Maine Seed Capital Investment Tax Credit Worksheet For Tax Year 2015 (Page 2 of 2) in pdf

2015

SEED CAPITAL INVESTMENT TAX CREDIT

WORKSHEET 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 certiﬁ cate to investors for up to 50% of the cash equity they provide

to eligible Maine businesses. Investments may be used for ﬁ xed assets, research or working capital. 25% 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 certiﬁ cate 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 certiﬁ cate is revoked by FAME, a portion of the credit relating to the revoked certiﬁ cate 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 web site at

An aggregate investment up to $5,000,000 per business is eligible for the seed capital investment tax credit. The investment must be at

risk for ﬁ ve 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:

Is located in Maine;

Has gross sales of $5,000,000 or less per year;

Is the full-time, professional activity of at least one of the principal owners; and

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 certiﬁ ed 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,

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

SPECIFIC LINE INSTRUCTIONS

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

Line 6. Unused credit amounts carried to 2015. 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 or Form 1040ME, Schedule A or

Form 1041ME, Schedule A. 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 certiﬁ cates issued to you by FAME in 2015.

Maine Seed Capital Investment Tax Credit Worksheet For Tax Year 2015 Page 2