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September 29, 2011
AUGUSTA –A new law to expand tax credits for venture or “seed” capital investment took effect on Sept. 29.
“This is a jobs bill that will attract new capital investments in Maine,” said Valentino, who worked diligently to secure support for the program during the legislative session. “The program gives investors another reason to look more favorably on spending their money on Maine entrepreneurs and small businesses.”
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 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 expanded tax credit gives investors a larger incentive to come to Maine and create much needed jobs,” said Valentino.
Bill Norbert of the Finance Authority of Maine also praised the new law. “FAME welcomes increased usage of the Seed Capital Tax Credit and the opportunity to spur increased investment in Maine's economy."
Ernst and Young rated Maine as having some of the best tax rates for business investment in the country because of targeted tax policies like these that Democrats passed a few years ago.
Valentino’s bill, LD 22, was passed unanimously by the Maine Legislature and signed into law by the governor. New laws take effect 90 days after the Maine Legislature adjourns unless specified otherwise.
Contact:
Jodi Quintero [Valentino], 287-1488, c. 841-6279
Photo: Rep. Valentino (D-Saco) and Bill Norbert from the Finance Authority of Maine discuss the newly expanded Maine Seed Capital Tax Credit Program.