Maine Jobs And Investment Tax Credit Worksheet For Tax Year 2015 (Page 2 of 2) in pdf

2015

JOBS AND INVESTMENT TAX CREDIT

WORKSHEET INSTRUCTIONS

This credit is based on the qualiﬁ ed federal investment credit as it existed in IRC § 38(b)(1), as of December 31, 1985 that is directly and solely

attributable to a qualiﬁ ed investment in Maine. A qualiﬁ ed investment generally consists of new or used tangible personal property (other than air

conditioning or heating units) and certain other tangible property (not including a building and its structural components) that is depreciable and

that is used as an integral part of manufacturing, production or extraction, or property that is related to furnishing transportation, communications,

electrical energy, gas, water or sewage disposal services. Other property such as certain research facility property, elevators and escalators,

agricultural structures and certain rehabilitated property, timber property and storage facilities may also be considered qualiﬁ ed investments.

Public utilities may not claim this credit. Retail facilities may not claim this credit unless it can be shown that the investment will not adversely

affect existing businesses in Maine.

For purposes of the Maine credit, a qualiﬁ ed investment of at least $5 million must be made in new or used property located in Maine. Used

property is deﬁ ned as property originally placed in service by the taxpayer outside Maine. For used property, the basis is the adjusted basis (using

straight-line depreciation) to account for the period of time the property was used outside Maine.

The qualiﬁ ed federal credit is equal to a percentage of the qualiﬁ ed federal investment. The percentage is dependent on the type of property

placed in service. Generally, two federal rates apply: the regular percentage (10%) and the rehabilitation percentage (20% for rehabilitation of

certiﬁ ed historic structures, 10% for qualiﬁ ed rehabilitation of a building other than a certiﬁ ed historic structure).

To be eligible to claim this credit, a taxpayer must add at least 100 new jobs within two years of the qualiﬁ ed investment. The new jobs must have

a new jobs credit base of at least $1,200,000 for the taxable year or for either of the next two calendar years.

The Maine credit used in any one year is limited to the lesser of $500,000 or the regular income tax liability of the taxpayer. Any unused credit

amounts may be carried over for an additional six years for a maximum credit of $3.5 million. Recapture provisions apply for qualiﬁ ed investments

disposed of prior to the end of its useful life. Special provisions apply to corporations that are members of an afﬁ liated-unitary group. Businesses

cannot receive both this credit and beneﬁ ts from the Employment Tax Increment Financing Program, 36 M.R.S. §§ 6751-61, in the same tax year.

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

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

Part 1

Line 1.

Qualiﬁ ed Investment. Enter the federal qualiﬁ ed investment made during the taxable year attributable to property located in Maine.

Must be at least $5,000,000. (NOTE: If less than $5,000,000 there is no credit.) See general instructions above for a description of

property constituting a qualiﬁ ed investment.

Line 2.

The qualiﬁ ed federal credit is determined by application of the IRC of 1954, §§ 38, 46 and 48 as of December 31, 1985. The

amount entered on this line must be attributable to property (qualiﬁ ed investment) located in Maine. In addition, the taxpayer must

meet the criteria contained in Part 2 in order to claim a credit amount on this line. Attach a schedule itemizing the qualiﬁ ed investment

by property type and applicable federal percentage for purposes of the qualiﬁ ed federal investment credit as it existed in the IRC of

1954, § 38(b)(1), as of December 31, 1985. Indicate whether the property was new or used when placed in service in Maine. For used

property, attach a schedule showing depreciation for use of the property outside Maine.

Line 3.

Carryover from prior year. The credit is limited to the tax liability of the taxpayer. Any unused credit amount resulting from this

limitation or the $500,000 limitation may be carried forward for up to six years, except that in no event may a credit (including

carryover) relating to a qualiﬁ ed investment be claimed for more than seven years. Enter the allowable carryforward amount on this

line. Provide a schedule showing your entry on this line.

Part 2

Complete Part 2A to verify that 100 new jobs, with a credit base of at least $1,200,000, were created relative to the qualiﬁ ed investment on line

1. If line 10 is not at least $1,200,000, you are not eligible to take the credit at this time, but may qualify if the new jobs credit base requirement is

met in 2016 or 2017 (see the instructions for Line 9 below). Complete Part 2B to show that the 100 new jobs relative to the qualiﬁ ed investment

on line 1 were created within 2 years of the date that the qualiﬁ ed investment was placed in service in Maine.

Line 9.

Enter the unemployment compensation wages from the year in which the 100 employee new job credit base is reached. For

investments placed in service in 2015, this may be the unemployment compensation wages from 2015, 2016 or 2017. The applicable

wage base is entered on line 9 of the worksheet for the year of investment. If the new jobs credit base is reached in an allowable year

subsequent to the investment year, an amended income tax return, for the year of investment, must be ﬁ led.

Maine Jobs And Investment Tax Credit Worksheet For Tax Year 2015 Page 2

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