Bill > LD926

This bill amends Maine's Research Expense Tax Credit to enhance support for research and development in the state by making several key changes. The legislation doubles the tax credit percentage from 5% to 10% for qualified research expenses and from 7.5% to 15% for basic research payments, while also reducing the base amount calculation to 50% of the average research expenses over the previous 3 years. The maximum credit limit is increased from $25,000 to $50,000, allowing corporations to claim more tax credits for their research investments. Additionally, the bill introduces new annual reporting requirements, mandating that the State Tax Assessor provide detailed information to the Department of Economic and Community Development about research expenditures, credit claims, and industry sector impacts. The bill also establishes a comprehensive evaluation framework that requires legislative review of the tax credit, focusing on performance measures such as research investment growth, job creation, employee wage levels, and overall economic impact. The goal is to stimulate research and development in Maine, create high-quality jobs, and improve the state's economic competitiveness by providing more substantial tax incentives for businesses investing in innovative research activities.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=926&snum=132