SPOTLIGHT PROGRAMS

Employment Tax Increment Financing Program (ETIF): For-profit businesses who are a non-retail, non-public utility, that, within two calendar years of becoming ETIF certified: hire 5 or more net-new qualified employees above the company’s employment baseline, established at time of application; offer new, full-time employees access to a group health care plan and ERISA retirement plan; and exceed the per capita income for the county of certified location, may be eligible to receive a refund ranging between 1.35%-3.6% of qualified employee income up to ten years.

‍

Pine Tree Development Zone Program (PTDZ): Businesses involved in Biotechnology, Aquaculture and Marine Technology, Composite Materials Technology, Environmental Technology, Advanced Technologies for Forestry and Agriculture, Manufacturing and Precision Manufacturing, Information Technology, and Financial Services may qualify for corporate tax credits, sales and use tax exemptions for both personal and real property, employee income reimbursements of 3.6%, and reduced electricity rates. Some financial sector companies may also be eligible for insurance tax credits. To receive PTDZ certification wages must exceed per capita personal income in county employed. The incentives available under this program are available for up to 10 years for certified businesses who continue to meet program requirements.

‍

‍

TAX CREDITS

Major Business Headquarters Expansion Program (MBHQ): Enacted in 2017, this program is intended to encourage the location and expansion of major business headquarters, in the State of Maine, who intend to make a qualified investment at the applicant’s headquarters of at least $35,000,000 and intend to promote the recruitment and training of employees for these facilities. The applicant must employ at least 5,000 full-time employees worldwide, of which at least 25% are or will be based in Maine. For applicants meeting all program criteria, a refundable credit against the tax due for the taxable year in an amount equal to 2% of the certificated applicant’s qualified investment for a period up to 20 years is available. Cumulative credits may not exceed $16 million.

‍

Research Expense Tax Credit: The credit is based on a percentage of the federal Credit for Increasing Research Activities. Limitations: the credit is limited to 5% of the excess qualified research expenses over the previous three-year average plus 7.5% of the basic research payments. 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 cannot be carried back but can be carried forward for up to 15 years.

‍

Major Food Processing Manufacturing Expansion Program: Passed in June, the food processing tax credit allows eligible Maine companies to receive a refundable tax credit equal to 1.8% of their investment for 20 years.  Companies must make a minimum investment of $35 million, have 40 full-time employees within the state, 75% of employees must make above the most recent per capita income for the county employed, and be previously headquartered in Maine for at least five years.

‍

Maine Seed Capital Tax Credit: This tax credit program is designed to encourage investment in Maine businesses directly through private venture capital funds. Tax credits are equal to 40% of the investment. The investment limit for tax credits is $3.5 million. Qualified businesses must be in Maine, be a manufacturer, provide goods or services with 60% of sales from outside of Maine, develop or apply advanced technology, value-added natural resource enterprise, or be certified as a visual media production company. The investor cannot control or own 50% of the company.

‍

‍

TAX EXEMPTIONS/ABATEMENTS

Business Equipment Tax Reimbursement (“BETR”) Program: Eligible companies may redeem property taxes paid on qualified property and equipment that was placed in service between April 1, 1995 and April 1, 2007, or after April 1, 1995 for retail property.  The reimbursement rate starts at 100% for the first twelve years and decreases thereafter.

‍

Business Equipment Tax Exemption (“BETE”) Program: Under the BETE program, eligible companies can benefit from a 100% property tax exemption for qualified property that was first subject to tax in Maine on or after April 1, 2008.

Maine state sales tax exemptions are available for manufacturing, R&D, custom computer programming, fuel & electricity, and biotechnology.

‍

Commercial Agriculture and Aquaculture Production: Sales of feed hormones, pesticides, antibiotics, and medicines used in commercial agricultural or aquacultural production are exempt from sales or use tax. Sales of fertilizer, seed, defoliants, insecticides, weed killers, fuel, electricity, and depreciable machinery and equipment are also exempt from sales or use tax. The sale of breeding stock and other activities existing under animal agricultural production are also exempt from sales tax.

‍

‍

‍

LOCAL INCENTIVES

Municipal Tax Increment Financing: This is a flexible program that allows cities, plantations, or unorganized territories to leverage new property taxes generated by a project to finance public or private projects for a period of up to 30 years. These projects must be located in defined geographic areas designated by the city or plantation. Allowable projects are determined by public approval.

‍

‍

‍

Last updated: April 2023