Employment Tax Increment Financing: Businesses that create at least 5 net-new qualified jobs above the company’s employment baseline, established at time of application, may be eligible to receive a refund ranging from 30% to 75% of state income tax withholdings paid by the business for the newly hired employees. Businesses certified under the Pine Tree Development Zone program may receive a withholding tax reimbursement of 80%. The ETIF reimbursement is available for up to 10 years for certified businesses who continue to meet program requirements.
Pine Tree Development Zones (PTDZ): Businesses involved in Biotechnology, Aquaculture and Marine Technology, Environmental Technology, Advanced Technologies for Forestry and Agriculture, Manufacturing, Precision Manufacturing, Information Technology and Financial Services, who are certified as a Pine Tree Development Zone business, may qualify for corporate income tax credits, sales and use tax exemptions, a withholding tax reimbursement of 80% and reduced electricity rates. To qualify, a company must operate in one of Maine’s targeted industry sectors and create new jobs paying wages that exceed the per capita personal income of the county in which the project is located. The incentives available under this program are available for up to 10 years for certified businesses who continue to meet program requirements.
Major Business Headquarters Expansion Program (MBHQ): 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 within the State of Maine, of at least $35,000,000, and to promote the recruitment and training of employees for these facilities. For applicants meeting all program criteria, a 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.
Research Expense Tax Credit: This incentive is based on a percentage of the federal Credit for Increasing Research Activities. The credit is limited to 5% of the qualified research expenses in excess of the previous three-year average, plus 7.5% of the basic research payments for qualified organizations (e.g. educational, scientific, or grant institutions). For corporate taxpayers, the credit may not exceed 100% of the first $25,000 in tax liability, plus 75% of the tax liability in excess of $25,000. Credits may be carried forward for up to 15 years.
Business Equipment Tax Exemption ("BETE") Program - The program is a 100% property tax exemption program for eligible property that would have been first subject to tax in Maine on or after April 1, 2008.
Sales Tax Exemptions: A business may apply for a sales tax exemption on equipment to be used for biotechnology, custom computer programming, manufacturing and R&D-related activities.
Last updated: June 2018