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
A qualified employee training program is defined as:
- A private training approved by DECD
- 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 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.
Benefits
- 10% capital investment tax credit (5% capital investment tax credit in Cumberland, Sagadahoc, and 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.
How to Apply
Businesses that meet the requirements of the program will receive the Dirigo Business Incentive.
DECD intends to begin accepting applications July 1, 2024, more information to come soon.
Annual Reporting Requirements
Businesses participating in the Dirigo Business Incentive program are required to file an annual report by March 15th each year. Participants will be sent an annual reminder and instructions for online filing of their annual report in late January.
Rulemaking
The primary Dirigo Business Incentives statute is available here:
Title 26 §5219-AAA. Dirigo business incentives program.
The rule text and a summary of comments and responses received during the rulemaking process are available here:
Dirigo Business Incentive Adopted Rule (PDF)
Dirigo Business Incentives Rulemaking Comments and Responses (PDF)