An Act To Create A Refundable Tax Credit For Agricultural Enterprises

LD 1699 creates a refundable tax credit allowing investors to receive 40% of their cash investment in eligible Maine agricultural enterprises as a tax credit, effective April 1, 2025. It directly affects investors who fund Maine farms or agricultural businesses that certify the investment is necessary for expansion. The credit is limited to $3.5 million per agricultural enterprise over the credit's lifetime and $2 million per calendar year. To qualify, the agricultural enterprise must sell products primarily outside Maine (though sales inside are permitted) and meet specific expansion criteria. This replaces previous rates for agricultural investments and modifies existing tax credit rules under Maine law.