Dirigo Business Incentives

Incentives Calculator - Get an estimate of the value of Dirigo and other key tax incentive programs for your business DECD is accepting applications for the Dirigo Business Incentives.  Apply Here The Dirigo Business Incentives program offers eligible businesses the opportunity to greatly reduce state taxes for up to 5 years when they make significant capital investments or provide qualified employee training in certain business sectors. Eligible sectors are: Agriculture, forestry and fishing Manufacturing Long-distance freight transportation Software publishing, data processing and computer design services Engineering, architecture and scientific research and development services Benefits 10% capital investment tax credit (5% capital investment tax credit in York counties) $2,000 per employee provided a qualified employee training program annually This credit capped at $2 million per business per year and can be taken over 5 years. This credit is refundable up to $500,000 per tax year. The qualified business must exceed $50,000 in eligible capital investment to claim annual tax credit. Eligible Capital Investments that exceed $50,000 in eligible business property: Eligible business property of the qualified business that is: Tangible personal property or real property (other than land) Purchased on or after the date of the letter of certification issued by the DECD; Placed in service in Maine during the taxable year beginning after December 31, 2024; Used exclusively in the qualified business activity described in the letter of certification; and Subject to an allowance of depreciation of 5 years or more, or would be subject to an allowance of depreciation of 5 years or more if the property had not been expensed under Section 179 of the Code. Eligible business property does not include: Property purchased or transferred from an affiliated business; Property located at a retail sales facility and used primarily in a retail sales activity; A vehicle upon which an excise tax under 36 chapter 111 has been imposed; A watercraft upon which an excise tax under 36 chapter 112 has been imposed; Property used to calculate the credit for rehabilitation of historic properties under 36 § 5219-BB; or Real property placed in service in Maine prior to the taxable year for which the DTC under 36 § 5219-AAA is sought. Eligible business property is used exclusively for a qualified business activity described in a letter of certification. The business must intend to place eligible business property into service or begin training as part of a qualified worker training program within two years of filing their application for certification. Capital investment or worker training begun prior to the issuance of a letter of certification will not be eligible for the credit. Qualified Employee Training Program: A qualified employee training program is: An apprenticeship program registered under the  Maine Apprenticeship Program An on-the-job training contract through a  Local Workforce Board A training provided by or approved for funding from the  Maine Community College System Education or training provided by the University of Maine System or other accredited university or college in this State The qualified trainings listed above must also meet the following criteria: Business pays more than $2,000 per participant. Minimum of 20 total training hours for each qualified employee. Business claims a minimum of 3 qualified employees in the tax year. How to Apply Businesses that meet the requirements of the program will receive the Dirigo Business Incentive. DECD is now accepting applications for the Dirigo Business Incentives.  Apply Here . Rulemaking The primary Dirigo Business Incentives statute is available here: Title 36, §5219-AAA: Dirigo business incentives program (maine.gov)