Mar, 12 2010 |
Two Bills Aimed at Increasing Investment in Maine Companies
LD1 "An Act To Stimulate Capital Investment for Innovative Businesses in Maine" and LD 1666 “An Act To Improve the Seed Capital Investment Tax Credit Program” are both designed to address the severe lack of early stage capital available to Maine Businesses. LD 1 awaits the Governor`s signature, while LD1666 was voted out of the Taxation Committee as "Unanimous Ought To Pass."
LD 1666 is designed to encourage equity and near equity investments in young business ventures, directly and through private venture capital funds. State income tax credits to investors for 60% of the cash equity they provide to eligible Maine businesses may be authorized. Investments may be used for fixed assets, research or working capital. The bill also provides a 50% credit to venture capital funds that meet certain criteria for distribution to their Limited Partners.
LD 1 would create incentives for money in the Public Employee Retirement System (PERS) that has already been targeted for equity investments to be placed in funds that are seeking to invest in innovative Maine businesses. To provide incentive to PERS to invest in Maine-interested funds, the state would create a mechanism to guarantee up to 80 percent of money put at risk in those Funds, up to a maximum of $20 million. It is similar to the kind of loan guarantees for economic development projects already carried out by the Finance Authority of Maine.
There is still work to be done before these bills are enacted into law. To learn how to help visit: http://www.techmaine.com/fund-of-funds-governor
The Portland Press Herald - March 6, 2010
Our View: Venture capital bills should be backed
"Everyone agrees that Maine`s traditional industries alone are not going to provide the jobs we need to recover from this recession. But if not them, then what is? At least part of the answer lies in new businesses in the technology sector that provide higher pay and more security than older businesses, which are now struggling with plant closures and layoffs. The challenge for public policymakers will be helping these new businesses get started to replace the jobs that have been lost and, eventually, allow the economy to grow."
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To learn more about how Maine will benefit from the Seed Capital Tax Credit visit: http://www.techmaine.com/LD1666-2
To learn more about LD1: "An Act To Stimulate Capital Investment for Innovative Businesses in Maine" visit: http://www.techmaine.com/fund-of-funds
