Thermogen, Mölnlycke clear tax credit hurdle
Cate Street Capital subsidiary Thermogen I LLC and Brunswick-based wound-care dressing manufacturer Mölnlycke have cleared the first hurdle in securing tax credits on investments of nearly $50 million through the New Markets Capital Investment Program.
The Finance Authority of Maine certified the applications of both companies earlier this month, giving both Thermogen and Mölnlycke 180 days to make the investments. If the companies make that deadline, they will qualify for refundable state tax credits of up to 39% to investors in qualified community development entities, like the Portland-based CEI Capital Management, over seven years.
In a press release, FAME indicated Thermogen received initial certification for $40.4 million in investments in its Millinocket torrefied wood project and Mölnlycke received approval for proposed investments of $10 million that would install new machinery at its Brunswick facility and help to move manufacturing from Finland to Maine.
Mölnlycke stands to receive $3.9 million in state tax credits and Thermogen stands to receive $15.8 million in state tax credits. Separately, FAME is reviewing a $25 million bond for Thermogen through its Major Business Expansion Program.
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