The Pine Tree Development Zones Program was established by the Legislature in PL 2003 Chapter 688, Part D, and amended by PL 2005 Chapters 351 and 451. The Department of Economic and Community Development administers the program that created eight Pine Tree Development Zones, each containing no more than 5,000 acres. These rules defines what a business must do to qualify for the benefits provided by a zone. The Pine Tree Development Zones program, established under 30-A M.R.S.A. Chapter 206, Sub-chapter 4, is designed to encourage business investment in specifically designated areas of the state in order to:
- Provide new employment opportunities;
- Improve existing employment opportunities;
- Improve and broaden the tax base; and
- Improve the general economy of the state.
The Maine Pine Tree Development Zone Program offers manufacturers, financial service businesses and targeted technology companies the chance to greatly reduce or, in some cases, virtually eliminate state taxes for a period of time that may be up to ten years. Depending on the level of certified economic activity conducted in the Pine Tree Development Zones, the tax burden of qualified businesses may be reduced through the following
exemptions, reimbursements, and credits:
- Income/Franchise Tax Credit (100%, Years 1-5; 50%, Years 6-10)
- Insurance Premiums Tax Credit (100%, Years 1-5; 50%, Years 6-10)
- Employment Tax Increment Financing (ETIF) Income Tax Reimbursement (80%, Years 1-10)
- Sales and Use Tax Exemption (100%, Years 1-10)
- Sales and Use Tax Reimbursement (100%, Years 1-10)
As mentioned, the Pine Tree Development Zone Program is intended to encourage and reward the creation of qualified business activity, with its accompanying employment and investment in property, in specifically designated areas of Maine. The tax benefits are tied to the qualified business activity of a qualified Pine Tree Development Zone business. They are intended to reward investments in property and payroll that would not have occurred but for the program. When an existing Maine business moves part or all of its operations to a Pine Tree Development Zone location, or expands its operations within a Pine Tree Development Zone location, only net new business activity may be used to determine PTDZ tax benefits.
The rules governing the Pine Tree Development Zones program, adopted pursuant to the Department’s rulemaking authority under 30-A M.R.S.A. § 5250-J and § 5250-M, establish the minimum requirements for the designation of zones, the determination and certification of eligibility, the selection of zones for designation, and the periodic evaluation of zone performance. The rules prescribe application requirements, procedures for designation and amendment of zones, reporting requirements and the general administration of the program. Additionally, the rules establish the requirements and procedures for the certification of Qualified Pine Tree Development Zone Businesses.
For more information please see the state of Maine website : www.maine.gov
Page last updated on Wednesday, January 30th, 2008 @ 04:08 am
