Program Summary. The Pine Tree Development Zone Program legislation
introduced by Governor John Baldacci in early 2003 and enacted by a
two-thirds majority vote of the Maine Legislature later that year,
uses a comb-ination of tax incentives to spur economic development in
targeted areas of the state where unemployment is relatively high,
and wages are relatively low.
Benefits Highlighted. In addition to existing incentive programs,
such as business equipment tax reimbursement, job training, and financing
programs, effective January 1, 2004, qualified new and expanding businesses
have access to:
- An enhanced ETIF
(Employment Tax Increment Financing) program that returns to the company
a portion of the state income tax withheld from the pay of 5 or
more net, new employees for up to ten years;
- A 100% refund of corporate income tax and insurance premium tax for
years one through five, and 50% for years six through ten;
-
A local option TIF (Tax Increment Financing) that may return some or
all of the new property to a company and will not be counted against
a municipality’s existing TIF area and value caps;
- (Effective July 1, 2005) a 100% sales and use tax exemption for zone-related
construction materials and equipment purchases.
- Reduced electricity rates as requested by Central Maine Power, Bangor
Hydro Company and Maine Public Service Company and approved by the
Public Utilities Commission.
All Pine Tree Development
Zone benefits can be “layered” over
other available benefits:
- Municipal
TIF’s
- Community Development Block Grants
- Maine Technology Institute Seed Grants
- Maine Seed Capital Tax Credit
- Maine Small Enterprise Growth Fund
- Federal New Markets Tax Credits
Eligible Businesses. Eligible
businesses include firms engaged in manufacturing, financial services
and Maine’s seven targeted
technology sectors: biotechnology, aquaculture and marine technology
composite materials technology, environmental technology, advanced
technologies for forestry and agriculture, information technology and
precision manufacturing technology.
For more information about the Kennebec Valley Pine Tree Development
Zones incentives please contact Ken Young, kyoung@kvcog.org.
