Maine · research and development · ME-RD-001
Research Expense Tax Credit
Publication revised September 24, 2026. Sourcebook page 134.
Credit amount / calculation
5% of excess qualified research expenses plus 7.5% of qualifying basic-research payments; long carryforward.
Business fit and eligible activity
Qualifying Maine research can produce an incremental credit for wood-products manufacturers. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.
Illustrative business benefit
A hardwood mill spends $320,000 on a documented project to improve recovery from low-grade logs using scanner changes, controlled test runs, software adjustments, and revised sawing patterns. Assume $200,000 is ultimately treated as the relevant qualified or excess research base. At 5%, the state credit would be about $10,000 before program caps and tax-liability limits. The company would need records showing the uncertainty, alternatives tested, people involved, and results - not simply a year-end estimate of 'engineering time.'
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Identify the technical uncertainty and start contemporaneous project records before trying to calculate the credit.
Official sources
- Maine Legislature - Title 36, section 5219-K (maine.gov)
- Maine Department of Economic and Community Development - Dirigo (maine.gov)
- Maine Revenue Services - Income Tax Credits (maine.gov)
- Maine Legislature - Title 36, section 5219-K (maryland.gov)
Related programs
Dirigo Capital Investment Credit
Generally 10% of qualified capital investment; 5% in three southern counties; annual caps and...
Generally 10% of qualified capital investment; 5% in three southern counties; annual caps and partial refundability apply.
Dirigo Training Credit
$2,000 per employee receiving qualifying training; at least three qualifying employees and 20...
$2,000 per employee receiving qualifying training; at least three qualifying employees and 20 training hours per employee.
Renewable Chemicals Tax Credit
$0.08 per pound of qualifying renewable chemical meeting the statutory biobased definition.
$0.08 per pound of qualifying renewable chemical meeting the statutory biobased definition.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship...
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship compliance, plus possible statutory bonuses.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method or the alternative simplified method. The latter generally...
Regular research-credit method or the alternative simplified method.
Rehabilitation Credit (Internal Revenue Code §47)
Generally 20% of qualified rehabilitation expenditures for a certified historic structure...
Generally 20% of qualified rehabilitation expenditures for a certified historic structure, claimed as provided by federal law.