Maine offers a range of business incentives designed to promote economic growth, job creation, and capital investment.  From tax credits and rebates to grant programs, the state seeks to support businesses across various industries, including manufacturing, clean energy, and technology.  Below are some of the key business incentives available in Maine.

Maine Dirigo Program

Overview

The Dirigo Program is designed to encourage economic development and job creation in Maine.  The program offers a series of tax incentives for businesses that make significant investments in new projects, equipment, and workforce expansion.  This program helps businesses by providing tax relief and financial incentives to spur growth in targeted sectors.

Eligibility

• Businesses must locate or expand in Maine and create jobs.

• Eligible businesses must meet investment and job creation criteria and be located in designated areas of economic need, as defined by the Maine Department of Economic and Community Development (DECD).

• The program targets industries such as manufacturing, clean technology, and scientific research.

Incentive Value

• Businesses can receive state income tax exemptions, property tax exemptions, and sales tax exemptions on qualified investments.

• The program may provide up to 100% income tax relief for up to 10 years, as well as other state and local tax benefits.

Application Process

Businesses must apply to DECD, providing detailed information about the business, location, investment plans, and expected job creation.

Maine New Markets Capital Investment Program

Overview

The Maine New Markets Capital Investment Program provides tax incentives for businesses that invest in low-income areas of the state.  The program aims to stimulate economic development by encouraging investments in underserved communities.

Eligibility

• Businesses must be located in low-income or economically distressed areas.

• Eligible investments must involve capital improvements, equipment, or infrastructure.

Incentive Value

• Investors in qualifying businesses can receive up to 39% in tax credits for equity investments.

• The credit can be applied to Maine state income taxes.

Application Process

Investors and businesses must apply through DECD, providing information about the investment and the business’s economic impact.

Maine Business Equipment Tax Reimbursement Program (BETR)

Overview

The BETR reimburses businesses for the state property taxes paid on qualified new equipment purchases.  The program aims to reduce the burden on businesses that invest in machinery and other capital assets.

Eligibility

• Businesses must purchase new equipment that is used for production or manufacturing.

• The equipment must be located in Maine and used in active business operations.

Incentive Value

• Businesses can receive a reimbursement for up to 100% of the state property taxes paid on qualifying equipment.

• The reimbursement applies for up to 12 years, depending on the value and use of the equipment.

Application Process

Businesses must apply to DECD, providing documentation of their equipment purchases and tax payments.

Maine Research and Development (R&D) Tax Credit

Overview

Maine offers a Research and Development (R&D) Tax Credit to encourage businesses to invest in research and innovation. The program provides tax incentives for eligible R&D activities, helping businesses reduce costs related to technological development and product innovation.

Eligibility

• The credit is available to businesses that engage in qualifying research and development activities in Maine.

• Eligible R&D activities include the development or improvement of products, processes, or technologies.

Incentive Value

• Businesses can receive a credit of up to 10% of eligible Maine-based R&D expenditures.

• The credit can be used against Maine state income taxes and can be carried forward for up to 5 years.

Application Process

Businesses must apply to DECD, providing documentation of their R&D activities and expenses.

Maine Opportunity Tax Credit (OTC)

Overview

The Maine Opportunity Tax Credit incentivizes businesses that create high-wage, full-time jobs in targeted industries.  The program aims to boost job creation, especially in sectors that align with Maine’s economic growth priorities.

Eligibility

• Businesses must create at least 5 full-time, permanent jobs with wages above the state’s median wage.

• The business must be located in an economically distressed area of the state or be engaged in a high-growth industry.

Incentive Value

• Businesses can receive a refundable income tax credit of up to 5% of the wages paid to eligible employees.

• The credit is available for up to 5 years, depending on job creation levels and wage thresholds.

Application Process

Businesses must apply to DECD, providing information about job creation and wages.

Maine Clean Energy Development Program

Overview

The Maine Clean Energy Development Program provides grants and loans to businesses that invest in renewable energy or energy efficiency projects.  The program encourages the use of clean energy technologies, such as solar, wind, and biomass, by offering financial assistance.

Eligibility

• Businesses must be engaged in the installation or development of renewable energy systems.

• Eligible projects must demonstrate energy savings or the use of renewable energy sources.

Incentive Value

• The program offers grants or low-interest loans to cover a portion of the project costs.

• The incentives are designed to reduce the upfront costs of clean energy investments and help businesses transition to more sustainable practices.

Application Process

Businesses must apply to the Maine Department of Environmental Protection, providing project details and a financial plan.

Maine Sales Tax Exemption for Manufacturing Equipment

Overview

Maine offers a sales tax exemption on the purchase of manufacturing equipment used in the production process.  The program is designed to help reduce the cost of expanding or upgrading manufacturing operations in the state.

Eligibility

• The exemption is available to businesses that purchase manufacturing machinery, equipment, and tangible personal property used in production.

• The equipment must be used in active business operations within Maine.

Incentive Value

• Businesses can receive a full exemption from state sales taxes on qualifying equipment purchases.

• This exemption can significantly lower the cost of investing in manufacturing machinery.

Application Process

Businesses must apply to the Maine Department of Revenue (MDR), providing documentation of their purchases and business activities.

Maine Workforce Development Grant Program

Overview

The Maine Workforce Development Grant Program helps businesses cover the costs of training their workforce.  The program supports businesses that need to upgrade their employees' skills to meet the demands of new technologies or market changes.

Eligibility

• Businesses must provide training to employees in skills that enhance productivity, safety, or overall workforce competence.

• The program is available to businesses in all industries, including manufacturing, technology, and health care.

Incentive Value

• Businesses can receive grants to cover a portion of the training costs, including tuition, training materials, and employee certifications.

• Grants are awarded on a competitive basis and are designed to encourage companies to invest in their employees' development.

Application Process

Businesses must apply through the Maine Department of Labor, providing details about their training programs and the skills being targeted.

Maine State Property Tax Exemption for Certain Investments

Overview

This program offers property tax exemptions for businesses that make certain qualifying investments in machinery, equipment, and real property used for manufacturing or other eligible business activities.

Eligibility

• Businesses must invest in new or upgraded machinery, equipment, or real property used in manufacturing or other qualifying industries.

• The exemption is available to both new and existing businesses in Maine.

Incentive Value

• Businesses can receive an exemption from state and local property taxes on eligible investments for up to 10 years.

• The exemption applies to machinery, equipment, and certain types of real property.

Application Process

Businesses must apply to MDR and provide details about the investments made and their use in business operations.