Business Resources & Incentives

State of Maine Development Incentives

State of Maine Sales Tax Exemptions

Maine state sales tax exemptions are available for manufacturing, research and development, custom computer programming, fuel and electricity, biotechnology and clean fuel vehicle sales.

• Manufacturing: Sales of machinery and equipment used by the purchaser directly and primarily in the production of tangible personal property for later sale or use is eligible for a sales tax exemption. In addition, items consumed or destroyed directly or primarily in production, and repair and replacement parts for qualified production equipment are exempt from sales tax.
• Fuel and Electricity For Use In Manufacturing: Manufacturers are exempt from paying 95% of the sales tax on fuel and/or electricity used in the manufacturing operation.
• Research and Development: Sales of machinery and equipment used by the purchaser directly and exclusively in research and development is eligible for a sales tax exemption.
• Custom Computer Programming: Any custom computer programming purchased by a business is exempt from sales tax. If a standard program is purchased, then customized, the cost of the standard program would be taxable and the customizing, if separately stated, would be nontaxable.
• Biotechnology: Sales of machinery, equipment, instruments and supplies used by the purchaser directly and primarily in a biotechnology application are eligible for a sales tax exemption.
• Partial Clean Fuel Vehicle Sales Exemption: For businesses that sell clean fuel vehicles. For industrial users, view the Blanket Certificate of Exemption (PDF).

Efficiency Maine

Efficiency Maine has programs for businesses of all sizes, including multifamily buildings with five units or more and Maine's largest energy customers. Learn more about Efficiency Maine's programs for the Commercial and Industrial Sector:

• C and I Prescriptive Program (fixed or "prescriptive incentives" to reduce the cost of projects that help your business use energy more efficiently)
• C and I Custom Program (custom projects that result in electric or thermal savings)
• Maine Advanced Buildings (incentives for new construction and major renovation projects)
• Distributor Screw-In LED Program (Efficiency Maine helps participating distributors offer qualifying screw-in LEDs at reduced prices)

Locate and contact an Efficiency Maine Qualified Partner to find out more about Efficiency Maine programs for your business.

The Maine Quality Centers (MQC)

The Maine Quality Centers provide customized workforce training grants for Maine employers seeking to locate or expand their operations in Maine or who are interested in providing training to their incumbent workers. Training programs are coordinated and delivered through Maine's seven community colleges, and their staff will work with you to design a program that delivers the training the company needs when and where it is needed.

What MQC offers:

• Classes Delivered at Your Worksite or on Campus
• Customized Training, Consultation, and Curriculum
• Flexible Scheduling-Days, Evenings, Weekends
• Grants to Help Cover the Cost of Customized Training for Workers or Recruits (Apply for Grant Funding (PDF))
• Incumbent Worker Training
• Post-Hire Training for New Hires
• Pre-Hire Training for Potential Hires
• Recruitment Assistance-Advertising and Screening
• Targeted Training for Industry Certifications

Pine Tree Development Zone

Note: Only businesses located on the Brunswick Landing are eligible. Maine's "enterprise zone" program offers qualifying businesses the opportunity to reduce or even eliminate state taxes for up to ten years. Qualified businesses that hire a minimum of one net new qualified employee may qualify for the following Pine Tree Development Zone (PTDZ) tax:

• Corporate Income Tax Credit (100%, Years 1 to 5; 50%, Years 6 to 10).
• Employment Tax Reimbursement (80%, Years 1 to 10): the tax reimbursement benefit derives from employment/payroll taxes withheld for net new jobs created.
• Sales and Use Tax (100% Personal Property Exemption, Years 1 to 10): Qualified businesses pay no tax on all new tangible personal property purchases for its qualified business activity.
• Sales and Use Tax (100% Real Property Reimbursement, Years 1 to 10): Qualified businesses pay no tax on all new tangible property purchases that are to be physically incorporated in, and become a permanent part of, real property of qualified business and used in its qualified business activity.
• Access to reduced electricity rates: as requested by Central Maine Power and approved by the Public Utilities Commission.
• Insurance Premiums Tax Credit (100%, Years 1 to 5; 50%, Years 6 to 10): only applies to Financial Services sector

Lending Resources

Finance Authority of Maine (FAME)

FAME, Maine's business and higher education finance authority, provides loan guarantees, direct lending and equity-like, patient capital to businesses located in Maine. View more information regarding FAME financing programs, including loan applications.

Loan Insurance Program

FAME's Loan Insurance Program insures a portion of a loan (up to 90% loan insurance on pro-rata basis or up to 25% on leveraged basis) to a business made by a participating financial institution.

• Eligible Uses of Funds: Machinery and equipment, working capital and refinancing of existing debt (under certain conditions)
• Interest Rate: Determined by lender
• Term: Consistent with the useful life of the assets being financed or provided as collateral
• Other: Unlimited personal guarantees of business principals, secured by personal assets (where available), are generally required

To access FAME's Loan Insurance Program, businesses should apply for a commercial loan from a private bank or credit union.

Economic Recovery Loan Program

Provides subordinate debt or gap financing of up to $750,000 to assist businesses in remaining viable and/or improving productivity. To be eligible, Maine-based businesses must exhibit a reasonable ability to repay the loan and demonstrate that other sources of capital have been exhausted.

• Eligible Uses of Funds: Machinery and equipment, working capital and refinancing of existing debt (under certain conditions)
• Interest Rate: Fixed at Prime plus 2%
• Term: Maximum of five years. Amortization based upon the borrower's cash flow and useful life of assets being financed or additional collateral pledged
• Other: Unlimited personal guarantees of the business principals, secured by personal assets (where available), are required

Maine Seed Capital Tax Credit Program

This program is designed to encourage equity and near-equity investments in eligible Maine businesses, directly and through private venture capital funds. FAME may authorize State income tax credits to investors for up to 60% of the cash equity they provide to eligible Maine businesses. Investments may be used for fixed assets, research or working capital.

Small Enterprise Growth Fund (SEGF)

The SEGF is a professionally managed venture capital fund that invests exclusively in Maine companies who demonstrate a potential for high growth and public benefit. SEGF initial investments are typically $100,000 to $300,000 per company, with additional capital available to continue to support the business. SEGF can provide only 50% of the capital raised in any financing round. The Fund has been actively investing in Maine companies since 1997, after its creation by an act of the Maine Legislature in 1995 to provide Maine companies and entrepreneurs access to patient sources of venture capital. The fund has received $13 million in capital contributions from the State of Maine and operates as a revolving, "evergreen" fund.

Maine Technology Institute

The Maine Technology Institute (MTI) is an industry-led, publicly funded, non-profit corporation that offers early-stage capital and commercialization assistance in the form of competitive grants, loans and equity investment for the research, development and application of technologies that create new products, processes and services, generating high-quality jobs across Maine. MTI offices are located in Brunswick.