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LD 926

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

132nd Legislature (2025-2026) Introduced by Marc Malon and 5 co-sponsors

Maine bill amends research tax credit program to incentivize private sector R&D activity and potentially boost state competitiveness for research investment and employment.

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
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Bill Summary · LD 926

Legislative bill overview

LD 926 would amend Maine's Research Expense Tax Credit program to promote private sector research and development activities within the state. The specific amendments would modify how businesses can claim tax credits for qualifying research expenditures. This bill aims to make Maine more competitive for R&D investment by improving the tax incentive structure.

Why is this important

Tax credits for research expenses directly influence whether companies conduct R&D operations in Maine versus competing states, potentially affecting job creation and economic growth in high-skill sectors. The effectiveness of these credits determines state tax revenue loss against potential gains in business investment, wages, and innovation activity. States actively compete for R&D headquarters and facilities, making these incentive structures economically significant.

Potential points of contention

  • Fiscal cost uncertainty: Tax credit expansions reduce state revenue; the actual cost and economic return on investment are unclear without detailed fiscal analysis of the bill's specific amendments
  • Equity concerns: R&D tax credits often benefit larger corporations over small businesses and startups, potentially concentrating economic benefits among established firms
  • Effectiveness questions: Research shows mixed results on whether tax credits actually drive new R&D activity or simply subsidize research companies would conduct anyway, making the incentive's true value debatable

Compiled from official sources — confirm details with the bill’s official record.

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