An Act To Create the Savings Account Program for Small Businesses
Sec. 1. 10 MRSA c. 110, sub-c. 13 is enacted to read:
SAVINGS ACCOUNT PROGRAM FOR SMALL BUSINESSES
§ 1100-AA. Savings Account Program for Small Businesses
The Savings Account Program for Small Businesses is established within and administered by the authority to certify corporations that are eligible for tax credits under Title 36, section 5219-VV for contributions made to savings accounts. To be eligible for certification, corporations must be incorporated in Maine, have no more than 99 employees, make contributions in accordance with Title 26, section 1221 and provide coverage under the Maine Workers' Compensation Act of 1992. To be certified, a corporation must demonstrate to the authority that the corporation holds a savings account at a financial institution, that the total contributions to the account did not exceed $250,000 in the tax year, that any withdrawals from the account were used for business purposes and, if applicable, that the corporation has withdrawn all funds from the account within one year of dissolution of the business.
The authority shall adopt routine technical rules, as defined in Title 5, chapter 375, subchapter 2-A, to implement this section.
Sec. 2. 36 MRSA §5200-A, sub-§1, ¶GG is enacted to read:
Sec. 3. 36 MRSA §5219-VV is enacted to read:
§ 5219-VV. Savings Account Program for Small Businesses credit
This bill establishes the Savings Account Program for Small Businesses in the Finance Authority of Maine to certify corporations eligible to claim a tax credit for contributions made to qualifying savings accounts. The bill creates the tax credit and establishes that withdrawals from the savings accounts are taxable income.