State Credit Name: Research expense tax credit (5219-K); and Super Credit for Substantially Increased Research and Development (5219-L).
Expiration Date: Both permanent
Who Can Apply? Corporations and flow-through entities can apply for both.
Credit Carry Forward: 5219-K can be carried forward for 15 years and 5219-L can be carried forward for 5 years.
About the Credit:
- 5219-K: The credit is equal to 5% of the excess of the QRE’s for the taxable year over the base amount and 7.5% of the basic research payments as described in the federal research credit.
- 5219-L: Taxpayers that qualify for the 5219-K and are allowed an additional credit equal to the excess of QRE’s for the taxable year over the super credit base amount. The super credit base amount means the average amount spent on qualified research expenses by the taxpayer in the 3 taxable years prior to June 12, 1997.
Notes: All qualifying research activities must take place in Maine.
- 5219-K: The credit cannot decrease the tax liability to less than zero. The credit is limited to 100% of a corporation’s first $25,000 of tax due, plus 75% of the corporation’s tax due in excess of $25,000. Supporting documents must be attached to the application.
- 5219-L: The credit is limited to 50% of the taxpayer’s tax liability after the application of any other existing credits. The credit can not be used to decrease the taxpayer’s tax due to less than the amount of tax liability in the previous taxable year after the application of any other existing credits.
Click here to find out if you qualify for the federal research credit.
Contact your local Swanson Reed office to speak with a representative in your area today.