Maine R&D Tax Credit Filing Instructions

To claim the Research Expense Tax Credit in Maine, businesses generally need to follow federal guidelines for qualified research expenses as defined by Internal Revenue Code (IRC) Section 41, but only for research conducted within Maine. The credit itself is equal to 5% of qualified research expenses in excess of a base amount (the average research expense for the last three years), plus 7.5% of basic research payments. For corporations, the credit is limited to 100% of the first $25,000 in income tax liability determined before other credits, plus 75% of the tax amount exceeding $25,000. Any unused credit can be carried forward for up to 15 years. To make the state R&D tax credit claim, taxpayers must file the Maine Research Expense Tax Credit Worksheet, which is typically submitted along with their main tax return, such as Form 1120ME for corporations, or the appropriate form for pass-through entities. A copy of the federal Form 6765, “Credit for Increasing Research Activities,” and any other supporting documentation must be provided with the Maine tax return.

Maine Patent of the Year – 2024/2025

Running Tide Technologies Inc. has been awarded the 2024/2025 Patent of the Year for their innovative approach to ocean-based carbon removal. Their invention, detailed in U.S. Patent No. 11899004, titled ‘Systems and methods for monitoring ocean-based carbon dioxide removal devices and accumulation of a target product’, introduces a novel system designed to enhance the efficiency and effectiveness of carbon sequestration in marine environments.

Running Tide Technologies has developed a system that integrates passive substrates seeded with target products, such as algae, into ocean ecosystems. These substrates are equipped with sensors that monitor key characteristics of the target product, providing real-time data on biomass accumulation and carbon sequestration potential. The system’s design allows for the passive substrates to transition from a positively buoyant state to a negatively buoyant state, enabling them to sink and sequester carbon at deeper ocean levels.

This innovative approach addresses the growing need for scalable and verifiable carbon removal solutions. By combining marine biology with advanced sensor technology, Running Tide’s system offers a promising method for mitigating climate change. The ability to monitor and quantify carbon sequestration in real-time enhances the credibility and effectiveness of ocean-based carbon removal strategies, positioning Running Tide at the forefront of environmental innovation.