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Maine Basic Business Taxes 2012

Maine's economic development, finance, and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include a corporate income tax, sales and use tax, and a railroad tax.

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Industrial machinery and equipment:
Manufacturing machinery and equipment are exempt from sales and use taxes. Aircraft and boats sold to nonresidents, various railroad rolling stock, aircraft and watercraft placed in use in interstate commerce, and trucks and trailers manufactured in the state and purchased by a nonresident are also exempt from sales and use taxes.

Industrial fuels and raw materials:
Raw materials are exempt from sales and use tax. Industrial fuels are 95 percent exempt. The remaining 5 percent is subject to a tax of 5 percent.

Mining property:
Mines of gold, silver, or base metals, when opened and in the process of development, are exempt from property taxes for 10 years.

Seed capital tax credit:
The Seed Capital Tax Credit Program encourages investment in startup businesses by providing investors with an income credit of 40 percent of investment in qualified Maine businesses. Credits must be used over a four-year period and cannot exceed 50 percent of annual tax liability.

Dependent health benefits credit:
The credit applies to employers employing fewer than five employees and offering a qualified health benefit plan to all low-income employees and paying at least 80 percent of the costs for employees and at least 60 percent of the costs for children under 19 who are dependents of employees. The credit is equal to the lesser of 20 percent of the dependent health benefits paid or $125 per employee with dependent health-benefits coverage.

Employer-provided long-term care benefits credit:
The credit applies to employers that provide long-term care policy coverage as part of a benefits package. It is equal to the lesser of $5,000, 20 percent of the cost, or $100 per employee covered. For tax years beginning on or after January 1, 2000, employers are eligible for the credit if the policy on which premiums are paid meets the federal definition of a qualified long-term care insurance contract.

Employer-assisted daycare credit:
Employers providing daycare services for their employees through direct capital/personnel expenditures or subsidizing a licensed center can receive an income tax credit of up to $5,000. If the daycare services provided constitute quality childcare as certified by the Maine Department of Human Services, the maximum available credit increases to $10,000. Corporate taxpayers making certified investments in quality child-care services qualify for a credit up to 30 percent or $30,000.

High technology investment tax credit:
The credit is available to eligible businesses that are primarily engaged in high-tech activities and that purchase and use eligible equipment in primary high-tech activities.

Maine State Contact:
Maine Department of Economic and Community Development
59 State House Station
Augusta, ME 04333-0059
(207) 624-9800

Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.