New Markets Capital Investment Credit: New Markets Capital Investment Credit (2024)
Maine · Maine Revenue Services · Used for tax years 2024
This worksheet calculates Maine’s New Markets Capital Investment Credit for tax year 2024. It reports qualified equity investments, credit carried forward from 2023, the refundable credit claimed for 2024, and any unused credit carried forward to 2025.
Who files this form
Use this worksheet to claim the Maine New Markets Capital Investment Credit for tax year 2024. You must hold a Maine New Markets Capital Investment Program Tax Credit Certificate issued by the Finance Authority of Maine (FAME).
Except for credits carried forward from prior tax years, the certificate must cover qualified equity investments made during tax years beginning in 2018 through 2022. The third, fourth, fifth, sixth, or seventh credit allowance date must fall within your tax year beginning in 2024.
Owners of pass-through entities, such as partnerships, LLCs, S corporations, and trusts, may claim a share of the credit based on their ownership interest or an executed written agreement among the owners.
What you'll need
- A copy of each applicable FAME tax credit certificate. Enclose these with your return and completed worksheet.
- Your 2023 credit worksheet, if carrying forward a credit. Use the amount from line 8 of that worksheet.
- Your taxpayer name and EIN or SSN.
- If claiming through a pass-through entity, its name, EIN or SSN, your ownership percentage, and your credit percentage. If a different credit share is based on an executed written agreement among the owners, have that agreement available.
- If the certificate was transferred to you and you are not the original investor, the prior certificate holder's name and EIN.
How to file
Enclose the completed worksheet and copies of the applicable FAME certificates with Form 1040ME, Form 1041ME, Form 1120ME, or Form INS-4, whichever applies.
Complete the credit calculation:
- Enter qualified investment purchase prices for tax years beginning in 2018 through 2021 on line 1. Multiply by 8% for line 2.
- Enter qualified investment purchase prices for your tax year beginning in 2022 on line 3. Multiply by 7% for line 4.
- Enter any credit carried forward from 2023 on line 5. Add lines 2, 4, and 5 on line 6.
- Enter the credit you are claiming for 2024 on line 7. Subtract line 7 from line 6 to calculate the credit carried forward to tax year 2025 on line 8.
Also report the line 7 amount on the applicable return:
- Form 1040ME, Schedule A, Lines 7 and 19 Other Tax Credits Worksheet, line 2.
- Form 1041ME, Schedule A, line 3.
- Form 1120ME, Schedule C, line 2b.
- Form INS-4, line 19.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Including investments from the wrong years. Do not enter investments made during tax years beginning in 2023 or 2024 on lines 1 or 3. Those investments first qualify for credit amounts during tax years beginning in 2025 and 2026, respectively.
- Leaving out certificates. Enclose a copy of every applicable FAME certificate with your return and completed worksheet.
- Claiming more than your pass-through share. Limit amounts on lines 1 and 3 to your ownership percentage or your credit percentage under an executed agreement among the owners.
- Omitting transfer details. If you are not the original investor, enter the prior certificate holder's name and EIN.
Maine Revenue Services may request additional information supporting the credit before processing the return.
Questions people ask
Is this credit refundable?
Yes. Any amount claimed on line 7 that exceeds your Maine tax liability will be refunded.
Can I carry unused credit forward instead?
Yes. You may elect to carry forward any unused portion for up to 20 years. Line 8 shows the amount carried forward to tax year 2025.
How is the credit spread over time?
The total credit is 39% of the qualified equity investment purchase price, allocated over seven tax years: 0% for the first two years, 7% for year three, and 8% each year for years four through seven. Credit allowance dates depend on when the investment was made.
Can a subsequent certificate holder claim the credit?
Yes. The credit is available to the holder or subsequent holder of the FAME certificate. If you are not the original investor, enter the prior holder's name and EIN on the worksheet.