Maine Capital Investment Credit: Maine Capital Investment Credit (2025)
Maine · Maine Revenue Services · Used for tax years 2025
The 2025 Maine Capital Investment Credit worksheet reports unused credit carried forward from the previous tax year. Enclose it with Form 1040ME, Form 1041ME, or Form 1120ME. The credit is repealed for tax years beginning on or after January 1, 2025, but unused amounts may be car
Who files this form
Use this tax year 2025 worksheet if you are claiming unused Maine Capital Investment Credit carried forward from the previous tax year. Enclose it with Form 1040ME, Form 1041ME, or Form 1120ME.
The credit is repealed for tax years beginning on or after January 1, 2025, but qualifying unused credit may be carried forward for up to 20 taxable years. To qualify for that carryforward period, the unused amount must be reflected on the 2024 credit worksheet and must have been generated in a tax year beginning after December 31, 2010.
What you'll need
- Your 2024 credit worksheet showing the unused credit amount.
- The completed 2025 carryforward worksheet, including your taxpayer name and EIN or SSN.
- The applicable Maine income tax return: Form 1040ME, Form 1041ME, or Form 1120ME.
Maine Revenue Services (MRS) may request additional information supporting the credit before processing your return.
How to file
- Enter your taxpayer name and EIN or SSN on the worksheet.
- On line 1, enter the unused credit carried forward from the previous tax year.
- Enter that amount on the applicable 2025 return schedule:
- Form 1040ME, Schedule A, line 17.
- Form 1041ME, Schedule A, line 12.
- Form 1120ME, Schedule C, line 1e.
- Enclose the worksheet with your return.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Claiming a new credit for 2025. The credit is repealed for tax years beginning on or after January 1, 2025. This worksheet is for unused credit carried forward.
- Overlooking recapture. Credit claimed is subject to recapture if the related property was transferred out of state or otherwise removed from service in a subsequent tax year, but within 12 months of being placed in service in Maine. You must amend the return for the year the credit was claimed and, if necessary, later returns.
- Using recapture line references without checking the year. Unless otherwise stated, the recapture instructions refer to 2024 forms. Prior-year line numbers may differ.
- Applying one corporation's credit to another group member. A credit generated by a taxable corporation in an affiliated group engaged in a unitary business may offset only that member's Maine income tax liability, unless specifically permitted otherwise by law.
Questions people ask
Can I still use unused credit after the repeal?
Yes. Qualifying unused credit may be carried forward for up to 20 taxable years. It must be reflected on the 2024 credit worksheet and generated in a tax year beginning after December 31, 2010.
What amount goes on line 1?
Enter the unused credit carried forward from the previous tax year. Transfer the same amount to the applicable credit line on your Maine return.
What happens if property related to the credit is moved out of Maine?
The credit is subject to recapture if the property is transferred out of state or otherwise removed from service in a subsequent tax year, but within 12 months of being placed in service in Maine. File an amended return for the year you claimed the credit. Later returns may also need amendments to remove recaptured carryforward amounts and adjust bonus depreciation.
Can MRS ask for more information?
Yes. MRS may request additional information supporting the credit claimed before your return can be processed.