Maine · Investment · ME-DIRIGO-CAP-001
Dirigo Capital Investment Credit
Publication revised September 24, 2026. Sourcebook page 130.
Credit amount / calculation
Generally 10% of qualified capital investment; 5% in three southern counties; annual caps and partial refundability apply.
Business fit and eligible activity
Exceptional fit: eligible sectors expressly include forestry/fishing and manufacturing, so both some forest operations and mills can qualify. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Illustrative business benefit
A sawmill invests $1.50 million in qualifying production machinery. At 10%, the nominal credit is $150,000 before annual caps, tax-liability limits, carryforward rules, or negotiated adjustments. The company should isolate eligible machinery from buildings, vehicles, land, and other costs that the statute does not treat the same way. Page
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity. Certified activity must be intended to begin within two years of application; benefits may run up to five years. Obtain the certification letter before starting the capital investment or training.
Official sources
Related programs
Dirigo Training Credit
$2,000 per employee receiving qualifying training
Eligible forestry and manufacturing businesses can receive a credit for qualified employee training.
Renewable Chemicals Tax Credit
$0.08 per pound of qualifying renewable chemical meeting
Potentially relevant when wood residuals are converted into qualifying renewable chemicals rather than fuels.
Research Expense Tax Credit
5% of excess qualified research expenses plus 7
Qualifying Maine research can produce an incremental credit for wood-products manufacturers.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.