Employer Credit for Family and Medical Leave: Employer Credit for Family and Medical Leave (2025)

Who files this form

This worksheet is for claiming the Maine employer credit for family and medical leave for tax year 2025. The credit is available to employers eligible for the federal paid family and medical leave credit under Internal Revenue Code Section 45S.

The Maine credit covers the portion of the federal credit related to qualifying leave wages paid to employees based in Maine. An employee is based in Maine if they perform more than 50% of their employee-related activities for the employer at a location in Maine.

Owners of eligible pass-through entities may claim a credit in proportion to their respective interests in the entity.

What you'll need

Have these forms and details ready:

• Federal Form 8994, line 3, showing your federal employer credit for paid family and medical leave.
• The federal Paid Family and Medical Leave Credit Worksheet, column (b), showing qualifying wages used to calculate the federal credit.
• The amount of those wages paid to employees based in Maine.
• Your taxpayer name and EIN or SSN.

If you claim the credit through a pass-through entity, provide the entity's name, EIN or SSN, and your ownership percentage for the tax year. Attach a copy of the federal Schedule K-1 issued to you by that entity.

Maine Revenue Services may request additional information supporting the credit before processing the return.

How to file

Complete the worksheet for tax year 2025:

1. On line 1, enter the federal credit from federal Form 8994, line 3.
2. On line 2, enter qualifying leave wages from the federal Paid Family and Medical Leave Credit Worksheet, column (b).
3. On line 3, enter the portion of line 2 paid to employees based in Maine.
4. Divide line 3 by line 2 and enter the result on line 4.
5. Multiply line 1 by line 4 and enter the Maine credit on line 5.

Report line 5 on the applicable return:

• Form 1040ME, Schedule A, Other Tax Credits Worksheet (for Lines 8 and 20), line 16.
• Form 1040C-ME, Schedule A, line 11.
• Form 1041ME, Schedule A, line 15.
• Form 1120ME, Schedule C, line 1h.
• Form INS-4, line 17.

Enclose this worksheet with the applicable return. The worksheet does not specify a mailing address or an e-file method.

Common mistakes

• Do not treat this credit as refundable. The worksheet states that it is not refundable.
• Do not carry unused credit back or forward to another tax year.
• If claiming through a pass-through entity, do not omit the entity's name, ID number, ownership percentage, or required copy of your federal Schedule K-1.
• Do not leave the worksheet out of your return. It must be enclosed with the applicable tax form.

Questions people ask

Who counts as an employee based in Maine?

An employee who performs more than 50% of their employee-related activities for the employer at a location in Maine.

How is the Maine credit calculated?

Multiply your federal employer credit for paid family and medical leave by the share of qualifying leave wages paid to employees based in Maine. The worksheet calculates that share by dividing line 3 by line 2.

Can I get a refund or use unused credit in another year?

No. The credit is not refundable, and unused credit cannot be carried back or forward to other tax years.

Can owners of pass-through entities claim the credit?

Yes. Partners, members, shareholders, beneficiaries, and other owners of eligible entities are allowed a credit in proportion to their respective interests. Provide the entity details and ownership percentage, and attach a copy of your federal Schedule K-1.

Can Maine Revenue Services ask for more information?

Yes. Maine Revenue Services may request additional information supporting the credit before the return can be processed.

Official sources

• https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/25_family_medical_leave_cr_fillable.pdf