. 
Cosponsored by Representative CLEARY of Houlton and 
9tf2CJ~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Representatives: AUSTIN of Gray, COHEN of Portland, MacDONALD of Boothbay. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA §1100-T, sub-§2, ~A, as amended by PL 2003, c. 451, Pt. E, 
§ 1, is further amended to read: 
A. A tax credit certificate may be issued in an amount not more than 40% of the 
amount of cash actually invested in an eligible Maine business in any calendar year 
or in an amount not more than 60% of the amount of cash actually invested in any 
one calendar year in an eligible Maine business located in a high unemployment area, 
as determined by rule by the authority Pine Tree Development Zone as defined in 
Title 30-A, section 5250-1, subsection 13. Rules adopted pursuant to this section are 
routine technical rules as defined in Title 5, chanter 375. subchanter 2 A. 
Sec. 2. 10 MRS A §1100-T, sub-§2-A, ~A, as amended by PL 2003, c. 451, Pt. 
E, §4, is further amended to read: 
A. A tax credit certificate may be issued to an individual who invests in a private 
venture capital fund in an amount that: 
(1) 
Is not more than 40% of the amount of cash actually invested in or 
unconditionally committed to a private venture capital fund in any calendar year 
by the individual or entity, except that with respect to fund investments that are 
made in eligible businesses that are located in a high unemployment area Pine 
Tree Development Zone, as determined by rule of the authority under subsection 
set forth in subparagraph (2), the tax credit certificate may not be more than 
60% of the cash actually invested in or unconditionally committed to a private 
venture capital fund in any calendar year by the individual or entity; and 
(2) Does not exceed 40% of the amount of cash invested by the fund in eligible 
businesses, except that with respect to fund investments that are made in eligible 
businesses that are located in a high unemployment area, as determined by rule of 
the authority under subsection 2 Pine Tree Development Zone as defined in Title 
30-A, section 5250-1, subsection 13, a tax credit certificate may not be more than 
60% of the cash invested by the fund in any calendar year in such businesses; 
provided that the. The authority may issue tax credit certificates in an amount 
not to exceed 20% of the amount of cash actually invested in or unconditionally 
committed to a private venture capital fund in any calendar year if the authority 
determines that the private venture capital fund is located in this State, is owned 
and controlled primarily by residents of this State and has designated investing in 
eligible businesses of this State as a major investment objective. The credit may 
be revoked to the extent that the private venture capital fund does not make 
investments eligible for the tax credit in an amount sufficient to qualify for the 
credits within 3 years after the date of the tax credit certificates. Notwithstanding 
any revocation pursuant to this subparagraph, each investor remains eligible for 
tax credit certificates for eligible investments as and when made by the private 
venture capital fund. 
The aggregate amount of credits issued to investors in a fund may not exceed 40% of 
the amount of cash invested by the fund in eligible businesses, except that with 
respect to fund investments in eligible businesses that are located in a high 
) 
) 
) 
() 
t: 
~.'-----/. 
unemployment area Pine Tree Development Zone as set forth in subparagraph (2), the 
aggregate amount of tax credits issued to investors in a fund may not exceed 60% of 
the cash invested by the fund in eligible businesses. 
Sec. 3. 10 MRSA §1100-T, sub-§7 is enacted to read: 
7. 
Rules. 
Rules adopted pursuant to this section are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 4. Application. This Act applies to tax credit certificates issued on or after 
January 1,2010 for investments made on or after January 1,2010 in businesses that file 
their initial application for participation in the Maine Seed Capital Tax Credit Program on 
or after January 1,2010. 
SUMMARY 
This bill modifies the Maine Seed Capital Tax Credit Program administered by the 
Finance Authority of Maine by changing the requirements for increased credits from 
businesses located in high unemployment areas to those located in areas of the State 
classified as Pine Tree Development Zones.