Maine's Business Equipment Tax Reimbursement Program (betr)

The application period for refunds of property tax are assessed during 2010 is August 1, 2011 through December 31, 2011. The Business Equipment Tax Reimbursement Program (BETR) is designed to encourage new capital investment in Maine. The program reimburses local property taxes paid on most qualified business property. To qualify, qualified business property must have been first placed in service in Maine after April 1, 1995.

Please contact Feeley & Driscoll's New England Accounting team by Email or call us at 1 (888) 875-9770.

Classification of qualified business property for the BETR

Eligible equipment is qualified business property first placed in service in Maine after April 1, 1995 and before April 2, 2007. Certain retail property placed in service after April 1, 2007 may be eligible for the BETR program. "Qualified" property is property used or held exclusively for a business purpose and subject to an allowance for depreciation. It does not include land or buildings or attachments to land or buildings that are used to serve the building rather than the business. For example, standard heating, air conditioning, plumbing, lighting, etc. does not qualify. The program law was amended to discontinue reimbursements for office furniture (such as tables, chairs, desks, file cabinets and modular office furnishings) and lamps and lighting fixtures.

BETR Timeframe

Eligible business equipment first subject to property tax assessment on or after April 1, 2008 is exempt from Maine personal property tax. Eligible business equipment is property that would have ordinarily qualified for BETR reimbursement, except for equipment located at certain retail facilities. Property eligible for the property tax exemption does not qualify for BETR reimbursement. Eligible business property first placed in service after April 1, 1995 and on or before April 1, 2007 continues to qualify for BETR. Eligible property placed in service by certain retail facilities after April 1, 2007 will also be eligible for BETR.

In addition, the BETR reimbursement period is expanded indefinitely beyond 12 years for each piece of eligible equipment, with a 75% reimbursement rate for eligible property taxes paid in the 13th reimbursement year and 70% reimbursement for taxes paid in the 14th year. The reimbursement rate is further reduced by five percentage points annually beginning with the 15th year of BETR reimbursement until the rate is 50% for years beyond the 17th year of reimbursement for each piece of eligible equipment.

Additional resources can be found on the Maine Revenue Service's website here.

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