Maine New Markets Capital Investment Program

About Maine New Markets Capital Investment Program

The State of Maine has replenished funding in its New Market Tax Credit Program. Maine NMTC stimulates economic growth and community development in low-income areas by attracting private investment through tax incentives.

Up to $250,000,000 of qualified equity investments is available for allocation to eligible Community Development Entities (CDEs) through this program. This program is funded in cooperation with Maine Revenue Services. Administered by FAME.

Program Guidelines

See the Program Guidelines

Rules

See the Rules

Public Notice

See the Public Notice

Eligibility

In order to be eligible to participate in the program, a CDE must be certified as a qualified Community Development Entity by the secretary of the United States Treasury.   In addition, the CDE must either: (a) be a “Maine Fund” (defined below),  or (b) meet the following requirements: (i) be a party to an existing allocation agreement with the Department of the Treasury’s Community Development Financial Institution (CDFI) Fund that is in effect and not subject to revocation or cancellation; (ii) the allocation agreement must have Maine in its service area, and (iii) must be able to answer four of the following five questions affirmatively:

• 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?
• 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?
• 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 nonmetropolitan census tract?
• 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?
• 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?

A Maine Fund is a CDE that has had a principal place of business operations in Maine for at least sixty (60) months prior to the application date.

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.
• An approved allocation of tax credit authority shall be valid for up to one year (for credit authority originally awarded after January 1, 2026) or two years (for credit authority originally issued prior to January 1, 2026).
• 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, provide 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 for manufacturing or value-added production enterprises with 200 or more employees, or $10,000,000 for other enterprises.
• 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 rules 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.

Application Download

Maine New Markets Capital Investment Program Application

Contact

For additional information, please contact FAME at support@FAMEmaine.com.

Allocatee Contact List (Reallocation)

Coming soon.