The Pine Tree Development Zone Program (PTDZ) offers eligible businesses the chance to greatly reduce, or virtually eliminate, 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:
- Meets the income requirements for the current year. Income includes "income derived from employment" (IDE) or employee earnings, and employer payments toward employee benefits including retirement, health insurance, education, and dependent care. That total for any new, quality job, must exceed the per capita personal income for that county. Use the 2020 Income Guidelines (PDF) to determine annual income requirements.
- 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.
As of January 1, 2014, the PTDZ program's Tier 2 designation is no longer available in Cumberland and York County municipalities for businesses applying for new PTDZ certifications due to the sunset provision in 30-A MRSA §5250-J (5). However, some communities in Cumberland and York County are eligible under the PTDZ program's Tier 1 designation.
Depending on your business sector and location, your business may be eligible for corporate tax credits, sales and use tax exemptions for both personal and real property, withholding tax reimbursements of 80%, 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)
For more information on the PTDZ program, from Maine Revenue Services, please visit http://www.maine.gov/revenue/taxrelief/ptdz.htm