Statewide Pine Tree Development Zone program

Brian S. Hodges, Director of Tax Incentive Programs Brian Doyle, Business Development Specialist

PTDZ - History

• Introduced by Gov Baldacci in 2003 • Designed to spur economic development and job creation • Targeting areas of: – Relatively high unemployment – Relatively low wages 2

PTDZ – Eligibility

• Company certification – Must be a qualified business category • Advanced technologies for forestry & agriculture • Aquaculture & marine technology • Biotechnology • Composite materials technology • Environmental technology • Financial services • Information technology • Manufacturing, including precision manufacturing technology 3

PTDZ - Eligibility

• Company certification (cont.) – ‘but for’ letter submitted – Application submitted – Determination issued by DECD – One net new “quality” job created within 2 years • Meeting county per capita income • Access to group health insurance • Access to an ERISA qualified retirement plan 4

PTDZ - Benefits

• 10 year duration • Income tax credit/Insurance Premiums – 100% years 1-5, 50% years 6-10 • Employment Tax Increment Financing ( 5 net new) • 80% employee withholdings returned (PTDZ) – 30,50,75% of withholdings returned (non PTDZ) • Sales tax exemption/reimbursement • Reduced utility rates 5

PTDZ – Statewide changes

• LD 1473 – Signed by Gov. Baldacci June 22, 2009 – Effective September 12, 2009 – Retroactive to January 1, 2009 • 2 Tier system – Tier 1 offers 10 years of PTDZ benefits – Tier 2 offers 5 years of PTDZ benefits 6

PTDZ – Statewide changes

• Calendar year 2009 only – Entire state is classified as Tier 1 • January 1, 2010 – 2 Tier system begins – Compare municipal unemployment rates to labor market area (LMA) unemployment rate – Determination done once/year, using prior calendar year data 7

PTDZ – Statewide changes

• Tier 1 municipalities – Municipalities not located in Cumberland or York counties – Municipalities in Cumberland or York county already participating in the PTDZ program – Municipalities in Cumberland or York county with an unemployment rate 15% higher than their LMA’s unemployment rate • Tier 2 municipalities – Any municipality not defined as Tier 1 8

PTDZ – Statewide changes

• Tier 1 Municipality – Provides access to 10 years of PTDZ benefits – Application deadline is 12/01/2018 • Tier 2 Municipality – Provides access to 5 years of PTDZ benefits – Provides access to 5 years of ETIF benefits – Application deadline is 12/01/2013 • All PTDZ benefits expire 12/31/2028 9

PTDZ – Statewide changes

• Zone administration – Effective 09/12/2009, parcel concept is eliminated – Special thanks to Southern Maine Regional Planning Commission and those municipalities that participated over the first 5 years 10

PTDZ – Your role

• Is the company seeking incentives?

• Is the company looking to start/expand?

– Add employees – Investments in equipment, buildings, etc • Contact DECD

Brian Doyle

Business Development Specialist [email protected]

(207) 822-0186

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