An Act To Promote Research And Development In The State By Amending The Research Expense Tax Credit

LD 926 increases Maine’s research expense tax credit by doubling the credit rate from 5% to 10% (and 7.5% to 15% for basic research payments) and doubling the maximum credit amount from $25,000 to $50,000. It also reduces the base amount used to calculate the credit from 50% to 25% of a business’s average prior-year research spending in Maine. The bill requires the State Tax Assessor to annually report R&D spending data, credit claims, and economic impact metrics (like job growth and GDP contributions) to the Department of Economic and Community Development and the Legislature starting in 2027. This directly affects Maine-based businesses claiming the credit for qualified research costs conducted within the state.