Maine Research Expense Tax Credit

Program overview

Maine combines a standard incremental research credit with a super credit for basic research payments made to universities and qualifying research organisations. The credit may offset only a portion of Maine income tax liability in any single year, but the carryforward period is long, so credits generated during heavy research years remain useful as a company matures. Maine follows federal Section 41 definitions with expenses restricted to research conducted in Maine.

Eligibility

Taxpayers with qualified research expenses for research conducted in Maine, and taxpayers making basic research payments to Maine-based research institutions.

Benefits

Non-refundable credit limited to a percentage of Maine income tax liability each year.

Maine IDR questions

What an examiner is likely to ask about this credit. S1–S7 apply to every state claim; the rest come from this program's own rules.

1. S1Confirm the research was physically performed within Maine.
2. S2Provide the Maine qualified research expense calculation and base amount.
3. S3Reconcile Maine expenses to the federal Form 6765.
4. S4Show how wages and supplies were apportioned between Maine and other locations.
5. S5Provide the Maine return and credit schedule for each year claimed.
6. S6Show the carryforward schedule for unused Maine credits.
7. S7Confirm the entity claiming the credit is the entity subject to Maine tax.

Draft questions for illustration, reviewed by a specialist before any engagement.