Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that amends the Maine New Markets Capital Investment Program and establishes the "program 2 tax credit authority."

Highlights:

• Amends the Maine New Markets Capital Investment Program and the new markets capital investment income tax credit to establish a new tax credit authority, referred to as "the program 2 tax credit authority," for tax credit authority allocated by the Finance Authority of Maine on or after January 1, 2026 (Sec. 1-11).

• Establishes an application process for community development entities recognized as Maine funds and diverse Maine funds to receive an allocation of tax credit authority (Sec. 1-11).

• Specifies that the effect of this change on the Maine New Markets Capital Investment Program is to shorten the period, from 24 months to 6 months after receipt of the notice of allocation of the tax credit authority, by which a community development entity must issue the equity investments or debt securities and receive cash in the total amount of tax credits authorized (Sec. 1-11).

• Specifies that the limit on the amount of tax credits authorized is unchanged (Sec. 1-11).

• Specifies that the effect of this change on the new markets capital investment tax credit is to shorten the time, from 24 months to 12 months after issuance of the qualified equity investment, by which a community development entity must invest at least 85% of the purchase price of the qualified equity investment in qualified low-income community investments before recapture of the credit is allowed (Sec. 1-11).

• Amends and makes changes to the new markets capital investment tax credit provisions to integrate impact qualified equity investments into the existing provisions governing the eligibility for an allocation of tax credits under the Maine New Markets Capital Investment Program (Sec. 1-11).

• Defines "impact qualified equity investment" as a qualified equity investment if the cash purchase price is used to make an investment in a qualified active low-income community business, which is a corporation, including a nonprofit corporation, that serves economically disadvantaged areas, that has a principal business operations location in this State and that is more than 50% owned by individuals who are (Sec. 1-11):

• Racial or ethnic minorities;

• Members of a federally recognized Indian nation, tribe, or band; or 

• Veterans who are disabled.

• Specifies that the Finance Authority of Maine is required to certify $30,000,000 in impact qualified equity investments, which may be made in exchange for tax credits (Sec. 1-11).

• Requires 50% of impact-qualified equity investments must be reserved for diverse Maine funds, which are community development financial institutions that have their principal place of business in this State and are more than 50% owned and controlled by individuals who are racial or ethnic minorities or members of a federally recognized Indian nation, tribe or band in this State or are governed by a board of directors more than 50% of which is composed of individuals who are racial or ethnic minorities or members of a federally recognized Indian nation, tribe or band in this State (Sec. 1-11).

• Specifies that the maximum amount of an investment made with a qualified equity investment by a qualified community development entity in a qualified active low-income community business is $5,000,000 (Sec. 1-11).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends the Maine New Markets Capital Investment Program and establishes the "program 2 tax credit authority."

Highlights:

• Amends the Maine New Markets Capital Investment Program and the new markets capital investment income tax credit to establish a new tax credit authority, referred to as "the program 2 tax credit authority," for tax credit authority allocated by the Finance Authority of Maine on or after January 1, 2026 (Sec. 1-11).

• Establishes an application process for community development entities recognized as Maine funds and diverse Maine funds to receive an allocation of tax credit authority (Sec. 1-11).

• Specifies that the effect of this change on the Maine New Markets Capital Investment Program is to shorten the period, from 24 months to 6 months after receipt of the notice of allocation of the tax credit authority, by which a community development entity must issue the equity investments or debt securities and receive cash in the total amount of tax credits authorized (Sec. 1-11).

• Specifies that the limit on the amount of tax credits authorized is unchanged (Sec. 1-11).

• Specifies that the effect of this change on the new markets capital investment tax credit is to shorten the time, from 24 months to 12 months after issuance of the qualified equity investment, by which a community development entity must invest at least 85% of the purchase price of the qualified equity investment in qualified low-income community investments before recapture of the credit is allowed (Sec. 1-11).

• Amends and makes changes to the new markets capital investment tax credit provisions to integrate impact qualified equity investments into the existing provisions governing the eligibility for an allocation of tax credits under the Maine New Markets Capital Investment Program (Sec. 1-11).

