An Act To Improve the Maine Seed Capital Tax Credit Program
Maine Legislature, Session 129, LD 0483
Committee: Taxation
Sponsors: POULIOT, HUBBELL, DOW, FOLEY, HERBIG, LIBBY, GATTINE
Amends: 10 MRSA §1100-T

Legislative Document
No. 483
S.P. 148
In Senate, January 31, 2019
An Act To Improve the Maine Seed Capital Tax Credit Program
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator POULIOT of Kennebec.
Cosponsored by Representative HUBBELL of Bar Harbor and
Senators: DOW of Lincoln, FOLEY of York, HERBIG of Waldo, LIBBY of Androscoggin, 
Representative: GATTINE of Westbrook.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA §1100-T, sub-§2, ¶B, as amended by PL 2013, c. 438, §3, is 
further amended to read:
B.  The Maine business must be determined by the authority to be a manufacturer or a 
value-added natural resource enterprise; must provide a product or service that is sold 
or rendered, or is projected to be sold or rendered, predominantly outside of the State 
and must maintain more than 50% of its employees in positions within the State; 
must be engaged in the development or application of advanced technologies; or must 
be certified as a visual media production company under Title 5, section 13090-L.  
The business must certify that the amount of the investment is necessary to allow the 
business to create or retain jobs in the State.
Sec. 2.  10 MRSA §1100-T, sub-§2, ¶C, as amended by PL 2003, c. 451, Pt. E, 
§2, is further amended to read:
C.  Aggregate investment eligible for tax credits may not be more than $5,000,000 
$3,500,000 for any one business as of the date of issuance of a tax credit certificate.
Sec. 3.  10 MRSA §1100-T, sub-§2-C, ¶B, as amended by PL 2013, c. 438, §4, 
is further amended to read:
B.  As used in this subsection, unless the context otherwise indicates, "eligible 
business" means a business located in the State that has certified that the amount of 
the investment is necessary to allow the business to create or retain jobs in the State 
and that, as determined by the authority:
(1)  Is a manufacturer or a value-added natural resource enterprise;
(2)  Is engaged in the development or application of advanced technologies;
(3)  Provides a service that is sold or rendered, or is projected to be sold or 
rendered, predominantly outside of the State and maintains more than 50% of its 
employees in positions within the State; or
(5)  Is certified as a visual media production company under Title 5, section 
13090-L.
Sec. 4.  10 MRSA §1100-T, sub-§2-C, ¶C, as enacted by PL 2011, c. 454, §6, is 
amended to read:
C.  Aggregate investment eligible for tax credit certificates, including investments 
under this subsection and under subsection 2, may not be more than $5,000,000 
$3,500,000 for any one eligible business.
Sec. 5.  10 MRSA §1100-T, sub-§4, as amended by PL 2013, c. 438, §5, is 
further amended to read:
4.  Total of credits authorized.  The authority may issue tax credit certificates to 
investors eligible pursuant to subsections 2, 2-A and 2-C in an aggregate amount not to 
exceed $2,000,000 up to and including calendar year 1996, $3,000,000 up to and 
including calendar year 1997, $5,500,000 up to and including calendar year 1998, 
$8,000,000 up to and including calendar year 2001, $11,000,000 up to and including 
calendar year 2002, $14,000,000 up to and including calendar year 2003, $17,000,000 up 
to and including calendar year 2004, $20,000,000 up to and including calendar year 2005, 
$23,000,000 up to and including calendar year 2006, $26,000,000 up to and including 
calendar year 2007 and $30,000,000 up to and including calendar year 2013, in addition 
to which, the authority may issue tax credit certificates to investors eligible pursuant to 
subsections 2, 2-A and 2-C in an annual amount not to exceed $675,000 for investments 
made between January 1, 2014 and December 31, 2014, $4,000,000 for investments made 
in calendar year 2015 and, $5,000,000 each year for investments made in calendar years 
beginning with 2016 to 2019 and $10,000,000 each year for investments made in 
calendar years beginning with 2020.  The authority may provide that investors eligible for 
a tax credit under this section in a year when there is insufficient credit available are 
entitled to take the credit when it becomes available subject to limitations established by 
the authority by rule.  Rules adopted pursuant to this subsection are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A.
SUMMARY
This bill increases the total annual aggregate amount of credits that may be issued 
under the Maine Seed Capital Tax Credit Program from $5,000,000 to $10,000,000, 
decreases the total aggregate credits that may be authorized for any one business from 
$5,000,000 to $3,500,000 and requires that eligible businesses that provide a product or 
service that is sold or rendered predominantly outside the State maintain more than 50% 
of their employees in positions within the State.