130th MAINE LEGISLATURE
		LD 229		LR 435(02)
	An Act To Increase Investment Caps in the Maine Seed Capital Tax Credit Program
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
Potential reduction in number of businesses that receive tax credit - Maine Seed Capital Tax Credit Program
			FY 2021-22	FY 2022-23	Projections  FY 2023-24	Projections  FY 2024-25
Net Cost (Savings)
	General Fund		$360,937	$721,875	$712,500	$712,500
Revenue
	General Fund		($360,937)	($721,875)	($712,500)	($712,500)
	Other Special Revenue Funds		($14,063)	($28,125)	($37,500)	($37,500)
Fiscal Detail and Notes
	Providing that the annual $2.0 million limitation on the amount of investments eligible for tax credits for any one business in any calendar year under the Maine Seed Capital Tax Credit Program, administered by the Finance Authority of Maine (FAME) does not apply to investments approved prior to April 1, 2020 may result in fewer eligible businesses receiving tax credits than would have received them absent this legislation.  Under current law the total tax credits for the Maine Seed Capital Tax Credit Program that FAME may issue is $15.0 million for calendar year 2020 through calendar year 2026 and is reduced to $5.0 million annually beginning in calendar year 2027.
	The bill makes changes to the seed capital tax credit program and will result in a reduction in General Fund revenue of $360,937 in fiscal year 2021-22 and $721,875 in fiscal year 2022.23.  It will also reduce Local Government Fund revenue by $14,063 in fiscal year 2021-22 and $28,125 in fiscal year 2022-23.