Maine Seed Capital Investment Tax Credit

Seed Capital Investment Tax Credit
2023 Seed Capital Credit Worksheet
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Seed Capital Investment Tax Credit
Worksheet for Tax Year 2023
36 M.R.S. § 5216-B

Enclose with Form 1040ME, Form 1041ME, or Form 1120ME.
Note: If you are a private venture capital fund claiming this credit, email Maine Revenue Services at corporate.tax@maine.
gov for special instructions. For private venture capital funds, the credit may be claimed in the calendar year following the
year during which the investment was made.
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. Enter name and ID number of the entity on the lines below. Also enter your ownership percentage
in the pass-through entity for the tax year. Attach a copy of the federal Schedule K-1 issued to you by the pass-through
entity.

			Ownership
	
Name of Pass-through Entity	
EIN/SSN	
Percentage
________________________________________________ 	

________________________ 	

_____________ %

Name of business invested in: _____________________________________________________________
1.	 Investment credit certificate amounts for investments made January 1, 2020 through
	
December 31, 2020.________________________ X .25 (attach copy of certificate)................................1.______________________
2.	 Investment credit certificate amounts for investments made January 1, 2021 through
	
December 31, 2021.________________________ X .25 (attach copy of certificate)................................2.______________________
3.	 Investment credit certificate amounts for investments made January 1, 2022 through
	
December 31, 2022.________________________ X .25 (attach copy of certificate)................................3.______________________
4.	 Investment credit certificate amounts for investments made January 1, 2023 through
	
December 31, 2023.________________________ X .25 (attach copy of certificate)................................4.______________________
5.	 Current year credit (add lines 1 through 4)...............................................................................................5.______________________
6.	 Unused credit amounts carried forward to 2023. Enter amount from 2022 Seed Capital
	
Investment Tax Credit worksheet, line 10 .................................................................................................6.______________________
7.	 Total credit available this year (add lines 5 and 6)....................................................................................7.______________________
8.	 Tax before credits (Form 1120ME, line 6c; Form 1040ME, line 22; or Form 1041ME, line 4 plus
	
Schedule A, line 1) X .50 ..........................................................................................................................8.______________________
9.	 Credit amount: Enter the smaller of line 7 or line 8 (enter here and on Form 1120ME, Schedule C,
	
line 1a; Form 1040ME, Schedule A, line 13; or Form 1041ME, Schedule A, line 8).................................9.______________________
10.	 Carryover to next year (see instructions)................................................................................................10.______________________
11.	 Amount of credit available for future years relating to credit certificates issued for eligible
	
investments made in 2023.
	
a.	 2024 (line 4 above)........................................................................................................................11a.______________________
	

b.	 2025 (line 4 above)........................................................................................................................11b.______________________

	

c.	 2026 (line 4 above)........................................................................................................................11c.______________________

12. Recapture
	
a.	 The amount of the original credit certificate revoked by FAME......................................................12a.______________________
	
b.	
	
c.	
		
	
	
		

The amount of the original credit certificate not yet claimed as a credit........................................12b.______________________
Recapture amount. Subtract line 12b from line 12a. Enter amount here. If the amount is
positive, this is the recapture amount. Enter on Form 1120ME, line 6b; Form 1040ME,
line 20a; or Form 1041ME, Schedule A, line 1. If the amount is negative,
this is the amount of credit still available........................................................................................12c.______________________

Unused credit amounts may be carried forward for up to 15 years.

Revised: December 2023

Seed Capital Investment Tax Credit
Worksheet for Tax Year 2023
General Instructions
This credit, administered by the Finance Authority of Maine (“FAME”), is intended for investments in new or recent business
ventures, directly and through private venture capital funds. FAME issues a certificate to investors for up to 40% of the cash
equity they provide to eligible Maine businesses. Investments may be used for fixed assets, research, or working capital.
Twenty-five percent of the authorized credit may be used in each of four tax years beginning with the tax year in which the
investment was made. The credit is limited to 50% of the tax liability of the taxpayer in any one year. Unused credits may be
carried forward for up to 15 years. A copy of the credit certificate must be attached to your tax return. If you have any
questions regarding investments that qualify for the credit, call FAME at 1-800-228-3734. If a credit certificate is revoked by
FAME, a portion of the credit relating to the revoked certificate may be subject to recapture. The recapture amount is equal
to the amount of the credit revoked by FAME minus the amount of the credit not yet taken by the taxpayer. The recapture
amount is included as an additional tax on the Maine return. For details, see 10 M.R.S. § 1100-T and 36 M.R.S. § 5216-B
and FAME rules, Chapter 307. For more information, visit the FAME website at www.famemaine.com.
An aggregate investment up to $3,500,000 per business is eligible for the seed capital investment tax credit (not more than
$2,000,000 in any calendar year). The investment must be at risk for five years. An investor must own less than 50% of the
business and immediate relatives of principal owners of a business being invested in are not eligible for a credit. An eligible
investment is an investment in a business that:
a)	 Is located in Maine;
b)	 Has gross sales of $5,000,000 or less per year;
c)	 Is the full-time, professional activity of at least one of the principal owners; and
d)	 Is a manufacturer, or a product or service provider with sales derived predominantly from outside the state or
to out-of-state residents, is a producer of value-added natural resource products, is a certified visual media
production company, or is engaged in developing or applying advanced technologies.
In the case of pass-through entities (such as partnerships, LLCs, S corporations, and trusts), the partners, members,
shareholders, beneficiaries, or other owners are allowed a credit in proportion to their respective interests in these entities.

Specific Instructions
Please enter the taxpayer name and employer identification number (“EIN”) or social security number (“SSN”).
Line 6.	

Unused credit amounts carried to 2023. The amount of credit allowed in any one year is limited to 50% of the
tax liability of the taxpayer before credits. The carryover is the portion of the available credit not used in previous
years as a result of this limitation. The carryover period is limited to 15 years. Enter any credits claimed but
unused from the past 15 years on this line. This should be the amount on last year’s credit worksheet, line 10.

Line 10.	

Carryover to next year. Enter the amount on line 7 not used on Form 1120ME, Schedule C, line 1a; Form
1040ME, Schedule A, line 13; or Form 1041ME, Schedule A, line 8. That portion of the unused credit not
exceeding the 15-year carryover period may be claimed on your income tax return next year.

Line 11.	

Amount of credit available for future years. This is a breakdown of the allowable gross credit amounts that may
be claimed in future years relating to credit certificates issued to you by FAME in 2023.

Note: MRS may request additional information supporting the credit claimed before the return can be processed.