January 25, 2011
309 Cumberland Avenue
Portland, ME 04101
CONTACT: Kimberly Ballard
GrowSmart Maine testifies in favor of LD 22,
“An Act to Improve the Maine Seed Capital Tax Credit”
January 20, 2011
On January 20th, Nancy Smith, Executive Director of GrowSmart Maine, submitted written testimony to the Joint Standing Committee on taxation in favor of LD 22, “An Act to Improve the Maine Seed Capital Tax Credit” sponsored by Representative Linda Valentino of Saco.
As a part of our on-going effort to help grow Maine’s economy, GrowSmart Maine is particularly enthusiastic about innovative proposals such as LD 22 which seek to grow the economy in a sustainable manner while at the same time preserving our state’s unique character and quality of place. GrowSmart Maine believes that the proposals included in LD 22 will help strengthen and improve the Seed Capital Investment Tax Credit Program which fits the criteria of an innovation-based economic proposal and urged the Taxation Committee to support the passage of this bill.
In particular, GrowSmart Maine strongly endorsed the following proposals which are included in LD 22:
- Increases the existing credit from 40% of an eligible investment to 60% statewide for the tax years beginning in tax year 2012; and
- Authorizes a refundable tax credit of 50% for investments in eligible businesses by private venture capital funds.
In endorsing this bill which seeks to improve an already innovative economic development program, GrowSmart Maine wished to emphasize that despite its past record of success in providing much-needed start-up capital for businesses in Maine, the Seed Capital Investment Tax Credit Program needs to be expanded to effectively impact the current economic downturn which has resulted in a dearth of new investment capital in Maine. In other words, like most successful programs, this program needs to be adjusted and expanded in a manner which effectively addresses Maine’s intention to promote innovative approaches to improving Maine’s economy. GrowSmart Maine also strongly supports the provisions in LD 22 which makes the tax credit refundable to provide an additional incentive for investment in Maine's businesses. The Taxation Committee will hold a work session on LD22 on Thursday, Jan27th at 1pm in Room 127 of the State House.
GrowSmart Maine promotes sustainable prosperity for all Mainers by integrating working and natural landscape conservation, economic growth and community revitalization. We promote Quality of Place by convening and engaging in public conversations about Maine’s future, contributing common sense policy analysis, educating the public, advocating for state and local change and supporting model practices. For more information or to get involved, visit www.growsmartmaine.org or call 207.699.4330.