2017 MAINE TAX CREDITS

ADULT DEPENDENT CARE EXPENSE CREDIT

ADULT DEPENDENT CARE CREDIT WORKSHEET FOR TAX YEAR 2017

 

If you cared for a disabled person over the age of 21 in your home for more than 1/2 of the year, you may be eligible for a credit of up to $3,000. If you are eligible, you may be able to claim a tax credit equal to 25% of the applicable percentage of adult dependent care expenses paid for adult day care, hospice services and respite care during the taxable year to the extent the expenses are not used to calculate the federal child and dependent care credit.  The expenses that may be used to calculate the credit are limited to $3,000 for one qualifying individual or $6,000 for two or more qualifying individuals and the applicable percentage is the percentage used to calculate the federal child and dependent care credit. The credit is refundable up to $500.

A qualifying individual is an individual that meets all of the following:

  • is a qualifying person for purposes of the federal credit for child and dependent care expenses;

  • was at least 21 years of age as of the last day of your tax year;

  • is a disabled spouse or other disabled person you claim as a dependent or could claim as a dependent except that:

    • the disabled person had federal gross income of $4,050 or more;

    • the disabled person filed a joint income tax return; or

    • you or your spouse, if filing jointly, could be claimed as a dependent on another individual taxpayer’s 2017 return;

  • the disabled person was not physically or mentally able to care for himself or herself; and

  • the disabled person lived with you for more than half of your tax year beginning in 2017

Qualified expenses include amounts paid during the tax year for adult day care, hospice services and respite care for a qualifying individual to the extent the expenses were not used to calculate the federal child and dependent care expense credit.

 

For purposes of the credit:

  • Adult day care means an ongoing program of health, social, maintenance and rehabilitative services available to a qualifying individual needing this level of service, as determined by an assessment of their functional abilities and need for health and social services (22 M.R.S. § 6202(1)).

  • Hospice services means a range of interdisciplinary services provided on a 24-hours-a-day, 7-days-a-week basis to a qualifying individual who is terminally ill and that individual’s family (22 M.R.S. §8621(11)).

  • Respite care means temporary care-giving to a qualifying individual for the purpose of relieving that individual’s family or another primary care-giver.

Biofuel Commercial Production and Commercial Use Credit
Certified Visual Media Production Credit
Credit for Tax Paid To Other Jurisdictions
 
DISABILITY INCOME PROTECTION PLANS CREDIT

DOWNLOAD DISABILITY INCOME PROTECTION PLANS WORKSHEET FOR TAX YEAR 2017

This credit is available for certain employers that offer a qualified short-term and/or long-disability income protection plan to its employees. The  credit is $30 per employee enrolled in a qualified plan during the taxable year. Employees enrolled in a disability income protection plan during the employer’s tax year beginning in 2016 may not be included in the base on line 1 above for calculating the credit.  An employer must claim the credit for the first taxable year during which the employer becomes eligible for the credit and may claim the credit for no more than 3 consecutive tax years. The credit is limited to the tax liability of the taxpayer and any unused credit amount may not be carried back or forward to other tax years.

Dual Residence Reduction of Tax Credit

Educational Opportunity Tax Credit

Download Educational Opportunity Tax Credit Worksheet for Tax Year 2017 for Individuals

Download Educational Opportunity Tax Credit Worksheet for Tax Year 2017 for Employers

The purpose of the program is to provide an income tax credit for Maine resident taxpayers who are making eligible education loan payments on loans obtained to earn: an undergraduate degree (associate or bachelor’s) from an accredited Maine college or university prior to 2016; or an associate or bachelor’s degree after 2015 from an accredited Maine or non-Maine college or university; or, a graduate  degree after 2015 from an accredited Maine college or university and who, after graduation, live, work and pay taxes in Maine.

Credit for Rehabilitation of Historic Properties

DOWNLOAD THE REHABILITATION OF HISTORIC PROPERTIES WORKSHEET FOR TAX YEAR 2017

This credit is administered by The Maine Historic Preservation Commission e Historic Preservation Office) in consultation with the Maine Revenue Services. The Maine State Historic Rehabilitation Tax Credit Program includes the following features:

  1. The "Substantial Rehabilitation Credit". A 25% state credit for any rehabilitation that also qualifies for the 20% federal credit. The rehabilitation must meet all of the requirements of the Federal tax incentive program.

  2. The "Small Project Rehabilitation Credit." A 25% state credit for the rehabilitation of certified historic structures with certified qualified rehabilitation expenditures of between $50,000 and $250,000. This credit is available to entities that do not claim the federal rehabilitation credit. Applicants must meet all federal tax code qualifications except the substantial investment requirement.

