State Spotlight: Maine Dirigo Business Incentives

The Dirigo Business Incentives program offers significant tax savings, starting in 2025, to qualifying businesses in Maine planning capital investments or worker training programs. Qualified businesses must ensure they register for the program before undertaking any investment or training program they wish to use towards these credits.

Eligible Business Sectors include:

• Agriculture 
• Forestry
• Fishing
• Manufacturing
• Long-distance freight transportation
• Specific technology and research services 

Benefits include:

• 10% capital investment tax credit (5% in Cumberland, Sagadahoc, and York Counties)
• $2,000 per employee provided a qualified employee training program annually

The credit is capped at $2 million per business per year and can be taken over 5 years. The credit is refundable up to $500,000 per tax year, with the unused portion carrying forward to the succeeding four tax years. The qualified business must have over $50,000 of eligible capital investments annually to claim the credit.

Capital investments eligible for the tax credit must meet all the following criteria:

• Tangible personal property or real property with a depreciation life of 5 years or more
• Purchased on or after the date of the letter of certification issued by the Department of Economic and Community Development (DECD)
• Placed in service in Maine during the taxable year beginning after December 31, 2024
• Used exclusively in the qualified business activity described in the letter of certification

Example:

Farmer Don, a potato farmer in Aroostook County, Maine, receives his certification from DECD on January 15, 2025, and purchases $140,000 of eligible business property in March 2025. Farmer Don would be eligible for a 10% tax credit of the total investment over $50,000 yielding a $9,000 refundable tax credit (($140,000 – $50,000) x 10%). 

Your Farm Credit East Financial Services team is ready to help your business navigate and optimize these new business incentives. Reach out to us to learn more or review the content of our previous webinar! 

For detailed program information including further eligibility requirements and the application, interested producers should visit the Dirigo Business Incentives page (Dirigo Business Incentives | Office of Business Development) from Maine DECD.