Coastal Enterprises Inc. of Wiscasset and its for-profit arm, CEI Capital Management of Portland, have been allocated millions in two new market tax credit and capital investment programs.
The U.S. Department of Treasury awarded CEI $95 million as part of its New Markets Tax Credit program, according to a press release from U.S. Sen. Olympia Snowe. The program provides a 39% federal tax credit for investments made in community development entities like CEI that finance businesses and economic development projects. The Treasury Department, however, did not approve Midcoast Regional Redevelopment Authority's application to be a NMTC allocatee and receive funding for redeveloping the former Brunswick Naval Air Station.
The Finance Authority of Maine also recently announced that CEI Capital Management was allocated $41.7 million through the newly created Maine New Markets Capital Investment Program, according to a press release. The program, established last year, is modeled after the federal NMTC program and is designed to attract investment in economically distressed areas. Eligible investors are allowed to claim tax credits against state taxes of up to 39% of the project's total cost. FAME administers the program along with Maine Revenue Services. Allocatees have two years to utilize their tax credit allocations. FAME also allocated the same amount of funding to six other out-of-state entities.