An Act To Promote Research and Development in the State by Increasing and Marketing the Research Expense Tax Credit
Maine Legislature, Session 130, LD 0308
Committee: Taxation
Sponsors: STEWART, HANLEY, POULIOT, BICKFORD, CARMICHAEL, COLLINGS
Amends: 36 MRSA §5219-K

Legislative Document
No. 308
S.P. 134
In Senate, February 8, 2021
An Act To Promote Research and Development in the State by 
Increasing and Marketing the Research Expense Tax Credit
Received by the Secretary of the Senate on February 4, 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 STEWART of Aroostook.
Cosponsored by Representative HANLEY of Pittston and
Senator: POULIOT of Kennebec, Representatives: BICKFORD of Auburn, CARMICHAEL of 
Greenbush, COLLINGS of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-K, sub-§1, as amended by PL 2007, c. 627, §91, is further 
amended to read:
1.  Credit allowed.  A taxpayer is allowed a credit against the tax due under this Part 
equal to the sum of 5% 10% of the excess, if any, of the qualified research expenses for the 
taxable year over the base amount and 7.5% 15% of the basic research payments 
determined under the Code, Section 41(e)(1)(A).  The term "base amount" means the 
average amount per year spent on qualified research expenses over the previous 3 taxable 
years by the taxpayer.  As used in this section, unless the context otherwise indicates, the 
terms "qualified research expenses," "qualified organization base period amount," "basic 
research" and any other terms affecting the calculation of the credit have the same meanings 
as under the Code, Section 41, but apply only to expenditures for research conducted in 
this State.  In determining the amount of the credit allowable under this section, the State 
Tax Assessor may aggregate the activities of all corporations that are members of a 
controlled group of corporations, as defined by the Code, Section 41(f)(1)(A) and in 
addition may aggregate the activities of all entities, whether or not incorporated, that are 
under common control, as defined by the Code, Section 41(f)(1)(B).
Sec. 2.  36 MRSA §5219-K, sub-§3, as amended by PL 2007, c. 627, §92, is further 
amended to read:
3.  Limitation on credit allowed.  The credit allowed under this section is limited to 
100% of a corporation's first $25,000 $50,000 of tax due, as determined before the 
allowance of any credits, plus 75% of the corporation's tax due, as determined in excess of 
$25,000 $50,000.  The assessor shall adopt rules similar to those authorized under the Code, 
Section 38(c)(5)(B) for purposes of apportioning the $25,000 $50,000 among members of 
a controlled group.
Sec. 3.  Appropriations and allocations.  The following appropriations and 
allocations are made.
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Research Expense Tax Credit Marketing Fund N348
Initiative: Provides ongoing funds to advertise and market the research expense tax credit 
under the Maine Revised Statutes, Title 36, section 5219-K.
GENERAL FUND
2021-22
2022-23
All Other
$100,000
$100,000
__________
__________
GENERAL FUND TOTAL
$100,000
$100,000
SUMMARY
This bill increases the research expense tax credit by doubling the expenditures eligible 
for the credit and the maximum amount of the credit that may be claimed.  The bill also 
provides ongoing funds of $100,000 per year beginning in fiscal year 2021-22 to the 
Department of Economic and Community Development to advertise and market the 
research expense tax credit.