Statewide Pine Tree Development Zone program

1
Statewide Pine Tree Development Zone program

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

2
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

3
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

4
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

5
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

6
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

7
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

8
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 LMAs
  unemployment rate
• Tier 2 municipalities
• Any municipality not defined as Tier 1

9
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

10
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

11
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
• brian.doyle_at_maine.gov [phone]