Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 307 - MAINE SEED CAPITAL TAX CREDIT PROGRAM-Amendment 9 › Section 457-307-4 - Issuance of Certificates

Current through 2024-29, July 17, 2024
The Chief Executive Officer shall administer the program and
				  may issue certificates upon a determination that the requirements of this rule
				  are met, subject to the following limitations:
A. Subject to Section 3- A(F), a certificate
				may be issued in an amount not more than 30% of the amount of cash actually
				invested in the business or fund for any investment made in a business prior to
				July 1, 2000; not more than 40% for investments made after July 1, 2000 (August
				11, 2000 for investments in funds) but prior to July 1, 2002; not more than 60%
				of the amount of cash actually invested after July 1, 2002 but before January
				1, 2012 in a business located in an high unemployment area; not more than 40%
				of the amount of cash actually invested after July 1, 2002 but before January
				1, 2012 in all other businesses; not more than 60% for all investments in
				eligible businesses (including investments made through flow-through entities,
				but not including investments via a private venture capital fund) on or after
				January 1, 2012 but before January 1, 2014; not more than 50% for all
				investments in eligible businesses via a private venture capital fund on or
				after January 1, 2012 but before April 1, 2020; not more than 50% for all
				investments made by investors other than private venture capital fund on or
				after January 1, 2014 but before April 1, 2020; and not more than 40% for all
				investments made on or after April 1, 2020.
B. An investor may apply for a tax credit for
				an investment of no more than an aggregate of $500,000 in any one business
				(whether directly or via a flow-through entity, fund or private venture capital
				fund) in any consecutive three (3) - year period, provided that the investor
				may invest more than $500,000 in the business or fund in any consecutive three
				(3) - year period, but shall not be entitled to a certificate with respect to
				any investment in excess of an aggregate of $500,000 in such period. A private
				venture capital fund applying for a tax credit shall be limited to a $500,000
				maximum total investment per company in any consecutive three (3) - year
				period, unless it certifies that it is a flow-through entity (as defined in
				section 1(E-2) of this rule, but without giving effect to the last sentence of
				such section), that the aggregate investment of such private venture capital
				fund when divided by the number of members, partners, stockholders, equity
				owners or beneficiaries, results in a number which is $500,000 or less, that no
				such parties shall be distributed credits or the benefits of credits
				attributable to more than $500,000 per company, and that no more than
				$3,500,000 of investments made in any eligible company by a private venture
				capital fund shall be entitled to credits. No investor is entitled to a
				certificate for an investment already made in any business or fund prior to the
				date an application or notice that an application is being prepared is received
				by the Authority.
C. Certificates
				issued with respect to investments in any one business may not exceed an
				aggregate of $3,500,000 in investment(s), regardless of whether said
				investments are made directly or via a fund, flow-through entity or Private
				Venture Capital Fund. Certificates issued with respect to investments in any
				one business may not exceed $2,000,000 in investment for any calendar
				year.
D. Except as provided below
				for applications attributable to certain 2014 and 2015 investments made by
				certain funds, applications will be processed in the order received. The
				Authority will not issue certificates aggregating more than the amount of tax
				credit certificates authorized by applicable law. Applications received on the
				same day shall, if approved, be awarded credits on a pro rata basis if there
				are insufficient credits remaining available to award the full amount requested
				to all approved applications received on such day. Beginning on January 1,
				2014, only investments made in a calendar year are eligible for credits
				authorized for such year, provided however, for credits authorized for calendar
				year 2014, only investments made on or after the effective date of PL 2013
				Ch.438 (the "2014 Effective Date"), but on or before December 31, 2014 shall be
				eligible for credits for such year, unless such investments are made by a fund
				that received a partial Program credit under Section 3- A(F) prior to January
				1, 2014 ("Grandfathered Funds"), in which case the investment can be made at
				any time during calendar year 2014. For credits authorized for calendar year
				2014 and calendar year 2015, Grandfathered Funds shall have priority for the
				remainder of their Program credit over all other applications for credits for
				such year. $310,000 of credits authorized for 2014 shall be reserved for
				Grandfathered Funds by the Authority, with the reserved amounts being available
				first to Grandfathered Funds that meet all the requirements of this Rule, and
				who provide proof of required investments to the Authority within 30 days of
				the investment. The reserved amount for 2014 shall be reduced by any credits
				awarded to such Grandfathered Funds on or after January 1, 2014, and absent
				proof of eligible 2014 investments by such Grandfathered Funds by January 31,
				2015, any remainder of the 2014 reservation shall lapse and be available for
				other eligible 2014 investments, to be awarded on a first-come, first-served
				basis, provided however, no applications for 2014 credits will be accepted by
				the Authority other than those of Grandfathered Funds, prior to the 2014
				Effective Date. The Authority shall reserve the lesser of (a) $310,000 less the
				amount of credits awarded to Grandfathered Funds for 2014, or (b) $235,000, for
				credits authorized for 2015 with the reserved amounts being available first to
				Grandfathered Funds that meet all the requirements of this Rule, and who
				provide proof of required investments to the Authority within 30 days of the
				investment. The reserved amount for 2015 shall be reduced by any credits
				awarded to such Grandfathered Funds for investments made on or after January 1,
				2015, and absent proof of eligible 2015 investments by such Grandfathered Funds
				by March 31, 2015, any remainder of the 2015 reservation shall lapse and be
				available for other eligible 2015 investments, to be awarded on a first come
				first served basis.
For investors other than Grandfathered Funds, the Authority
				  will accept applications for 2015 tax credits in calendar year 2014 (but
				  following the Effective Date), and will reserve up to $1,000,000 in 2015 tax
				  credits for investments that meet the following criteria:
(a) the investment is made in the form of a
				convertible loan (convertible to equity) funded in 2014;
(b) the loan is converted to an eligible
				equity investment on or after January 1, 2015, and on or before January 31,
				2015;
(c) proof of the conversion is
				provided to the Authority on or before February 28, 2015. Completed
				applications for this specific reservation of 2015 credits will be accepted on
				a first-come, first-served basis, but will not be deemed complete and will not
				be considered eligible for a reservation until proof of funding of the
				convertible loan is provided to the Authority. Any 2015 credits so reserved,
				but not awarded to investors meeting the requirements of this paragraph shall
				lapse, and be available to other 2015 investments on a first-come, first-served
				basis.