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Pine Tree Zone
The Pine Tree Development Zone (PTDZ) program offers eligible businesses the chance to greatly reduce or virtually eliminate state taxes for up to ten years.
We work with expanding businesses, start-up businesses and businesses relocating to Aroostook who employ anywhere from one to hundreds of people.
Eligible Sectors
• Manufacturing, including precision manufacturing technology
• Financial services
• Biotechnology
• Aquaculture and marine technology
• Composite materials technology
• Environmental technology
• Advanced technologies for forestry and agriculture
• Information technology
Benefits
Depending on the level of new qualified business activity conducted in a PTDZ, starting with the statutory requirement for hiring a minimum of one net new qualified employee, the tax burden of qualified businesses may be reduced through the following exemptions, reimbursements, and credits:
• Corporate Income Tax Credit (100%, Years 1-5; 50%, Years 6-10): the tax credit benefit derives from net new PTDZ payroll and property as a percentage of all Maine payroll and property;
• Insurance Premiums Tax Credit (100%, Years 1-5; 50%, Years 6-10): the tax credit benefit derives from net new PTDZ payroll and property as a percentage of all Maine payroll and property; (only applies to Financial Services sector)
• Income Tax Reimbursement (80%, Years 1-10): the tax reimbursement benefit derives from income taxes withheld for net new jobs created, i.e. those qualified employees hired above the “old” employment baseline that existed in Maine prior to the expansion may be eligible for Employment Tax Increment Financing;
• Sales and Use Tax (100% Personal Property Exemption, Years 1-10): the tax exemption benefit, effective the later of July 1, 2005 or date of certification, derives from the qualified business paying no tax on all new tangible personal property purchases for its qualified business activity;
• Sales and Use Tax (100% Real Property Reimbursement, Years 1-10): the tax reimbursement benefit, effective the later of July 1, 2005 or date of certification, derives from paying no tax on all new tangible property purchases that are to be physically incorporated in, and become a permanent part of, real property of a qualified business and used in its qualified business activity;
• Access to reduced electricity rates as requested by Maine Public Service and approved by the Public Utilities Commission
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