Maine Amends New Markets Capital Investment Credit

Maine excluded investments that are used to cover “one-day loan” payments from the new markets capital investment credit. The credit can be taken against income and insurance premium taxes. This legislation essentially codifies a Finance Authority of Maine (FAME) regulation.

Credit No Longer Allowed for Certain Investments

Specifically, legislation amends the definition of “qualified low-income community investment” to exclude a capital or equity investment if:

  • it was made after November 9, 2015; and
  • more than 5% of the investment is used for certain purposes.

Those purposes include:

  • refinancing costs, expenses, or other investments by a qualified active low-income community business (or related party) before the date of the investment;
  • making equity distributions from a qualified active low-income community business to its owners;
  • acquiring an existing business or enterprise in Maine; or
  • paying transaction fees.

The legislation making the change was enacted without the governor’s signature.

L.D. 1796 (H.P. 1240), Laws 2018, effective 90 days after adjournment of legislative session

Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.

Not a subscriber? Sign up for a free trial or contact us for a representative.

AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup