Tax ARTICLE - Maine's Business Equipment Tax Reimbursement (BETR) Program

In 1995 the State of Maine successfully created the Business Equipment Tax Reimbursement (BETR) Program. BETR refunds local property taxes on eligible business equipment and property to qualified Maine businesses. This 12 year reimbursement was created to encourage assistance for Maine businesses. In 2006, with installation of the Act to Replace Municipal Revenues Subject to the BETR, Maine eliminated the personal property tax on eligible business equipment (subject to assessment on or after April 1, 2008). Any purchases made from April 1, 2007 through March 31, 2008 are included in the first covered period of the new act.

Which Equipment is Eligible?

Eligible equipment is defined as any qualified business property placed in service for the first time in Maine after April 1, 1995.

Eligible Business Equipment

Those subject to property tax assessment on or after April 1, 2008 will find their eligible business equipment exempt from the Maine personal property tax. Any assets eligible for the property tax exemption do not qualify for BETR. Eligible property in service after April 1, 1995 and on or before April 1, 2007 does meet the criteria for BETR.

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So what is Qualified Property?

Qualified property can be identified as property used exclusively for a business purpose. Exclusions include land and buildings (and any attachments to land or buildings used to serve the building vs. the business). Examples of non-qualifying property include: heating, lighting, plumbing, and air conditioning. Office furniture is an exception – when the law was amended its reimbursement was discontinued beginning April 1, 1996. Yet, eligible property placed in service before that date continues to be eligible (for example: an office desk purchased between April 2, 1995 and March 31, 1996 may be continued to be claimed).

Timeframe

The BETR reimbursement is extended until further notice beyond 12 years for each piece of eligible property. The rate of reimbursement is 75% for eligible property taxes paid in the 13th reimbursement year.

Reimbursement and Duration

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