Research Expense Tax Credit: Research Expense Tax Credit (2024)
Maine · Maine Revenue Services · Used for tax years 2024
The Maine Research Expense Tax Credit Worksheet for tax year 2024 calculates the credit for qualified research expenses and basic research payments for research conducted in Maine. It also accounts for unused credits carried forward from prior years and must be enclosed with your
Who files this form
Use this worksheet to claim the Maine Research Expense Tax Credit for tax year 2024. The credit is available to businesses that spend money on research conducted in Maine.
Owners of pass-through entities, such as partnerships, LLCs, S corporations, and trusts, may claim a share of the credit in proportion to their interests in the entity.
What you'll need
- The completed 2024 Research Expense Tax Credit Worksheet, including your taxpayer name and EIN or SSN.
- A copy of your federal Form 6765 and other documentation supporting the credit claim.
- Maine qualified research expense amounts for 2024 and the three prior tax years: 2023, 2022, and 2021.
- Unused credit amounts from prior years, if claiming a carryforward.
- If claiming through a pass-through entity: the entity's name, EIN, your ownership percentage, a copy of the federal Schedule K-1 issued to you, and the entity's federal Form 6765.
Maine Revenue Services may also ask for supporting documentation and certification statements provided to the IRS to verify the credit.
How to file
Enclose this worksheet and federal Form 6765 with Form 1040ME, Form 1040C-ME, Form 1041ME, or Form 1120ME.
Enter the allowable credit on the applicable return:
- Form 1040ME, Schedule A, line 16.
- Form 1040C-ME, Schedule A, line 6.
- Form 1041ME, Schedule A, line 10.
- Form 1120ME, Schedule C, line 1f.
The worksheet does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out required attachments. Enclose the worksheet and federal Form 6765 with your return. Pass-through owners must also attach their federal Schedule K-1 and provide the entity's federal Form 6765.
- Using the entity's full amounts instead of your share. For pass-through owners, each worksheet line must reflect the owner's ownership percentage.
- Overlooking a short prior tax year. If any of the three prior tax years was a short year, qualified research expenses must be prorated according to federal regulations.
- Skipping the corporate credit limit. The worksheet directs corporations with a line 8 amount greater than $25,000 to check the instructions.
Maine Revenue Services may request additional information supporting the credit before the return can be processed.
Questions people ask
Does research outside Maine qualify?
No. This credit applies only to amounts spent on research conducted in Maine. The line 1 instructions explain how to calculate the Maine amount when qualifying research takes place both inside and outside Maine.
How is the credit calculated?
The worksheet calculates 7.5% of eligible Maine basic research payments in excess of the federal base, plus 5% of Maine qualified research expenses above the base amount. For 2024, the qualified research expense base is the average of the Maine expenses for 2023, 2022, and 2021. Eligible carryforwards are then added, subject to the credit limits.
Can the credit reduce my tax below zero?
No. The credit and any carryforward cannot reduce tax liability below zero. For corporations, the credit is limited to 100% of the first $25,000 of income tax before other credits, plus 75% of the tax above $25,000. Special rules apply to controlled-group corporations and corporations filing a Maine combined return.
What happens to unused credit?
Unused credit may be carried forward for up to 15 years. Enter unused credit from prior years on line 7.