Worksheet for Individuals: Worksheet for Individuals (2025)
Maine · Maine Revenue Services · Used for tax years 2025
The 2025 Maine Dirigo Business Incentives Tax Credit Worksheet for Individuals calculates the refundable and nonrefundable portions of an individual's credit, including a share of credit from a pass-through entity. It is enclosed with Form 1040ME, and the credit amounts are repor
Who files this form
Individuals claiming the 2025 Dirigo Business Incentives Tax Credit must complete this worksheet. This includes owners of a pass-through entity that is a qualified business.
The qualified business must be certified by the Maine Department of Economic and Community Development (DECD) and invest in eligible business property or qualified employee training programs.
If you own interests in more than one qualified business, complete a separate worksheet for each business.
What you'll need
Have the following information ready:
- Your name and Social Security number.
- The qualified business’s name, federal EIN or SSN, and DECD certification number.
- The business’s total qualified business credit for 2025.
- The first tax year you claimed, or could have claimed, the credit under that certification number.
- Your pro rata share of the business and its affiliated business ratio, if applicable.
If you are claiming through a pass-through entity, enter its name and federal EIN or SSN and enclose a copy of the federal Schedule K-1 it issued to you.
Before you complete this worksheet, the qualified business must complete and file Schedules QB and QB-1. Contact the business for the information needed to calculate your credit. It must also provide applicable notices about layoffs or property removed from service that could affect the credit.
How to file
Enclose the completed worksheet with Form 1040ME.
- Enter your identifying information and the qualified business’s information.
- Enter your pro rata share on line A. If the listed ownership or beneficiary rules do not apply, enter 1.0000.
- Complete the credit calculations, leaving reserved lines 5 and 6 blank.
- Report the refundable credit from line 12 on Form 1040ME, Schedule A, line 7.
- Report the nonrefundable credit from line 13 on Form 1040ME, Schedule A, line 19.
If you complete multiple worksheets, add their line 12 amounts and report no more than $500,000 on Schedule A, line 7. Add their line 13 amounts and report no more than $1,500,000 on Schedule A, line 19.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Entering amounts on reserved lines. Lines 5 and 6 are reserved for future use. Do not enter amounts there.
- Leaving out required attachments. Enclose the worksheet with Form 1040ME and, for a pass-through entity claim, include a copy of your federal Schedule K-1.
- Combining businesses on one worksheet. Complete a separate worksheet for each qualified business.
- Overlooking the credit limits. The total credit allowed may not exceed $2,000,000 per tax year. When combining worksheets, the Schedule A limits are $500,000 for the refundable credit and $1,500,000 for the nonrefundable credit.
Maine Revenue Services may request additional information supporting the credit before processing the return.
Questions people ask
How is the business’s credit calculated?
The credit equals 5% or 10% of eligible capital investment placed in service in Maine, depending on the property’s location, plus $2,000 for each qualified employee who completes a qualified employee training program during the tax year. Other limitations apply.
How do I determine my pro rata share?
For a partnership, use your percentage interest in its taxable income or loss for federal income tax purposes for the tax year. For an S corporation, use your percentage share of stock at the end of the taxable year. For an estate or trust, use your share of federal distributable net income. If there is no distributable net income, use your share of income required to be distributed and any income actually distributed that year.
What if my tax year differs from the partnership’s tax year?
Claim the credit in your tax year during which the partnership’s tax year generating the credit ends.
Can a layoff or removal of property from service affect my credit?
Yes. A layoff within the five-year period after property was placed in service may lead to credit carryover disallowance. Removing eligible property from service before the end of its required five-year use period may lead to credit recapture. The pass-through entity must provide affected members with notices and information needed to determine these amounts.