New Markets Capital Investment Credit: New Markets Capital Investment Credit (2025)
Maine · Maine Revenue Services · Used for tax years 2025
This worksheet calculates Maine’s New Markets Capital Investment Credit for tax year 2025. It reports qualified equity investments, credit carried forward from 2024, the refundable credit claimed for 2025, and any credit carried forward to 2026.
Who files this form
Use this worksheet to claim the Maine New Markets Capital Investment Credit for tax year 2025. 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 earlier tax years, the certificate must cover qualified equity investments made during tax years beginning in 2019 through 2023. The third, fourth, fifth, sixth, or seventh credit allowance date must fall within your tax year beginning in 2025.
Owners of pass-through entities, such as partnerships, LLCs, S corporations, and trusts, may claim a credit based on their ownership interests or an executed written agreement among the owners.
What you'll need
Have the following ready:
- A copy of each applicable FAME tax credit certificate. Enclose the copies with your completed worksheet and return.
- Your 2024 credit worksheet, if you are carrying a credit forward. The 2025 worksheet uses the amount from line 8 of the 2024 worksheet.
- Your taxpayer name and EIN or SSN.
- The prior certificate holder’s name and EIN, if you are not the original investor.
- For a pass-through credit, the entity’s name, EIN or SSN, your ownership percentage, and your credit percentage. If your credit share follows an executed written agreement among the owners, have that agreement available.
Maine Revenue Services may request additional information supporting the credit before processing the return.
How to file
Enclose the completed worksheet and copies of all applicable FAME certificates with Form 1040ME, Form 1041ME, Form 1120ME, Form 1120B-ME, or Form INS-4, whichever applies.
Complete the credit calculation:
- Enter qualifying investment purchase prices for tax years beginning in 2019 through 2022 on line 1. Multiply by .08 for line 2.
- Enter qualifying investment purchase prices for the tax year beginning in 2023 on line 3. Multiply by .07 for line 4.
- Enter any credit carried forward from 2024 on line 5. Add lines 2, 4, and 5 for line 6.
- Enter the credit you are claiming for 2025 on line 7.
- Subtract line 7 from line 6 to find the credit carried forward to tax year 2026 on line 8.
Also enter the line 7 amount on the applicable return:
- Form 1040ME: Schedule A, Other Tax Credits Worksheet (for Lines 8 and 20), line 2.
- Form 1041ME: Schedule A, line 3.
- Form 1120ME: Schedule C, line 2b.
- Form 1120B-ME: Line 4d.
- Form INS-4: Line 19.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Including investments from the wrong years: Do not enter investments made during tax years beginning in 2024 or 2025 on lines 1 or 3. Those investments first qualify for credit amounts during tax years beginning in 2026 and 2027, respectively.
- Leaving out certificates: You must enclose a copy of each applicable FAME certificate with the completed worksheet and return.
- Claiming more than your pass-through share: Owners must limit the investment amounts on lines 1 and 3 to their ownership percentage or their credit percentage under an executed agreement among the owners.
Questions people ask
Is this credit refundable?
Yes. The credit is fully refundable. Any amount claimed on line 7 that exceeds your Maine tax liability will be refunded.
Can I carry unused credit forward?
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 2026.
How is the credit spread over time?
The total credit is 39% of the qualified equity investment’s purchase price, allocated over seven tax years based on the credit allowance dates: 0% for the first two years, 7% for year three, and 8% each year for years four through seven.
Can a subsequent certificate holder claim the credit?
Yes. The text allows the holder or subsequent holder to claim the credit. If you are not the original investor, enter the prior certificate holder’s name and EIN.