  3. The "Affordable Housing Rehabilitation Credit Increase". The State Substantial Rehabilitation Credit and the Small Project Rehabilitation Credit may be increased to 30% if the rehabilitation project results in the creation of a certain amount of affordable housing. Please contact the Maine State Housing Authority (MSHA) for additional eligibility requirements.

  4. There is a "per project" state credit cap of $5 million. State credits are fully refundable, 25% of the credits must be claimed in taxable year in which the property is placed in service, and 25% must be taken in each of the next three (3) taxable years. Only rehabilitation expenditures incurred between January 1, 2008 and December 31, 2023 are eligible for the credit.

Credit for Wellness Programs

DOWNLOAD THE WELLNESS PROGRAMS WORKSHEET FOR TAX YEAR 2017

An employer with 20 or fewer employees (calculated on an average monthly basis) may qualify for the credit for wellness programs. An employer is a taxpayer that employs one or more individuals performing services for the taxpayer within Maine. The credit is equal to expenditures made during the taxable year to develop, institute and maintain a wellness program. The total credit (including the carryover of unused credit amounts from prior years) is limited to the lesser of $100 per employee or $2,000, and may not reduce tax liability to less than zero. Any unused credit amounts on line 3 may be carried forward for up to 5 years.

A wellness program is a program that improves employee health, morale and productivity. This includes, but is not limited to, health education programs, behavioral change programs and incentive awards to employees who engage in regular physical activity. Behavioral change programs include counseling, seminars or classes on nutrition, stress management, or smoking cessation.

The AccessAble Home Tax Credit

DOWNLOAD THE CERTAIN HOMESTEAD MODIFICATIONS WORKSHEET FOR TAX YEAR 2017

The AccessAble Home Tax Credit is administered by the Maine State Housing Authority.  Eligible taxpayers whose federal adjusted gross income is not more than $55,000 may claim a tax credit equal to the applicable percentage (up to 100%) of the qualified expenses incurred during the tax year for modifications to their residence, to make the home accessible to a person with a physical disability or a physical hardship who also lives or will live in the home. The credit is limited to $9,000.  The credit may not exceed the tax liability of the taxpayer; however, unused credits may be carried forward for up to four taxable years following the year during which the credit was generated.  

 

Expenses that qualify for the credit are certified by the Maine State Housing Authority. The modifications must make the home more accessible for a person with a physical disability or a physical hardship who lives or will live at the residence to qualify. Some examples are:

  • changes to flooring to mitigate tripping hazards

  • installation of grab bars at plumbing fixtures

  • installation of access ramps

  • Moving control items such as light switches to within reach ranges

  • Adjustments to exterior site walking surfaces including any necessary grading

  • Creation of an accessible parking space

  • Widening of existing doorways for ease of access

  • installation of accessible door hardware;

  • adjustment of storage shelving and closet rods to within reach ranges

  • bathroom mirrors or medicine cabinets within lines of sight or reach ranges

  • roll-in showers

  • transfer seats in showers

  • tub seats

  • height adjustment of work counters in kitchens

  • front-controlled cooking appliances

  • alarm devices or doorbells for the hearing or visually impaired

  • lifts

 

For more information, program guidelines and application instructions, visit the Maine State Housing Authority website at:

www.mainehousing.org/programs-services/HomeImprovement/accessablehome, call 1-800-452-4668, or write to: Maine State Housing Authority, ATTN:  Department of Energy and Housing Services, 353 Water Street, Augusta, Maine  04330-4633.

 

Maine Capital Investment Credit
Maine Fishery Infrastructure Investment Tax Credit
New Markets Capital Investment Credit

A business that expands or begins operations in Maine for certain activities and that hires at least one additional employee for that activity may be eligible to participate in the Pine Tree Development Zone (“PTDZ”) program. Generally, in order to qualify, a business must be engaged in on of the following  activities: manufacturing, financial services, biotechnology, aquaculture and marine technology, composite materials technology, environmental  technology, advanced technologies for forestry and agriculture, information technology or precision manufacturing technology. 

To gain certification, the business must apply to the Department of Economic and Community Development and satisfy the statutory requirements. Applications are available online at: http://www.maine.gov/decd/start-grow/pine-tree/to_apply.shtml

Research Expense Tax Credit
Super Credit for Substantially Increased Research and Development
Seed Capital Investment Tax Credit

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©2020 by Denise Hue.