Maine R&D Tax Credit Summary

Maine R&D Tax Credit, R&D Tax Credit

Maine State R&D Tax Credits

In Maine, two credits are available to taxpayers who have incurred certain research expenses: the research expense tax credit and the super research and development credit.

Maine State Research Expense Tax Credit

Refundable Tax Credit – No

  • The research expense tax credit is allowed against Maine’s corporate income tax liability equal to the sum of 5% of the excess of qualified research expenses for the tax year over the base amount, and
  • 7.5% of the basic research payments determined under IRC § 41 (e)(1)(a)
  • A limitation exists so that the entity’s Maine corporate income tax cannot be reduced below zero
  • Taxpayers that qualify for the research expenses credit above may also qualify for an additional credit, the super research and development credit, against Maine corporate income tax liability

How to obtain the credit? 

Research Expense Tax Credit Worksheet


Maine State Super R&D Credit

Refundable Tax Credit – No

  • The credit is equal to the excess of qualified research expenses for the taxable year for the tax year over the super credit base amount, which is the average amount spent on qualified research expenses by the taxpayer in the three taxable years immediately preceding January 1, 1998, increased by 50%
  • The credit is limited to 50% of the entity’s Maine corporate income tax due after the allowance of all other available credits

Carryforward

Effective on or after January 1, 2014, a taxpayer may carry forward a portion of any unused credit, not to exceed 25% of the taxpayer’s tax due after the allowance of any other credits.

How to obtain the credit? 

TBD

Find out if you qualify for the R&D tax credit

 

SELL YOUR NOL’s AND R&D CREDITS

If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
FIND OUT MORE TODAY

 

States Offering R&D Credit:

                             States Without R&D Credit

Alabama
District of Columbia
Missouri
Montana
Nevada
Oklahoma
South Dakota
Tennessee
Washington
West Virginia
Wyoming