The Pine Tree Development Zone Program (PTDZ) offers eligible businesses the chance to greatly reduce state taxes for up to ten years when they create new, quality jobs in certain business sectors, or move existing jobs in those sectors to Maine.
Eligible sectors are:
- Aquaculture and Marine Technology
- Composite Materials Technology
- Environmental Technology
- Advanced Technologies for Forestry and Agriculture
- Manufacturing and Precision Manufacturing
- Information Technology
- Financial Services
A new, quality job is defined as one that:
- Provides a total income above the county average. Wages, bonuses, commissions, and employer payments toward benefits such as retirement and health insurance count towards the total income measure. Use the 2023 Income Guidelines (PDF) to determine annual income requirements. (The previous year's income guidelines can be found here: 2022 Income Guidelines (PDF))
- Includes access to a group health care plan.
- Includes access to group retirement benefits, subject to ERISA, such as a 401-K or pension plan.
PTDZ benefits do not apply to jobs moved from one area to another within the state.
All of Maine's counties, except for Cumberland and York, are designated as eligible for PTDZ. Within Cumberland and York counties, certain municipalities are eligible: 2023 PTDZ Tier 1 Eligible Municipalities in Cumberland and York Counties (PDF)
PTDZ companies can receive corporate tax credits, sales and use tax exemptions for both personal and real property, employee income reimbursements of 3.6%, and reduced electricity rates. (Some financial sector companies may also be eligible for certain insurance tax credits.)
The following information is provided by Maine Revenue Services:
A tax credit is available to businesses certified by the Department of Economic and Community Development under the PTDZ program. The income tax credit under this program may not be combined with the income tax credit under the Media Production Credit under section 5219-Y.
- Income Tax Credit Guidance Document (PDF)
- Worksheets for claiming the income tax credit
- Sales Tax Bulletin (PDF)
- Application for Refund of Sales and Use Tax (PDF)
- Application for Sales and Use Tax Exemption Certificate (PDF)
How to apply
- Submit a But For letter prior to any public announcement of your project. The letter is your statement that, without PTDZ benefits, your business would not be creating new jobs in Maine.
- DECD acknowledges receipt of your But For letter and gives the green light to submit a full application.
- Submit a completed application. The date the application is received will become the effective date of certification if approved for the program.
- DECD reviews the application and, if all requirements are met, approves it.
- Once you add the required net new, quality jobs, DECD will provide the PTDZ certificate and you can start accessing the program benefits.
2023 Application Forms
- But For letter sample (PDF)
- But For letter instructions (PDF)
- CY2023 PTDZ Application (Excel)
- CY2023 PTDZ Application instructions (PDF)
Annual Reporting Requirements
Companies participating in the PTDZ program are required to file an annual report by March 15th each year. Participants will be sent an annual reminder and instructions for online filing of their annual report in late January.
DECD reports information on the PTDZ program to the Taxation and IDEAB legislative committees by June 1 of each year. The program is governed by MRS Title 30- A §5250-H to §5250-T, under "Subchapter 4: Pine Tree Development Zones." The program is also governed by Rule 100c100, as amended, which can be viewed here.