Maine New Markets Capital Investment Program

The Maine New Markets Capital Investment Program provides refundable state tax credits of up to 39% to investors in qualified community development entities (CDEs) that reinvest in certain businesses in eligible low-income communities in Maine. The program is modeled after the federal New Markets Tax Credit Program, and is administered by the Finance Authority of Maine, in cooperation with Maine Revenue Services and the Maine Department of Economic and Community Development. 

 

Eligibility 

In order to be eligible to participate in the program, a CDE must be certified as a qualified community development by the Secretary of the United States Treasury, and be a party to an existing allocation agreement with the Department of Treasury’s CDFI Fund that is in effect and not subject to revocation or cancellation. The allocation agreement must have Maine in its service area. In addition, the CDE must be able to answer four of the following five questions affirmatively:

  1. Has the CDFI Fund been awarded multiple rounds of federal New Markets Tax Credit allocation to the CDE, its controlling entity or other entity controlled by the same controlling entity?
  2. Has the CDE, its controlling entity or other entity controlled by the same controlling entity, participated as a qualified community development entity in a state New Markets Tax Credit program or made an investment in this State that qualifies for federal New Markets Tax Credits?
  3. Has the CDE, its controlling entity or other entity controlled by the same controlling entity, made an investment qualified for tax credits in a business located in a non-metropolitan census tract?
  4. Has the CDE, its controlling entity or other entity controlled by the same controlling entity, made an investment qualified for tax credits in a state where it did not previously have substantial operations?
  5. Has the CDE, its controlling entity or other entity controlled by the same controlling entity, explored potential investment opportunities in Maine that would qualify for credits under the Program?

Basic Terms

  • A CDE may seek an allocation of tax credit authority, reserving tax credit eligibility for later qualified equity investments, by filing an allocation application with FAME.
  • Maximum allocation per CDE is $62,500,000. An approved allocation of tax credit authority shall be valid for up to two years.
  • Upon receipt of qualified equity investments under the approved allocation, and reinvestment in a qualified active low-income community business for use in a low-income community in the state, the CDE must file a certification application with FAME providing the details of the transaction.
  • FAME will review the certification application to determine if the qualified equity investment is eligible for program tax credits, and if approved provides notice to the CDE and to Maine Revenue Services of the persons eligible for credits and the amount thereof. Maximum eligible investment per qualified active low-income community business is $40,000,000.
  • Eligible tax credit recipients may receive refundable state income tax credits of up to 39% of their eligible investment, which may be taken in increments over seven years (0%, 0%, 7%, 8%, 8%, 8%, 8%).

 

Reporting Requirements 

A CDE that has been awarded tax credit allocation authority must file an annual report with FAME. See program Rule for reporting requirements.

 

Recapture 

If a CDE violates the Rule or provisions of relevant statutes, the tax credits may be subject to recapture pursuant to 36 MRSA Section 5219-HH.

 

Fees  

  • $1,000 Allocation Application fee
  • $2,500 Certification Application fee
  • $250 Annual Report Fees

 

Allocation Application

All funds have been allocated at this time. The list of entities whose allocation applications were approved is as follows:
 

Advantage Capital Partners

Michael Johnson, Managing Director

909 Poydras Street, Suite 2230

New Orleans, LA 70112

(504) 522-4850

(total tax credit allocation of $41,666,666.64 split among 5 different related entities)

 

CCG Community Partners, LLC

Paul Hoffman, Managing Director

116 Village Boulevard, Suite 200

Princeton, NJ 08540-5700

(310) 335-2040

(tax credit allocation of $41,666,666.66)

 

CEI Capital Management, LLC

Charles Spies, III, CEO

2 Portland Fish Pier, Suite 206

Portland, ME  04101

(207) 772-5356

(tax credit allocation of $41,666,666.66)

 

Enhanced Community Development, LLC

Richard Montgomery, Managing Director

201 St. Charles Avenue, Suite 3700

New Orleans, LA  70170 

(504) 569-7900

(tax credit allocation of $41,666,666.66)

 

Stonehenge Community Development, LLC

Thomas Adamek, President

236 3rd Street

Baton Rouge, LA 70801

(225) 408-3250

(tax credit allocation of $41,666,666.66)

 

USBCDE, LLC

Matthew Badler, Vice President

1307 Washington Avenue, Suite 300

St. Louis, MO 63103

(314) 335-2612

(tax credit allocation of $41,666,666.66)

 

Certification Application

Click here to view Certification Application.

 

Other 

Click here to view the program rule.


For additional information, please contact FAME General Counsel Christopher Roney at 620-3520 or croney@famemaine.com

 

Connect with us: See FAME on Facebook See our YouTube channel


News of Interest

Subscribe to the FAME Blog