Sec. X-1. 10 MRSA §1100-T, sub-§2, ¶A, as amended by PL 2001, c. 642, §4 and affected by §12, is further amended to read:
A. A tax credit certificate may be issued in an amount not more than 40% of the amount of cash actually invested in an eligible Maine business in any calendar year or, for certificates issued and investments made after June 30, 2002 but before July 1, 2003 and after June 30, 2005, in an amount not more than 60% of the amount of cash actually invested in any one calendar year in an eligible Maine business located in a high-unemployment area, as determined by rule by the authority. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A 2-A.
Sec. X-2. 10 MRSA §1100-T, sub-§2, ¶C, as amended by PL 2001, c. 642, §5 and affected by §12, is further amended to read:
C. Aggregate investment eligible for tax credits may not be more than $5,000,000 for any one business as of the date of issuance of a tax credit certificate, except that the aggregate investment eligible for tax credits may not be more than $1,000,000 for certificates issued and investments made after June 30, 2003 and before July 1, 2005.
Sec. X-3. 10 MRSA §1100-T, sub-§2, ¶D, as amended by PL 2001, c. 642, §6 and affected by §12, is further amended to read:
D. The investment with respect to which any individual is applying for a tax credit certificate may not be more than an aggregate of $500,000 in any one business in any 3 consecutive calendar years, except that this the investment with respect to which any individual is applying for a tax credit certificate may not be more than an aggregate of $200,000 in any one business in any 3 consecutive calendar years for certificates issued and investments made after June 30, 2003 and before July 1, 2005. This paragraph does not limit other investment by any applicant for which that applicant is not applying for a tax credit certificate.
Sec. X-4. 10 MRSA §1100-T, sub-§2-A, ¶¶A, C and D, as amended by PL 2001, c. 642, §8 and affected by §12, are further amended to read:
A. A tax credit certificate may be issued to an individual who invests in a private venture capital fund in an amount that:
(1) Is not more than 40% of the amount of cash actually invested in or unconditionally committed to a private venture capital fund in any calendar year by the individual or entity, except that, for certificates issued and investments made after June 30, 2002 but before July 1, 2003 and after June 30, 2005, with respect to fund investments that are made in eligible businesses that are located in a high unemployment area, as determined by rule of the authority under subsection 2, the tax credit certificate may not be more than 60% of the cash actually invested in or unconditionally committed to a private venture capital fund in any calendar year by the individual or entity; and
(2) Does not exceed 40% of the amount of cash invested by the fund in eligible businesses, except that, for certificates issued and investments made after June 30, 2002 but before July 1, 2003 and after June 30, 2005, with respect to fund investments that are made in eligible businesses that are located in a high unemployment area, as determined by rule of the authority under subsection 2, a tax credit certificate may not be more than 60% of the cash invested by the fund in any calendar year in such businesses; provided that the authority may issue tax credit certificates in an amount not to exceed 20% of the amount of cash actually invested in or unconditionally committed to a private venture capital fund in any calendar year if the authority determines that the private venture capital fund is located in this State, is owned and controlled primarily by residents of this State and has designated investing in eligible businesses of this State as a major investment objective. The credit may be revoked to the extent that the private venture capital fund does not make investments eligible for the tax credit in an amount sufficient to qualify for the credits within 3 years after the date of the tax credit certificates. Notwithstanding any revocation pursuant to this subparagraph, each investor remains eligible for tax credit certificates for eligible investments as and when made by the private venture capital fund.
The aggregate amount of credits issued to investors in a fund may not exceed 40% of the amount of cash invested by the fund in eligible businesses, except that, for certificates issued and investments made after June 30, 2002 but before July 1, 2003 and after June 30, 2005, with respect to fund investments in eligible businesses that are located in a high unemployment area, the aggregate amount of tax credits issued to investors in a fund may not exceed 60% of the cash invested by the fund in eligible businesses.
C. Aggregate investment eligible for tax credits may not be more than $5,000,000 for any one business for any one private venture capital fund as of the date of issuance of a tax credit certificate, except that the aggregate investment eligible for tax credits may not be more than $1,000,000 for any one business for any one private venture capital fund as of the date of issu-ance of a tax credit certificate for certificates issued and investments made after June 30, 2003 and before July 1, 2005.
D. The investment with respect to which any individual or entity is applying for a tax credit certificate may not be more than an aggregate of $500,000 in any one eligible business invested in by a private venture capital fund in any 3 consecutive calendar years, except that this paragraph does not limit other investment by any applicant for which that applicant is not applying for a tax credit certificate and except that, if the investment with respect to which any individual or entity is applying for a tax credit certificate may not be more than an aggregate of $200,000 in any one eligible business invested in by a private venture capital fund in any 3 consecutive calendar years relative to certificates issued and investments made after June 30, 2003 and before July 1, 2005. If the entity applying for a tax credit certificate is a partnership, limited liability company, S corporation, nontaxable trust or any other entity that is treated as a flow-through entity for tax purposes under the federal Internal Revenue Code, the aggregate limit of $500,000 or $200,000, as applicable, applies to each individual partner, member, stockholder, beneficiary or equity owner of the entity and not to the entity itself. This paragraph does not limit other investment by any applicant for which that applicant is not applying for a tax credit certificate.
Sec. X-5. 10 MRSA §1100-T, sub-§4, as amended by PL 2001, c. 642, §9 and affected by §12, is further amended to read:
4. Total of credits authorized. The authority may issue tax credit certificates to investors eligible pursuant to subsections 2 and 2-A in an aggregate amount not to exceed $2,000,000 up to and including calendar year 1996, $3,000,000 up to and including calendar year 1997, $5,500,000 up to and including calendar year 1998, $8,000,000 up to and including calendar year 2001, $11,000,000 up to and including calendar year 2002 2004, $14,000,000 up to and including calendar year 2003, $17,000,000 up to and including calendar year 2004, $20,000,000 up to and including calendar year 2005, $23,000,000 up to and including calendar year 2006, $26,000,000 up to and including calendar year 2007 and $30,000,000 thereafter. The authority may provide that investors eligible for a tax credit under this section in a year when there is insufficient credit available are entitled to take the credit when it becomes available.
Sec. X-6. 36 MRSA §5216-B, sub-§2, as amended by PL 2001, c. 642, §11 and affected by §12, is further amended to read:
2. Credit. An investor is entitled to a credit against the tax otherwise due under this Part equal to the amount of the tax credit certificate issued by the Finance Authority of Maine in accordance with Title 10, section 1100-T and as limited by this section. In the case of partnerships, limited liability companies, S corporations, nontaxable trusts and any other entities that are treated as flow-through entities for tax purposes under the Code, the individual partners, members, stockholders, beneficiaries or equity owners of such entities must be treated as the investors under this section and are allowed a credit against the tax otherwise due from them under this Part in proportion to their respective interests in those partnerships, limited liability companies, S corporations, trusts or other flow-through entities. Except as limited or authorized by subsection 3 or 4, for credit certificates issued and investments made after June 30, 2002 but before July 1, 2003 and after June 30, 2005, 25% of the credit must be taken in the taxable year the investment is made and 25% per year must be taken in each of the next 3 taxable years. Except as limited or authorized by subsection 3 or 4, for credit certificates issued after June 30, 2003 but before July 1, 2005, 15% of the credit must be taken in the first 6 years after the investment is made and 10% in the 7th year after the investment is made.
| Revisor of Statutes Homepage | Subject Index | Search | 121st Laws of Maine | Maine Legislature |
