Taxation committee tables the bill to increase the research and expense tax credit until OPEGA report is released
On Thursday, February 24, the Joint Standing Committee on Taxation voted to table LD 308, An Act to Promote Research and Development in the State by Increasing and Marketing the Research Expense Tax Credit, sponsored by Sen. Trey Stewart (R-Aroostook). The committee tabled the bill until the Office of Program Evaluation and Government Accountability (OPEGA) releases the tax expenditure report on the Research and Development Tax Credit and presents it to the Government Oversight Committee meeting on Friday, March 11.
As drafted, the bill would increase the research and expense tax credit by doubling the amount of expenditures eligible for the credit from 5% to 10% for expenditures over the base amount, increases from 7.5% to 15% the basic research payments, the base amount meaning the average amount per year spent on qualified research expenses over the previous three taxable years by the taxpayer. In addition, the bill doubles the amount of total credit that could be claimed from $25,000 to $50,000. The bill would also provide $100,000 to the Maine Department of Economic and Community Development (DECD) to market the credit. The current credit is based on the federal research credit and is limited to research expenses incurred in Maine.
Maine State Chamber staff will continue to monitor this issue. If you have any questions, please contact Linda Caprara by calling (207) 623-4568, ext. 106, or by emailing firstname.lastname@example.org.