July 25, 2011
AUGUSTA – A bill, sponsored by Rep. Linda Valentino, D-Saco, to provide tax credits for new venture or “seed” capital investment was signed into law on July 8.
“This is a jobs bill that will entice venture capital firms to invest in Maine,” said Valentino, who worked diligently to secure support for the program during the legislative session. “As we begin our fragile recovery from the recession, the time is ripe for increasing our investments in the seed capital program, which will yield more high quality jobs and spur investment in our state.”
The law proposes an increase in the Maine Seed Capital Tax Credit Program from 40 to 60 percent and also creates a refundable 50 percent tax credit for venture capital funds making eligible investments.
“The program can offer a strong boost to our state’s economic growth and our effort to take innovative approaches to development,” said Rep. Valentino.
The per capita level of private venture capital investment in businesses located in the state is substantially below the national average and the average of the other New England states.
“The jobs created by venture capital investment tend to pay higher wages and offer better benefits,” said Valentino.
The bill was passed unanimously in the State House and Senate before being signed into earlier this month by Governor Paul LePage. The law will becomes effective 90 days following adjournment of the First Regular Session of the 125th Legislature.
Jodi Quintero [Valentino] 287-1488, c. 841-6279