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03. What is eligible equipment?

The simple answer is that eligible equipment is qualified business property first placed in service in Maine after April 1, 1995. "Qualified" property is property used or held exclusively for a business purpose and subject to an allowance for depreciation. It does not include land or buildings or attachments to land or buildings that are used to serve the building rather than the business. For example, standard heating, air conditioning, plumbing, lighting, etc. does not qualify. The program law was amended to discontinue reimbursements for office furniture (such as tables, chairs, desks, file cabinets and modular office furnishings) and lamps and lighting fixtures. These changes apply to tax years beginning after April 1, 1996. However, property placed into service prior to that date and otherwise eligible for the program will continue to be eligible. For example, if you placed an office desk in service on April 2, 1995 you may continue to claim that item, whether you claimed it the first year or not.

Eligible business equipment first subject to property tax assessment on or after April 1, 2008 will be exempt from Maine personal property tax. Eligible business equipment is property that would have ordinarily qualified for BETR reimbursement, except for equipment located at certain retail facilities. Property eligible for the property tax exemption does not qualify for BETR reimbursement. Eligible business property first placed in service after April 1, 1995 and on or before April 1, 2007 continues to qualify for BETR. Eligible property placed in service by certain retail facilities after April 1, 2007 will also be eligible for BETR. In addition, the BETR reimbursement period is expanded indefinitely beyond 12 years for each piece of eligible equipment, with a 75% reimbursement rate for eligible property taxes paid in the 13th reimbursement year. The reimbursement rate is further reduced by five percentage points annually beginning with the 14th year of BETR reimbursement until the rate is 50% for years beyond the 17th year of reimbursement for each piece of eligible equipment.

Rev. 6/28/07

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