Any business that engages in research and development activities in Maine that meet the definitions in Section 41 of the Internal Revenue Code. Such expenses include certain in-house and contract research expenses if they relate to discovering information that is technological in nature and intended for use in developing a new or improved business component.  

Income tax credit for companies that incur qualifying research expenses in Maine in excess of the base period amount; the base amount is the average research expenses incurred over the prior three years. The credit equals 5% of the qualified research expenses that exceed the average research expenses, plus 7.5% of basic research payments to educational institutions and certain qualified research organizations. The credit is limited to the first $25,000 of tax plus 75% of the tax over $25,000 per year; the credit can be carried forward 15 years.