Form 1120b-Me - Maine Franchise Tax Return For Financial Institutions

SPECIFIC INSTRUCTIONS (continued)

Line 3. Tax:

A ﬁ nancial institution must, each year, elect the tax

credits used to reduce tax liability cannot exceed the total tax

formula they wish to apply by placing an “x” in the appropriate

liability on line 3c.

box. Maine offers two tax formula options:

• Maine Seed Capital Tax Credit, for an investment certiﬁ ed by

Option 1 - The sum of 1% of the ﬁ nancial institution’s Maine

FAME in a business you do not own • Jobs and Investment Tax

net income plus .008% of its Maine assets.

Credit, for creation of 100 jobs and investment of $5 million •

Employer credits for payment of employee expenses (long-term

Option 2 - .039% of the ﬁ nancial institution’s Maine assets.

care insurance, day care expenses, dependent health beneﬁ ts)

Line 3a. Tax on Maine Net Income:

The tax rate on income is

• Quality Child Care Investment Tax Credit, for DHHS-certiﬁ ed

1% (0.01) of Maine net income as listed on line 1b. Leave this

investments in child care facilities • Biofuel Production and

line blank if option 2 is elected.

Use Tax Credit, for DEP-certiﬁ ed production of non-fossil fuels

• Research Expense and Super Research/Development Tax

Line 3b. Tax on Maine Assets.

If option 1 is selected, the

Credits, for business investment in research and development •

franchise tax rate on Maine assets listed on line 2b is 8 cents

High-Technology Investment Tax Credit, for business investment

(8¢) per $1,000 (0.008%). If option 2 is selected, the franchise

in computer equipment or other high technology activities

tax rate on Maine assets listed on line 2b is 39 cents (39¢) per

• Credit for Dependent Health Beneﬁ ts Paid • refundable

$1,000 (0.039%). Apply the appropriate factor and enter the

Historic Rehabilitation Credit, for state-authorized renovations

result on this line.

of registered historic structures • Nonrefundable Historic

Line 4b. Withholding.

Enter on this line the amount of Maine

Rehabilitaiton Credit for properties placed in service prior to

income tax withholding credit for the year. For example, enter

2008 • Family Development Account Credit, for contributions

pass-through entity withholding reported to you on 2012 Forms

to the FAME-authorized fund • Pine Tree Development Zone

1099ME.

Credit, for expansion of business in Maine certiﬁ ed by DECD

Line 4c. Paid with Original Return.

This line is for taxpayers

• Employer Credit for Educational Opportunity, for employers

ﬁ ling amended returns and claiming credit for tax paid with

paying student loans of qualifying employees • Maine Capital

original return.

Investment Credit for investment in depreciable property in

Maine.

Line 4d. Net Operating Loss Credit:

A credit is allowed

against franchise tax on assets for a taxable entity that sustains

Line 4f. Total Prepayments and Credits:

Enter the total

a book net operating loss. The credit is computed by multiplying

payments from lines 4a, 4b and 4c as well as any tax credits

the book net operating loss by the franchise tax rate on income

from lines 4d and 4e. The amount entered on line 4f may

(0.01). The amount of the credit allowed in the year of the loss

exceed the total tax liability on line 3c. However, except for

is limited to the franchise tax on assets on line 3b. Excess credit

the refundable Historic Rehabilitation Credit, the amount of tax

amounts may be carried forward to the next ﬁ ve tax years and

credits from lines 4d and 4e that are used to reduce tax liability

may be applied against the total tax on line 3c. If you carry

this year cannot exceed the total tax liability on line 3c.

forward an excess credit from a previous year, attach a carry

Line 5b. Penalty for Underpayment of Estimated Tax:

forward schedule to support your entry on line 4d.

the ﬁ nancial institution underpaid estimated tax, complete and

Line 4e. Tax Credits.

A list of allowable tax credits follows.

attach Form 2220ME, available at

You must complete and attach a tax credit worksheet for each

forms.

tax credit claimed. Tax credit worksheets are available at

www.

Line 7a. Credited to next year’s estimated tax:

Use this line

maine.gov/revenue/forms.

You may also order worksheets

only if you elect to have all or a portion of the overpayment on

by telephone by calling (207) 624-7894. Enter on line 4e the

line 6 credited to next year’s estimated Maine franchise tax.

total amount of credit used to reduce tax liability. Except for

Line 7b. Refunded:

Enter here the difference between lines 6

the refundable Historic Rehabilitation Credit, the amount of all

and 7a. Refunds will be mailed to you.

IMPORTANT

IF ALL REQUIRED LINES AND SCHEDULES (INCLUDING FORM CRB) ARE NOT COMPLETED, THE RETURN

IS INCOMPLETE AND WILL NOT BE CONSIDERED A FILED RETURN. PAGES 1 - 5 OF THE FEDERAL RETURN

MUST BE ATTACHED TO YOUR MAINE FRANCHISE RETURN.

Form 1120b-Me - Maine Franchise Tax Return For Financial Institutions - 2012 Page 3

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