Senate unanimously supports improved access to capital for Maine businesses

Maine Seed Capital Tax Credit Program strengthened to encourage Maine investment

AUGUSTA—Today, the Senate enacted a measure to provide funding to help Maine businesses secure financing by extending and improving the successful Maine Seed Capital Tax Credit Program.

“We know this program helps Maine businesses,” said Senator Linda Valentino of Saco, the sponsor of the bill. “Expanding the program will help small businesses grow, and hire more Maine workers.”

The Maine Seed Capital Tax Credit Program provides tax credits to private equity investors who invest in eligible Maine businesses. In the past year, $4.67 million was invested in a dozen Maine companies. Since the creation of the program, 128 Maine companies have received capital.

Senator Valentino’s measure provides additional funding for the program, which for every $1 spent will yield $8 of investment.

“This is a proven, highly effective program that continues to generate new revenue and sustain job growth in Maine,” said Senator Anne Haskell of Portland, the chair of the Taxation Committee. “We need to keep these investment dollars in Maine.”

Access to venture capital has historically been difficult for Maine entrepreneurs. Maine lags far behind other New England states and the nation in average annual venture capital investment per capita, with only one-third the average annual investment per capita of Vermont and about one-ninth the annual investment in neighboring New Hampshire.

The bill, LD 743, “An Act To Extend and Improve the Maine Seed Capital Tax Credit Program,” will now be sent to the governor to become law.

Click to learn more about the Seed Capital Program