SENATE UNANIMOUSLY SUPPORTS IMPROVED ACCESS TO CAPITAL FOR MAINE BUSINESSES

Votes to strengthen the Maine Seed Capital Tax Credit Program

AUGUSTA—Today, the Senate voted unanimously to help Maine businesses secure financing by extending and improving the successful Maine Seed Capital Tax Credit Program.

“We know this program helps Maine businesses,” said Senator Linda Valentino (D-Saco), the sponsor of the bill. “Expanding the program will help small businesses grow, and hire more Maine workers.”

The Maine Seed Capital Tax Credit Program provides tax credits to private equity investors who invest in eligible Maine businesses. In the past year, $4.67 million was invested in a dozen Maine companies. Since the creation of the program, 128 Maine companies have received capital.

Senator Valentino’s measure would extend the program by instituting an annual, rather than lifetime, cap on credits, and by increasing the annual sales limit from $3 million to $5 million. It would also require eligible businesses to certify that investment is necessary to create and/or retain Maine jobs.

“This is a proven, highly effective program that continues to generate new revenue and sustain job growth in Maine,” said Senator Anne Haskell (D-Portland), the chair of the Taxation Committee. “We need to keep these investment dollars in Maine.”

Access to venture capital has historically been difficult for Maine entrepreneurs. Maine lags far behind other New England states and the nation in average annual venture capital investment per capita, with only one-third the average annual investment per capita of Vermont and about one-ninth the annual investment in neighboring New Hampshire.

The bill, LD 743, An Act To Extend and Improve the Maine Seed Capital Tax Credit Program, faces further votes in the Senate and the House.

###