Seed Capital Investment Tax Credit: Seed Capital Investment Tax Credit (2025)
Maine · Maine Revenue Services · Used for tax years 2025
The Maine Seed Capital Investment Tax Credit worksheet calculates the credit available for tax year 2025 for eligible investments in Maine businesses. It reports current-year credit, unused credit carryovers, amounts available for future years, and any recapture resulting from a
Who files this form
Use this worksheet to claim the Maine Seed Capital Investment Tax Credit for tax year 2025. Enclose it with Form 1040ME, Form 1041ME, or Form 1120ME.
The credit is for qualifying investments in Maine businesses, with credit certificates issued by the Finance Authority of Maine (FAME).
- Owners of pass-through entities, such as partnerships, LLCs, S corporations, and trusts, may claim the credit in proportion to their interests in the entity.
- Private venture capital funds claiming the credit must email corporate.tax@maine.gov for special instructions.
What you'll need
- Credit certificates: Attach copies of the FAME credit certificates supporting your claim. The 2025 worksheet has separate lines for investments made in 2022, 2023, 2024, and 2025.
- Prior-year worksheet: If carrying unused credit into 2025, use line 10 of your 2024 Seed Capital Investment Tax Credit worksheet.
- Maine return and schedules: You will need the tax-before-credits amounts from Form 1040ME, Form 1041ME and Schedule A, or Form 1120ME.
- Identifying information: Provide your name, EIN or SSN, and the name of the business invested in.
- Pass-through claims: Provide the entity's name, EIN or SSN, and your ownership percentage for the tax year. Attach the federal Schedule K-1 issued to you by the entity.
How to file
Enclose the completed worksheet with your Maine income tax return and attach copies of the credit certificates.
For the worksheet calculation:
- On lines 1 through 4, multiply the applicable credit certificate amounts by 25%. Add those amounts on line 5.
- Enter eligible unused credit carried into 2025 on line 6, then add lines 5 and 6 on line 7.
- On line 8, calculate 50% of tax before credits using the return lines listed on the worksheet.
- On line 9, enter the smaller of line 7 or line 8. Report that credit on the applicable return schedule:
- Form 1040ME, Schedule A, line 15.
- Form 1041ME, Schedule A, line 9.
- Form 1120ME, Schedule C, line 1a.
The supplied text does not give a mailing address or electronic filing instructions.
Common mistakes
- Leaving out credit certificates: A copy of the credit certificate must be attached to your tax return.
- Leaving out pass-through details: Include the entity's name and ID number, your ownership percentage, and a copy of your federal Schedule K-1.
- Overlooking special fund instructions: Private venture capital funds claiming the credit must contact Maine Revenue Services at corporate.tax@maine.gov for special instructions.
Maine Revenue Services may request additional information supporting the credit before processing the return.
Questions people ask
How much of the credit can I use each year?
Generally, 25% of the authorized credit may be used in each of four tax years, beginning with the year the investment was made. The credit is limited to 50% of your tax liability before credits in any one year. Private venture capital funds have special instructions and may claim the credit in the calendar year following the investment year.
Can I carry forward unused credit?
Yes. Unused credit may be carried forward for up to 15 years. Line 10 records the unused amount, and only the portion still within the 15-year carryover period may be claimed next year.
What happens if FAME revokes a credit certificate?
Some of the credit may have to be repaid as additional Maine tax. Subtract the credit not yet claimed from the amount revoked. A positive result is the recapture amount. A negative result represents credit still available.
Who can answer questions about qualifying investments?
Call FAME at 1-800-228-3734. The worksheet also directs readers to famemaine.com for more information.