An Act To Create the Savings Account Program for Small Businesses
Maine Legislature, Session 129, LD 1156
Committee: Innovation, Development, Economic Advancement and Business
Sponsors: STEWART, JACKSON, BICKFORD, DILLINGHAM, DUNPHY, STANLEY, WADSWORTH, DILL, DOW, POULIOT
Amends: 36 MRSA §5200-A, 36 MRSA §5219-V

Legislative Document
No. 1156
H.P. 845
House of Representatives, March 7, 2019
An Act To Create the Savings Account Program for Small 
Businesses
Reference to the Committee on Innovation, Development, Economic Advancement and 
Business suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative STEWART of Presque Isle.
Cosponsored by President JACKSON of Aroostook and
Representatives: BICKFORD of Auburn, DILLINGHAM of Oxford, DUNPHY of Old Town, 
STANLEY of Medway, WADSWORTH of Hiram, Senators: DILL of Penobscot, DOW of 
Lincoln, POULIOT of Kennebec.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA c. 110, sub-c. 13 is enacted to read:
SUBCHAPTER 13
SAVINGS ACCOUNT PROGRAM FOR SMALL BUSINESSES
§1100-AA.  Savings Account Program for Small Businesses
The Savings Account Program for Small Businesses is established within and 
administered by the authority to certify corporations that are eligible for tax credits under 
Title 36, section 5219-VV for contributions made to savings accounts. To be eligible for 
certification, corporations must be incorporated in Maine, have no more than 99 
employees, make contributions in accordance with Title 26, section 1221 and provide 
coverage under the Maine Workers' Compensation Act of 1992. To be certified, a 
corporation must demonstrate to the authority that the corporation holds a savings 
account at a financial institution, that the total contributions to the account did not exceed 
$250,000 in the tax year, that any withdrawals from the account were used for business 
purposes and, if applicable, that the corporation has withdrawn all funds from the account 
within one year of dissolution of the business.
The authority shall adopt routine technical rules, as defined in Title 5, chapter 375, 
subchapter 2-A, to implement this section.
Sec. 2.  36 MRSA §5200-A, sub-§1, ¶GG is enacted to read:
GG.  An amount equal to the funds withdrawn from a savings account by a 
corporation certified by the Finance Authority of Maine in accordance with Title 10, 
section 1100-AA.
Sec. 3.  36 MRSA §5219-VV is enacted to read:
§5219-VV.  Savings Account Program for Small Businesses credit
1.  Credit allowed.  A corporation certified by the Finance Authority of Maine under 
Title 10, section 1100-AA is allowed a credit against the tax imposed by this Part of up to 
100% of the amount contributed by the corporation to a savings account in accordance 
with Title 10, section 1100-AA. Only one credit may be claimed on each annual income 
tax return. The credit allowed under this section must be applied after allowance for all 
other eligible credits.
2.  Aggregate limitation.  The total amount of contributions to a savings account that 
may be claimed as a credit under this section in a tax year is limited to $250,000.
3.  Verification of eligibility.  The Finance Authority of Maine shall provide the 
assessor with a list of certified corporations under Title 10, section 1100-AA eligible for a 
credit under this section.
SUMMARY
This bill establishes the Savings Account Program for Small Businesses in the 
Finance Authority of Maine to certify corporations eligible to claim a tax credit for 
contributions made to qualifying savings accounts.  The bill creates the tax credit and 
establishes that withdrawals from the savings accounts are taxable income.