• Defines "impact qualified equity investment" as a qualified equity investment if the cash purchase price is used to make an investment in a qualified active low-income community business, which is a corporation, including a nonprofit corporation, that serves economically disadvantaged areas, that has a principal business operations location in this State and that is more than 50% owned by individuals who are (Sec. 1-11):

• Racial or ethnic minorities;

• Members of a federally recognized Indian nation, tribe, or band; or 

• Veterans who are disabled.

• Specifies that the Finance Authority of Maine is required to certify $30,000,000 in impact qualified equity investments, which may be made in exchange for tax credits (Sec. 1-11).

• Requires 50% of impact-qualified equity investments must be reserved for diverse Maine funds, which are community development financial institutions that have their principal place of business in this State and are more than 50% owned and controlled by individuals who are racial or ethnic minorities or members of a federally recognized Indian nation, tribe or band in this State or are governed by a board of directors more than 50% of which is composed of individuals who are racial or ethnic minorities or members of a federally recognized Indian nation, tribe or band in this State (Sec. 1-11).

• Specifies that the maximum amount of an investment made with a qualified equity investment by a qualified community development entity in a qualified active low-income community business is $5,000,000 (Sec. 1-11).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the Maine New Markets Capital Investment Program and establishes the "program 2 tax credit authority."

Highlights:

• Amends the Maine New Markets Capital Investment Program and the new markets capital investment income tax credit to establish a new tax credit authority, referred to as "the program 2 tax credit authority," for tax credit authority allocated by the Finance Authority of Maine on or after January 1, 2026 (Sec. 1-11).

• Establishes an application process for community development entities recognized as Maine funds and diverse Maine funds to receive an allocation of tax credit authority (Sec. 1-11).

• Specifies that the effect of this change on the Maine New Markets Capital Investment Program is to shorten the period, from 24 months to 6 months after receipt of the notice of allocation of the tax credit authority, by which a community development entity must issue the equity investments or debt securities and receive cash in the total amount of tax credits authorized (Sec. 1-11).

• Specifies that the limit on the amount of tax credits authorized is unchanged (Sec. 1-11).

• Specifies that the effect of this change on the new markets capital investment tax credit is to shorten the time, from 24 months to 12 months after issuance of the qualified equity investment, by which a community development entity must invest at least 85% of the purchase price of the qualified equity investment in qualified low-income community investments before recapture of the credit is allowed (Sec. 1-11).

• Amends and makes changes to the new markets capital investment tax credit provisions to integrate impact qualified equity investments into the existing provisions governing the eligibility for an allocation of tax credits under the Maine New Markets Capital Investment Program (Sec. 1-11).

• Defines "impact qualified equity investment" as a qualified equity investment if the cash purchase price is used to make an investment in a qualified active low-income community business, which is a corporation, including a nonprofit corporation, that serves economically disadvantaged areas, that has a principal business operations location in this State and that is more than 50% owned by individuals who are (Sec. 1-11):

• Racial or ethnic minorities;

• Members of a federally recognized Indian nation, tribe, or band; or 

• Veterans who are disabled.

• Specifies that the Finance Authority of Maine is required to certify $30,000,000 in impact qualified equity investments, which may be made in exchange for tax credits (Sec. 1-11).

• Requires 50% of impact-qualified equity investments must be reserved for diverse Maine funds, which are community development financial institutions that have their principal place of business in this State and are more than 50% owned and controlled by individuals who are racial or ethnic minorities or members of a federally recognized Indian nation, tribe or band in this State or are governed by a board of directors more than 50% of which is composed of individuals who are racial or ethnic minorities or members of a federally recognized Indian nation, tribe or band in this State (Sec. 1-11).

• Specifies that the maximum amount of an investment made with a qualified equity investment by a qualified community development entity in a qualified active low-income community business is $5,000,000 (Sec. 1-11).

Full Bill Text