Research Expense Tax Credit: Research Expense Tax Credit (2025)
Maine · Maine Revenue Services · Used for tax years 2025
This worksheet calculates Maine’s Research Expense Tax Credit for tax year 2025. It reports qualifying research expenses and basic research payments for research conducted in Maine, prior-year expenses used to calculate the base amount, and unused credits carried forward from ear
Who files this form
This worksheet is for businesses claiming the Maine Research Expense Tax Credit for tax year 2025. The credit applies only to eligible expenses for research conducted in Maine.
Owners of pass-through entities, such as partnerships, LLCs, S corporations, and trusts, may claim a credit in proportion to their interests in the entity. Each amount entered on the worksheet must reflect the owner's ownership percentage.
What you'll need
- The completed 2025 Research Expense Tax Credit worksheet, including your name and EIN or SSN.
- A copy of your individual federal Form 6765 and other documentation supporting the credit claim.
- If you are a member of a pass-through entity, the entity's federal Form 6765, the federal Schedule K-1 issued to you, and the entity's name, identification number, and your ownership percentage.
- Maine qualified research expense amounts for 2025 and the three previous tax years: 2024, 2023, and 2022.
- Any unused credit amounts carried forward from prior years.
Maine Revenue Services may also request supporting documentation and certification statements provided to the IRS to verify the credit.
How to file
Enclose the worksheet and federal Form 6765 with your applicable Maine return: Form 1040ME, Form 1040C-ME, Form 1041ME, or Form 1120ME.
Enter the allowable credit on:
- Form 1040ME: Schedule A, line 16.
- Form 1040C-ME: Schedule A, line 8.
- Form 1041ME: Schedule A, line 10.
- Form 1120ME: Schedule C, line 1f.
Pass-through entity owners must also attach a copy of their federal Schedule K-1.
The worksheet does not provide a mailing address or e-file instructions.
Common mistakes
- Using the entity's full amounts instead of your share. The instructions remind pass-through owners that every line must reflect their ownership percentage.
- Leaving out required attachments. Include federal Form 6765 and supporting documentation. Pass-through owners must also provide the entity's Form 6765 and their federal Schedule K-1.
- 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.
- Ignoring the corporate credit limit. The worksheet directs corporations with a line 8 amount above $25,000 to review the instructions.
Maine Revenue Services may request additional information supporting the credit before processing the return.
Questions people ask
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 in excess of the Maine base amount. Available carryforwards are then added, subject to the credit limits.
What is the base amount for qualified research expenses?
For tax year 2025, add Maine qualified research expenses for 2024, 2023, and 2022, then divide by three. Expenses for a short prior tax year must be prorated according to federal regulations.
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 also limited to 100% of the first $25,000 of income tax before other credits, plus 75% of the tax above $25,000.
Can I use an unused credit in a later year?
Yes. Unused credit may be carried forward for up to 15 years. Enter unused credit from prior years on line 7.