ECONOMIC ADVANTAGE
Below is a partial list of state and local incentive programs that may be available to new and expanding companies in northern Maine.
Empowerment Zone Wage Credit : Manufacturers who locate a facility within Maine 's federally-designated Empowerment Zone receive a $3,000 federal tax credit per qualified employee, per year. Qualified employees are those individuals who live in the Empowerment Zone. Maine 's Empowerment Zone is located within Aroostook County.
 Pine Tree Development Zones. Qualifying business may receive: Tax credits equal to 100% of State income tax for 5 years, followed by 50% State income tax credits for another 5 years; Financing assistance equal to 100% of the tax paid on real property improvements; Exemptions from personal property tax; and Employment tax increment financing equal to 100% of the qualified employees' state income tax withholdings for 10 years.
Tax Increment Financing (TIF): Negotiated between a municipality and employer, a TIF returns to the company, a percentage of the tax revenue created by its investments in real and personal property. The maximum term of a TIF agreement is 30 years.
Business Equipment Tax Reimbursement Program (BETR): The state reimburses to the company 100% of property taxes paid on production machinery & equipment. BETR is a 12-year program, however, reimbursements schedules are tied to the equipment, not the project. Therefore, as equipment is replaced, new reimbursements schedules begin. In effect, BETR virtually eliminates a manufacturer's personal property taxes in Maine.
Employment Tax Increment Financing (ETIF ): The state reimburses to the company-for 10 years-a percentage of the personal income tax withholdings of its qualified employees. Qualified employees are those paid above the per capita income level of the county in which the jobs are created.
Jobs & Investment Tax Credit (JITC): For companies that invest at least $5M in qualified personal property and create at least 100 new jobs, the state provides a credit against Maine income taxes equal to 10% of the company's investment. The amount of the credit cannot exceed $500,000 in one year; however, the credit can be carried forward for 6 years. JITC cannot be used concurrently with the ETIF program.
Sales Tax Exemptions for Manufacturers: The state offers manufacturers an exemption from the state's sales & use tax (5%) on purchases of machinery, equipment, fuel, and electricity used in the manufacturing process.
Workforce Training : Through the Maine Quality Centers and Governor's Training Initiative , the state provides no-cost, customized recruiting and training assistance on a pre or post-employment basis. The company realizes the benefit of these programs through the value of services rendered and/or direct reimbursements for training expenditures.
Financing: The Finance Authority of Maine offers manufacturers (ii) loan guarantees and (ii) long-term financing of up to $25M at below-market rates.
Research and Development Tax Credits: Special tax credits are offered to those investing in research and development.
Discounted Utility Costs: Economic development rates are offered to commercial and industrial customers. Deeper discounts may be negotiated by certain customers, based on job creation and investment.
Real Estate : Publicly-controlled land and buildings may be available at below-market rate-or at no cost-for projects involving large capital investments and significant job creation. Many municipalities and economic development groups will acquire privately held property to be leased to expanding business, at below-market rates.
Infrastructure Improvements : Infrastructure improvements may be provided at no cost to the company for projects involving large capital investments and significant job creation.
Permitting : The state provides 'Fast Track' Site Approval of Development permitting for large-scale projects.
Other: Additional financing resources may be available through regional and local economic development corporations. |
