Pine Tree Development Zone(PTZ):

The Pine Tree Development Zone Initiative provides qualified businesses that meet PTZ requirements with up to 10 years of tax incentives such as:

  • Employment Tax Increment Financing (ETIF) which returns 80% of employer-paid income tax withholdings when 5 or more net new, quality jobs are created;
  • 100% income, franchise, or insurance premium tax (dependent on tax filing method) for years 1-5 and 50% for years 6-10.
  • 100% sales and use tax exemption/reimbursement for construction materials and equipment purchases
  • Access to reduced electricity rates.

Qualified businesses must create at least 1 quality net new job. Quality jobs have an annual income requirement of $34,802 in York County including wages, retirement benefits, health insurance, education and dependent care. The jobs must have health insurance and access to group retirement benefits. Finally, qualified businesses must be from these sectors:

  • Biotechnology
  • Composite Materials Technology
  • Advanced Technologies for Forestry or Agriculture
  • Information Technology
  • Aquaculture and Marine Technology
  • Environmental Technology
  • Manufacturing
  • Financial Services

Contact: Department of Economic and Community Development, 207-624-9804, www.mainebiz.com.

 

Tax Increment Financing (TIF):

Tax Increment Financing provides municipalities with a local tool to finance the cost of private development. A municipality may use all or a portion of the new property taxes that result from an investment project within a designated district to assist in that project's financing. The municipality has the option of issuing bonds (which are retired using the tax increment) or disbursing the tax increment directly to the investing business to cover project costs. TIF districts may be designated for a period of up to 30 years. The terms of financing are established by the municipality. A public hearing and the majority vote of the municipal legislative body are required, with final approval provided by the Department of Economic and Community Development.

Contact: Department of Economic and Community Development, 207-624-9800, www.mainebiz.org/business_assistance/tif.asp.

 

Employment Tax Increment Financing (ETIF):

Employment Tax Increment Financing assists in the financing of business investments that create at least 5 net new, high quality jobs in Maine. An ETIF approved business may be reimbursed 30, 50, or 75 percent (80% for PTZ qualified business) of the state income tax withholdings from the net new payroll for up to 10 years.

The amount of annual payment is based upon the actual number of employees above the company’s base level of employment. The company may not be reimbursed from ETIF for any period of time when employment income and benefits fail to meet the minimum qualification criteria. (Please note that ETIF can not be taken concurrently with the Jobs and Investment Tax Credit).

Eligible businesses include any business that hires a minimum of 5 net new employees within a two year period where those employees are: 1) paid an income that exceeds the per capita income in the county of employment ($34,802 in York County), 2) provides access to group health insurance, and 3) provides access to an ERISA-qualified retirement program.

Contact: Department of Economic and Community Development, 207-624-9800,
www.mainebiz.org/business_assistance/etif.asp

 

Jobs and Investment Tax Credit:

Jobs and Investment Tax credit allows any business, other than a utility, that invests at least $5 million in a taxable year in qualifying types of personal property and creates 100 new jobs in Maine within the ensuing two year period a tax credit equal to 10% of the qualified investment and is limited, in any one year, to the lesser of 500,000 or to the tax otherwise due. Any unused credit amount may be carried forward up to seven years. (Please note can not be used concurrently with ETIF).

Contact: Maine Revenue Services, 207-626-8475,
www.maine.gov/revenue

 

Business Equipment Tax Exemption (BETE) Program:

Business Equipment Tax Exemption Program (BETE) provides a 100% property tax exemption for qualified business personal property first subject to tax in Maine on or after April 1, 2008. There is no limit on the length of the exemption.

Contact: Maine Revenue Services, 207-626-8475,
www.maine.gov/revenue

 

Research Expense Tax Credit:

Research Expense Tax Credit provides a 5 percent income tax credit to companies that incur qualifying research expenses in excess of their average research expenses. The program also provides a 7.5 percent credit under IRC 41(e) (1) (A). The credit is further limited to 100% of the first $25,000 in tax liability plus 75% of the tax liability in excess of $25,000. The credit can not be carried back but can be carried forward for up to 15 years.

Contact: Maine Revenue Services, 207-626-8475,
www.maine.gov/revenue

 

R & D Super Credit

Super Research and Development Credit is for businesses that qualify for the aforementioned Research Expense Credit and whose qualified research expenses in Maine for the taxable year exceed 150% of their average research expenses for the three years prior to the effective date of the credit. The credit is limited to 50% of the tax otherwise due after all other credits. Further, the credit cannot reduce tax liability below the amount due the previous year after credits. The credit cannot be carried back but can be carried forward for up to five years.

Contact: Maine Revenue Services, 207-626-8475,
www.maine.gov/revenue

 

High Technology Investment Tax Credit:

High Technology Investment Tax Credit provides a tax credit based on the adjusted basis of eligible equipment. The credit is limited to high tech equipment purchased (or leased) by businesses engaged primarily in high tech activities. The credit cannot reduce taxes to an amount below the previous year's tax after credits. The credit cannot be carried back but can be carried forward for up to five years.

Contact: Maine Revenue Services, 207-626-8475,
www.maine.gov/revenue

 

Sales Tax Exemptions:

Sales tax exemptions are allowed on the purchase of certain goods or services through the following programs:

Biotechnology Sales Tax Exemption for the purchase of machinery, equipment, instruments, and supplies used by the purchaser directly and primarily in a biotechnology application.

Custom Computer Programming Sales Tax Exemption for the purchase of custom computer programming.

Fuel and Electricity Sales Tax Exemption exempts from sales tax 95% of the sales price of all fuel and electricity purchased for use at a manufacturing facility.

Manufacturing Sales Tax Exemption for the purchase of qualified machinery and equipment used in the production of tangible personal property as well as the repair and replacement of parts. Material used in production is also exempt.

Research Machinery and Equipment Sales Tax Exemption for machinery and equipment used directly and exclusively for research and development.

Contact: Maine Revenue Services, 207-626-8475,
www.maine.gov/revenue