Maine New Markets Capital Investment Credit

New Markets Capital Investment Credit
2023 New Markets Credit Worksheet
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New Markets Capital Investment Credit
Worksheet for Tax Year 2023
36 M.R.S. § 5219-HH

Enclose with Form 1040ME, Form 1041ME, Form 1120ME, or Form INS-4.

For eligible investments made during tax years beginning in 2017 through 2021
Note: You are eligible to claim a New Markets Capital Investment Credit only if you are a holder of a Maine New Markets
Capital Investment Program Tax Credit Certificate issued by the Finance Authority of Maine (“FAME”). Except for credits
carried forward from prior tax years, the certificate must have been issued with respect to a qualified equity investment made
during your tax year beginning in 2017, 2018, 2019, 2020, or 2021 (that is, the 3rd, 4th, 5th, 6th, or 7th credit allowance date
must fall within your tax year beginning in 2023). To claim the credit, you must enclose a copy of the certificate with
the completed credit worksheet.
Taxpayer Name:___________________________________________________ EIN/SSN: ________________________
Note: In the case of pass-through entities (such as partnerships, LLCs, S corporations, and trusts) making eligible
investments, the partners, members, shareholders, beneficiaries, or other owners are allowed a credit in proportion to their
respective interests in these entities or in accordance with an executed written agreement among the owners. Enter the
name and ID number of the entity on the lines below. Also enter your ownership percentage in the pass-through entity, or if
different, your percentage interest in the credit in accordance with an executed written agreement among the owners.
	
	

	
Name of Pass-through Entity	

_____________________________________________ 	

	
EIN/SSN	
_____________________	

Ownership	
Percentage	
________ %	

Credit
Percentage
________ %

Prior Certificate Holder Information (only applicable if a transfer of the Maine New Markets Capital Investment Program
Certificate has occurred; see instructions):
Name of prior certificate holder________________________________________________________________________
EIN of prior certificate holder__________________________________________________________________________
1.	 Purchase price of qualified equity investments made during your tax year beginning in
	
2017, 2018, 2019, and 2020 (see instructions)........................................................................ 1.___________________
2.	 Credit amount (line 1 multiplied by .08)................................................................................... 2.___________________
3.	 Purchase price of qualified equity investments made during your tax year beginning in
	
2021 (see instructions)............................................................................................................. 3.___________________
4.	 Credit amount (line 3 multiplied by .07)................................................................................... 4.___________________
5.	 Credit carried forward from 2022 (2022 credit worksheet, line 8)............................................ 5.___________________
6.	 Credit available this year. Add lines 2, 4, and 5....................................................................... 6.___________________
7.	
	
	
	

Credit claimed this tax year (this amount is refundable; see instructions). Enter the amount
being claimed here and on Form 1040ME, Schedule A, Other Tax Credits Worksheet,
line 2; Form 1041ME, Schedule A, line 3; Form 1120ME, Schedule C, line 2b;
or Form INS-4, line 19.............................................................................................................. 7.___________________

8.	 Credit carried forward to tax year 2024 (line 6 minus line 7)................................................... 8.___________________

Unused credit amounts may be carried forward for up to 20 years.

Revised: December 2023

2023 New Markets Capital Investment Credit
Worksheet Instructions
Note: MRS may request additional information supporting the credit claimed before the return can be processed.
This credit, administered by the Finance Authority of Maine (“FAME”), is for investments in qualified community development
entities that reinvest in certain businesses in eligible low-income communities in Maine. A Maine New Markets Capital
Investment Program Tax Credit Certificate must be issued by FAME. The New Markets Capital Investment Credit allows the
holder/subsequent holder of the certificate to claim, in the aggregate, a 39% Maine tax credit based on the purchase price
of the qualified equity investment. The credit is allocated over 7 tax years based on the credit allowance dates determined
with respect to the date the investment is made. The credit is allocated as follows: 0% for the first two years, 7% for year
3, and 8% each year for years 4 through 7. The credit is fully refundable; however, a person may elect to carry forward any
unused portion of the credit for up to 20 years. For details, see 10 M.R.S. § 1100-Z and 36 M.R.S. § 5219-HH and FAME
rule Chapter 325. For program information, visit the FAME website at www.famemaine.com.
The State Tax Assessor may recapture all or part of the credit allowed (36 M.R.S. § 5219-HH(7)):
A)	 If any amount of the federal tax credit with respect to the investment is recaptured under the Internal Revenue
Code, Section 45D, the Maine recapture is equal to an amount proportionate to the federal recapture amount;
B)	 If the qualified community development entity redeems or makes a principal repayment with respect to the investment
prior to the final credit allowance date, the recapture is proportionate to the amount of the redemption or repayment;
or
C)	 If the qualified community development entity fails to invest at least 85% of the purchase price of the qualified equity
investment in qualified low-income community investments in qualified active low-income community businesses
within 24 months of the issuance of the investment, and maintain that level of investment until the last credit
allowance date, the State Tax Assessor may fully recapture the credit allowed.
The qualified community development entity will have 90 days to resolve any deficiency identified in a recapture notice
issued by FAME. If the deficiency is not resolved within 90 days, Maine Revenue Services will issue a final order of recapture.

Specific Instructions
Transfer Information. If you, the holder of the Maine New Markets Capital Investment Program Tax Credit Certificate,
are not the original investor, enter the name and EIN of the prior holder of the certificate. For more information on
transfers, see 10 M.R.S. § 1100-Z(3)(G).
Line 1.	 Enter on this line the amount of qualified equity investments (“QEI”) made during your tax year beginning in 2017,
2018, 2019, and 2020. This amount is reflected on the Maine New Markets Capital Investment Program Tax Credit
Certificate issued by FAME. Enter the total of all certificates that apply and enclose a copy of each certificate with
your return. Owners of pass-through entities must limit the amount on line 1 to their ownership percentage in the
entity or, if applicable, their percentage interest in the credit in accordance with an executed agreement among the
owners.
	
Line 3.	 Enter on this line the amount of the qualified equity investment (“QEI”) made during your tax year beginning in 2021.
This amount is reflected on the Maine New Markets Capital Investment Program Tax Credit Certificate issued by
FAME. Enter the total of all certificates that apply and enclose a copy of each certificate with your return. Owners
of pass-through entities must limit the amount on line 3 to their ownership percentage in the entity or, if applicable,
their percentage interest in the credit in accordance with an executed agreement among the owners.
Note: 	 Do NOT enter on lines 1 or 3 the amount of investments made during tax years beginning in 2022 and 2023.
Investments made during tax years beginning in 2022 and 2023 will first qualify for credit amounts during
tax years beginning in 2024 and 2025.
Line 7.	 Enter the credit amount being claimed this year. Any amount on line 7 in excess of the Maine tax liability will be
refunded.
Line 8.	 Credit carried forward. Any unused portion of the credit may be carried forward for up to 20 years.