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HIGH TECHNOLOGY INVESTMENT TAX CREDIT

Eligible Businesses:
Business primarily engaged in high-tech activities that purchase and use eligible equipment. High-tech activities include the design, creation, and production of computer software, computer equipment, supporting communications components and other accessories that are directly associated with computer software equipment; it also includes the provision of internet or advanced telecommunications services.
 
 
Program Summary:
The credit amount is equal to the adjusted basis of eligible equipment placed in service in Maine less any lease payments received during the taxable year; the credit cannot reduce the tax liability to less than the preceding tax year's liability after the allowance of any credits, and it cannot reduce the tax liability in the current year below zero; unused portions of the credit may be carried forward five years; the credit cannot exceed $100,000 in any one year; income must be increased by any credit base amount claimed as a business expense. (Please note that this credit cannot be used in tandem with the Business Equipment Tax Reimbursement.)
   
Program Valuation Example:
 
 
Investment Assumptions
Eligible Equipment Purchases
$35,000
Maine Net Tax Due (Prior Year)
$200,000
Maine Tax Due (Program Year)
$225,000
ROI & Program Valuation
Adjusted Tax ($225,000 - $35,000)
*Cannot Reduce Taxes Below Prior Year*
$200,000
Credit Amount Eligible for Program Year
$25,000
Amount of Credit Eligible for Carry-Forward
$10,000
Total Value of High Technology Investment Tax Credit
(Including Carry-Forward):
$35,000
 


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