Employment Tax Increment Financing - Legislation, Rules and Reporting Requirements
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.
ETIF Program Rule
On January 13, 2020 the amended program rule number 2020-009 became effective. The ETIF program rule can be found below.
Annual Reporting Requirements
In consideration of the COVID-19 pandemic, and the unprecedented challenges companies are currently facing as a result, we are immediately extending the report filing deadline, for both the Pine Tree Development Zone (PTDZ) and Employment Tax Increment Financing (ETIF) programs from April 15th to May 1st.
Please contact DECD’s Tax Incentive Programs’ office if you feel you will need additional time beyond May 1st to complete your annual reports.
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.