Is Your Certified Pine Tree Development Zone (PTZ) Business Receiving All the Program Benefits It Is Entitled To?

June 11, 2008

Maine's Pine Tree Development Zone program offers a variety of tax credits and reimbursements to qualified businesses locating in designated areas throughout the state.
 
However, PTZ benefits are not automatically received by your business, even after it has been certified. Many of the benefits require ongoing action by the certified business to ensure it is receiving the fullest extent of available the tax credits and reimbursements.
 
As a reminder, your PTZ certified business is entitled to the following benefits: 

• Corporate Income Tax Credit: The benefit is calculated from net new PTZ payroll and property
as a percentage of all Maine payroll and property at 100 percent for years one through five and 50
percent for  years six through ten. 

• Employment Tax Increment Financing (ETIF): Returns 80 percent of state income taxes from
five or more qualified new employees for up to ten years. 

• Sales and Use Tax: tax exemption on tangible personal property or a tax reimbursement on real
property purchased and/or physically incorporated for qualified business activity at 100 percent for ten
years. 

• Reduced Utility Rates: Access to reduced electricity rates as requested by Central Maine Power, Bangor Hydro and Maine Public Service and approve by the Maine Public Utilities Commission. 

• Insurance premiums Tax Credits: This benefit only applies to certified businesses engaged in financial services. This is not a tax credit on insurance premiums paid by certified PTZ businesses. The benefit is calculated from net new PTZ payroll and property as a percentage of all Maine payroll and property at 100 percent for years one through five and 50 percent for years six through ten. 

This email alert was prepared by Eaton Peabody Consulting Group.
 
Please contact Daniel B. Stevenson at 207-622-9820 if you have any questions regarding the content of this alert.
 
 
 This alert is provided as general information, and is not a substitute for legal or other professional advice.