Legislation, Rules and Reporting Requirements

Employment Tax Increment Financing - Legislation, Rules and Reporting Requirements

Legislative Intent

Employment Tax Increment Financing (ETIF) is a state program that helps new and established Maine businesses hire new employees by refunding from 30-80% of the state withholding taxes paid by the business for up to ten years. The reimbursement rate rises with the level of local unemployment, with companies who are Pine Tree Development Zone certified receiving the highest reimbursement rate (80%).

If your business plans to hire 5 or more new, full-time employees over a two-year period, you may be eligible for ETIF. Retail-only and not-for-profit businesses are not eligible for ETIF.

Program Statute

ETIF Statute

ETIF Program Rule

On October 23, 2019 the Notice of State Rulemaking for proposed rule number 2019-P238 was published. The comment deadline is November 29, 2019. A PDF of the proposed rule can be found by clicking the link below.

 Employment Tax Increment Financing Draft Rule 102019

Annual Reporting Requirements

The Legislature charges DECD with collecting information necessary for the State to administer the Employment Tax Increment Financing (ETIF). To ensure full program compliance, reporting is mandatory. Annual reports must be submitted by April 15th of each year.  Companies that are ETIF certified, prior to December 31st each year, will be sent an annual reminder and instructions for online filing of their annual report in late February/early March.