An Act to Create a Refundable Tax Credit for Agricultural
Maine Legislature, Session 132, LD 1699
Committee: Taxation
Sponsors: PLUECKER, TALBOT ROSS
Amends: 10 MRSA §1100-T, 36 MRSA §5216-B

Legislative Document
No. 1699
H.P. 1134
House of Representatives, April 17, 2025
An Act to Create a Refundable Tax Credit for Agricultural 
Enterprises
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PLUECKER of Warren.
Cosponsored by Senator TALBOT ROSS of Cumberland and
Representatives: COOPER of Windham, CRAY of Palmyra, DILL of Old Town, FROST of 
Belgrade, GUERRETTE of Caribou, HEPLER of Woolwich, JACKSON of Oxford, Senator: 
BLACK of Franklin.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA §1100-T, sub-§2, as corrected by RR 2023, c. 2, Pt. C, §11, is 
amended to read:
2.  Eligibility for tax credit certificate for individuals and entities other than 
venture capital funds.  The authority shall adopt rules in accordance with the Maine 
Administrative Procedure Act, Title 5, chapter 375, to implement the program.  Without 
limitation, the requirements for eligibility for a tax credit certificate include the following.
A.  For investments made in tax years beginning before January 1, 2012, 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.  For investments made in tax years beginning on or after January 1, 
2012, a tax credit certificate may be issued to an investor other than a private venture 
capital fund in an amount not more than 60% of the amount of cash actually invested 
in an eligible Maine business in any calendar year.  For investments made in tax years 
beginning on or after January 1, 2014, a tax credit certificate may be issued to an 
investor other than a private venture capital fund in an amount not more than 50% of 
the amount of cash actually invested in an eligible Maine business in any calendar year.  
For investments made on or after April 1, 2020, a tax credit certificate may be issued 
to an investor other than a private venture capital fund in an amount not more than 40% 
of the amount of cash actually invested in an eligible Maine business in any calendar 
year.  For investments made on or after April 1, 2025, a tax credit certificate may be 
issued to an investor other than a private venture capital fund in an amount not more 
than 40% of the amount of cash actually invested in an agricultural enterprise in any 
calendar year.  Rules adopted pursuant to this section are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2‑A.
B.  The Maine business or agricultural enterprise 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, except that, for an agricultural enterprise, the 
product or service may be sold inside or outside of 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 shall 
certify that the amount of the investment is necessary to allow the business to create or 
retain jobs in the State.  The agricultural enterprise shall certify that the amount of the 
investment is necessary to allow the agricultural enterprise to expand its enterprise.
C.  Aggregate investment eligible for tax credits may not be more than $5,000,000 for 
any one business or agricultural enterprise as of the date of issuance of a tax credit 
certificate.  Beginning with investments made on or after April 1, 2020, aggregate 
investment eligible for tax credits may not be more than $3,500,000 for any one 
business as of the date of issuance of a tax credit certificate and not more than 
$2,000,000 for any calendar year. Beginning with investments made on or after April 
1, 2025, aggregate investment eligible for tax credits may not be more than $3,500,000 
for any one agricultural enterprise as of the date of issuance of a tax credit certificate 
and not more than $2,000,000 for any calendar year.  Notwithstanding the other 
provisions of this paragraph, with respect to a business that was approved by the 
authority as an eligible business under this subsection before April 1, 2020, the 
aggregate investment eligible for tax credits may not be more than $5,000,000 for that 
business as of the date of the issuance of the tax credit certificate, and the $2,000,000 
annual limitation does not apply.
D.  The investment with respect to which any individual is applying for a tax credit 
certificate may not be more than an aggregate of $500,000 in any one business or 
agricultural enterprise in any 3 consecutive calendar years, except that this paragraph 
does not limit other investment by any applicant for which that applicant is not applying 
for a tax credit certificate and except that, if the entity applying for a tax credit 
certificate is a partnership, limited liability company, S corporation, nontaxable trust 
or any other entity that is treated as a flow-through entity for tax purposes under the 
federal Internal Revenue Code but not as a private venture capital fund, the aggregate 
limit of $500,000 applies to each individual partner, member, stockholder, beneficiary 
or equity owner of the entity and not to the entity itself.
E.  For investments made in tax years beginning before January 1, 2014, the business 
receiving the investment must have annual gross sales of $3,000,000 or less.  For 
investments made in tax years beginning on or after January 1, 2014, the business or 
agricultural enterprise receiving the investment must have annual gross sales of 
$5,000,000 or less.  The operation of the business or agricultural enterprise must be a 
substantial professional activity of at least one of the principal owners, as determined 
by the authority.  The principal owner and the principal owner's spouse are not eligible 
for a credit for investment in that business, except that this restriction does not apply 
to an agricultural enterprise.  A tax credit certificate may not be issued to a parent, 
sibling or child of a principal owner if the parent, sibling or child has any existing 
ownership interest in the business or agricultural enterprise.
F.  The investment must be expended on plant, equipment, research and development, 
or working capital for the business or such other business activity as may be approved 
by the authority.  For an agricultural enterprise, the investment may also be expended 
on infrastructure, which does not include real estate but includes any improvement that 
expands the marketing, production or processing of agricultural products, as defined in 
Title 7, section 152, subsection 2, as approved by the authority.
G.  The authority shall establish limits on repayment of the investment.  The investment 
must be at risk in the business or agricultural enterprise.
H.  The investors qualifying for the credit must each own less than 1/2 of the business.  
This paragraph does not apply to an agricultural enterprise.
I.  The business or agricultural enterprise receiving the investment may not be in 
violation of the requirements of subsection 7.
Sec. 2.  36 MRSA §5216-B, sub-§2, as amended by PL 2017, c. 170, Pt. E, §3, is 
further amended to read:
2.  Credit.  An investor, including, beginning with tax years beginning on or after 
January 1, 2025, an investor in an agricultural enterprise, is entitled to a credit against the 
tax otherwise due under this Part equal to the amount of the tax credit certificate issued by 
the Finance Authority of Maine in accordance with Title 10, section 1100‑T and as limited 
by this section.  Except with respect to tax credit certificates issued under Title 10, section 
1100‑T, subsection 2‑C, in the case of partnerships, limited liability companies, S 
corporations, nontaxable trusts and any other entities that are treated as flow-through 
entities for tax purposes under the Code, the individual partners, members, stockholders, 
beneficiaries or equity owners of such entities must be treated as the investors under this 
section and are allowed a credit against the tax otherwise due from them under this Part in 
proportion to their respective interests in those partnerships, limited liability companies, S 
corporations, trusts or other flow-through entities.  Except as limited or authorized by 
subsection 3 or 4, 25% of the credit must be taken in the taxable year in which the 
investment is made and 25% per year must be taken in each of the next 3 taxable years.  
With respect to tax credit certificates issued under Title 10, section 1100‑T, subsection 2‑C, 
the credits are refundable and the investor shall file a return requesting a refund for an 
investment for which it has received a tax credit certificate in the calendar year following 
the calendar year during which the investment was made.
SUMMARY
This bill allows an agricultural enterprise to qualify for the Maine Seed Capital Tax 
Credit Program, which provides an eligible business a tax credit for investments in plant, 
equipment, research and development, or working capital for the business or such other 
business activity as may be approved by the Finance Authority of Maine.  The bill allows 
an agricultural enterprise determined eligible by the authority to qualify for a tax credit for 
investments made in infrastructure, not including real estate, but including any 
improvement that expands the marketing, production or processing of agricultural 
products, in addition to the qualifying investments that may be made by a business.