- Research Expense Tax Credit (R&D Credit) – Credit for qualifying research expenses in Maine.
- Maine Revised Statutes Title 36, § 5219-K – Statute establishing the Maine R&D tax credit.
- Maine Revenue Services (MRS) – Agency administering Maine’s tax laws and revenue.
- Qualified Research Expenses (QREs) in Maine – Eligible costs for the research tax credit.
- Internal Revenue Code (IRC) Section 41 – Federal law defining the R&D tax credit.
- IRC Section 41(d) (Qualified Research Definition) – Federal criteria defining qualified research activities.
- Base Amount (for § 5219-K) – Benchmark to calculate excess research expenses.
- Average Amount Per Year Spent (3 Previous Taxable Years) – Average QREs from previous three years.
- Credit Percentage (5% of Excess QREs) – Rate applied to excess qualified research expenses.
- Basic Research Payments (BRP) – Payments to qualified organizations for research.
- BRP Credit Percentage (7.5% of BRP) – Rate applied to basic research payments.
- Qualified Organization Base Period Amount – Minimum basic research spending requirement.
- Controlled Group of Corporations (IRC § 41(f)(1)(A)) – Related businesses treated as a single taxpayer.
- Tax Due Under This Part (Maine Income Tax) – Income tax liability against which credit applies.
- Tax Due Before Allowance of Any Credits – Tax liability calculated before applying credits.
- Credit Limitation: First $25,000 in Tax Due (100%) – Credit offsets first $25,000 of tax fully.
- Credit Limitation: Tax in Excess of $25,000 (75%) – Credit offsets 75% of tax over $25,000.
- Nonrefundable Credit – Credit cannot trigger a tax refund.
- Carryover to Succeeding Years (Unused Credit) – Unused credits applied to future tax years.
- Carryover Period (15 Taxable Years) – Unused credits valid for fifteen years.
- Reduction to Less Than Zero (Credit Restriction) – Credit cannot reduce tax below zero.
- Corporations Filing Combined Return – Affiliated groups filing a single tax return.
- Credit Generated by an Individual Member Corporation – Credit earned by specific group member entity.
- Tax Due Attributable to That Company – Tax liability specifically allocated to one member.
- Excess Research and Development Credit (Transfer between members) – Unused credit assigned to other group members.
- Individual Corporation (Carryover by Entity) – Carryover stays with the specific entity.
- State Tax Assessor (Authority to Adopt Rules) – Official empowered to regulate tax administration.
- Pass-Through Entities (S Corps, Partnerships, LLCs) – Businesses passing income and credits to owners.
- Maine Form 1120ME (Corporate Tax Return) – Tax return form for Maine corporations.
- Maine Research Expense Tax Credit Worksheet – Tool for calculating the R&D credit amount.
- IRS Form 6765 (Required Federal Documentation) – Federal form calculating the research credit amount.
- Super Credit for Substantially Increased R&D (§ 5219-L) (Repealed) – Retired credit for major R&D increases.
- Super Credit Base Amount (Former § 5219-L Term) – Benchmark for the repealed super credit.
- Taxpayer’s Tax Due in the Preceding Taxable Year (Former § 5219-L Limit) – Limit based on prior year’s tax.
- Qualified Research Conducted in This State (Maine) – Research activities occurring specifically within Maine.
- Technological in Nature (Four-Part Test) – Relies on principles of physical or biological science.
- Elimination of Uncertainty (Four-Part Test) – Research intended to discover unknown information.
- Process of Experimentation (Four-Part Test) – Evaluating alternatives to overcome technical uncertainty.
- Business Component (Four-Part Test) – Product or process being improved or developed.
- In-House Research Expenses – Wages and supplies for internal research activities.
- Contract Research Expenses – Payments to third parties for research services.
- Wages for Qualified Services – Pay for employees conducting qualified research.
- Supplies for Qualified Research – Materials consumed during the research process.
- Custom Computer Programming (Sales Tax Exemption) – Tax exemption for custom software development.
- Industrial Users Blanket Sales Tax Certificate of Exemption – Certificate claiming sales tax exemption for industry.
- R&D Sales Tax Exemption (Machinery and Equipment) – Tax exemption for R&D equipment purchases.
- Machinery and Equipment Used Directly and Exclusively in R&D – Tools used solely for research activities.
- Taxable Year Beginning On or After January 1, 1996 – Effective date for specific tax provisions.
- Affiliated Groups (Unitary Business for Apportionment) – Related companies apportioning income as one unit.
- Qualified Research Organization (Recipient of BRP) – Entity eligible to receive basic research payments.
