High-Technology Investment Tax Credit Worksheet For Tax Year 2015 36 M.r.s. 5219-M

2015

HIGH-TECHNOLOGY INVESTMENT TAX CREDIT

WORKSHEET INSTRUCTIONS

This credit is available to taxpayers engaged in high-technology activity that purchase and use eligible equipment or that lease eligible

equipment from lessors.

High-technology activity includes the design, creation and production of computer software, computer equipment, supporting

communications components and other accessories that are directly associated with computer software and equipment. High-technology

activity also includes the provision of internet access services and advanced telecommunications services.

Eligible equipment includes computer equipment, electronic components and accessories, communication equipment and computer

software placed in service in Maine. Eligible equipment must be used in a high-technology activity. Equipment used in wire line

telecommunications must be capable of transmitting data at 200 kilobits or more per second in at least one direction to be eligible.

Equipment used in wireless telecommunications must be capable of transmitting data at 42 kilobits or more per second in at least one

direction to be eligible.

For taxpayers that purchase and use eligible equipment, the credit is equal to the investment credit base of eligible equipment that was

placed in service in Maine during the tax year. The investment credit base is the adjusted basis of the equipment on the date that the

equipment was placed in service in Maine for the ﬁ rst time. For purposes of calculating the adjusted basis, depreciation is determined by

multiplying the annual depreciation amount by the percentage relating to the time-of-use in Maine (number of days the equipment was in

service in Maine divided by the total number of days the equipment was in service during the tax year).

Taxpayers that purchase and lease eligible equipment to lessees may claim the credit only if the lessee waives the right to

claim the credit. Whether the credit is claimed by the purchaser or the lessee, the equipment must be eligible equipment used in a high-

technology activity. The credit amount claimed must be net of any lease payments received during the tax year. In order to qualify, the

lessor must derive no more than 1/3 of aggregate lease payments from the eligible equipment and the lease must qualify as a lease for

federal purposes under Revenue Procedure 2001-28.

For taxpayers that lease eligible equipment from a lessor, the credit is equal to the lease payments made on the equipment during the

taxable year. Lessees that sub-lease eligible equipment may claim the credit only if the sub-lessee waives the right to claim the credit.

Whether the credit is claimed by the lessee or sub-lessee, the equipment must be eligible equipment used in a high-technology activity.

If the credit is claimed by the lessee, the credit amount must be net of any lease payments received during the tax year. If the eligible

equipment is depreciable by the lessee or sub-lessee, the credit amount is based on that person’s investment credit base of the eligible

equipment. If the credit is claimed by the lessor, the lessor must derive no more than 1/3 of aggregate lease payments from the eligible

equipment and the lease must qualify as a lease for federal purposes under Revenue Procedure 2001-28.

The credit (including carryforward amounts) is limited to the tax liability of the taxpayer and may not reduce the tax liability of the current

year to less than the tax liability of the previous year after all other credits except the high-technology credit. In addition, the credit may

not be used to reduce the tax liability of the taxpayer by more than $100,000 after the allowance of all other credits except the family

development account reserve fund credit (36 M.R.S. § 5216-C) and the super research credit carry forward amounts (36 M.R.S. § 5219-

L). Unused credit amounts may be carried forward for up to 5 taxable years.

Special rules apply to corporations ﬁ ling combined returns. 36 M.R.S. § 5219-M(6).

In the case of pass-through entities (such as partnerships, LLCs, S corporations and trusts), the partners, members, shareholders,

beneﬁ ciaries or other owners are allowed credits in proportion to their respective interests in these entities.

SPECIFIC LINE INSTRUCTIONS

Enter taxpayer name and employer identiﬁ cation number (“EIN”) or social security number (“SSN”).

Line 1.

Carryforward from previous year. Enter any unused tax credit amounts from previous years. Enclose an explanation or schedule

to verify the amount entered on this line.

Line 2.

Investment credit base for purchased eligible equipment. Enter the investment credit base for eligible equipment placed in

service in Maine during the taxable year. Read the general instructions above before making an entry on this line. Enclose a

schedule listing the eligible equipment used to calculate the investment credit base. Eligible equipment is that purchased and

used by the taxpayer or purchased and leased to lessees, less the lease payments received on the equipment. Note: A lessor is

subject to certain qualiﬁ cations and may claim a credit on leased equipment only if the lessee waives its right to claim the credit.

Line 4.

Lease payments on eligible equipment. Enter lease payments paid on eligible equipment less any lease payments received

on the equipment from sub-lessees. Note: The lessor is subject to certain qualiﬁ cations and may claim a credit on leased

equipment only if the lessee waives its right to claim the credit.

Line 11. The credit is limited to tax liability after credits, except the credit for contributions to family development account reserve funds

under 36 M.R.S. § 5216-C and the super credit for substantially increased research and development carry forward amounts

under 36 M.R.S. § 5219-L.

High-Technology Investment Tax Credit Worksheet For Tax Year 2015 36 M.r.s. 5219-M - Maine Page 2

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