An Act To Increase Investment Caps in the Maine Seed Capital Tax Credit Program
Maine Legislature, Session 130, LD 0229
Committee: Taxation
Sponsors: FARRIN, DUCHARME, CURRY, MIRAMANT, POULIOT, TERRY
Amends: 10 MRSA §1100-T

Legislative Document
No. 229
S.P. 97
In Senate, January 27, 2021
An Act To Increase Investment Caps in the Maine Seed Capital Tax 
Credit Program
Received by the Secretary of the Senate on January 25, 2021.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator FARRIN of Somerset.
Cosponsored by Representative DUCHARME  of Madison and
Senators: CURRY of Waldo, MIRAMANT of Knox, POULIOT of Kennebec, Representative: 
TERRY of Gorham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA §1100-T, sub-§2, ¶C, as amended by PL 2019, c. 616, Pt. LL, 
§2, is further amended to read:
C.  Aggregate investment eligible for tax credits may not be more than $5,000,000 for 
any one business as of the date of issuance of a tax credit certificate.  Beginning with 
investments made on or after April 1, 2020 2021, aggregate investment eligible for tax 
credits may not be more than $3,500,000 $6,000,000 for any one business as of the 
date of issuance of a tax credit certificate and not more than $2,000,000 $3,000,000 for 
any calendar year.
Sec. 2.  10 MRSA §1100-T, sub-§2-C, ¶C, as amended by PL 2019, c. 616, Pt. 
LL, §7, is further 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 for any 
one eligible business.  Beginning with investments made on or after April 1, 2020 2021, 
aggregate investment eligible for tax credit certificates, including investments under 
this subsection and under subsection 2, may not be more than $3,500,000 $6,000,000 
for any one eligible business in total and not more than $2,000,000 $3,000,000 for any 
calendar year.
Sec. 3.  10 MRSA §1100-T, sub-§2-C, ¶D, as amended by PL 2019, c. 616, Pt. 
LL, §8, is further amended to read:
D.  The investment with respect to which any private venture capital fund is applying 
for a tax credit certificate may not be more than the lesser of an amount equal to 
$500,000 times the number of investors in the private venture capital fund and an 
aggregate of $4,000,000 in any one eligible business invested in by a private venture 
capital fund in any 3 consecutive calendar years.  For investments made on or after 
April 1, 2020 2021, the investment with respect to which any private venture capital 
fund is applying for a tax credit certificate may not be more than the lesser of an amount 
equal to $500,000 times the number of investors in the private venture capital fund and 
an aggregate of $3,500,000 $6,000,000 in any one eligible business invested in by a 
private venture capital fund.  This paragraph does not limit other investment by an 
applicant for which that applicant is not applying for a tax credit certificate.  A private 
venture capital fund must certify to the authority that it will be in compliance with these 
limitations.  The tax credit certificate issued to a private venture capital fund may be 
revoked and any credit taken recaptured pursuant to Title 36, section 5216‑B, 
subsection 5 if the fund is not in compliance with this paragraph.
SUMMARY
This bill increases the annual cap on eligible investment in any one business eligible 
for the seed capital tax credit from $2,000,000 to $3,000,000 and the aggregate cap on 
eligible investment in any one eligible business from $3,500,000 to $6,000,000.