Legislation, Rules and Reporting Requirements
The PTDZ program is an incentive program designed to spur economic growth and job creation by making income and sales tax benefits available to eligible new and expanding businesses. Industries eligible to participate in the program include biotechnology, aquaculture and marine technology, composite materials technology, environmental technology, advanced technologies for forestry and agriculture, manufacturing and precision manufacturing, information technology and financial services.
PTDZ Program Rule
On July 4, 2018, Maine passed Public Law Chapter 440, An Act To Protect Economic Competitiveness in Maine by Extending the End Date for Pine Tree Development Zone Benefits and Making Other Changes to the Program, which will extend the state's Pine Tree Development Zone (PTDZ) program for three years. The original program, which began in 2003, was set to cease accepting new applicants on December 31, 2018. The new law extends the date for new applicants by three years to December 31, 2021, with the benefits sun setting on December 31, 2031. The changes made to the PTDZ program, with the enactment of P.L. Chapter 440, are effective January 1, 2019.
On February 27, 2019 the Notice of State Rulemaking for proposed rule number 2019-PO26 was published. The comment deadline is March 29, 2019. Copies of the weekly notices and the full texts of adopted rule chapters may be found on the internet at: http://www.maine.gov/sos/cec/rules. A PDF of the Notice of Rulemaking and the draft rules are also available by clicking on the item below:
Annual Reporting Requirements
The Legislature charges DECD with collecting information necessary for the State to administer the Pine Tree Development Zone (PTDZ) Program. To ensure full program compliance, reporting is mandatory.
P.L. Chapter 440 also makes program changes with respect to accountability and performance standards for PTDZ certified businesses and DECD. All PTDZ certified businesses will continue to be required to file annual reports. Companies that are PTDZ 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.
Starting April 15, 2019, and due on that same date each year, PTDZ businesses will be required to file a PTDZ annual report, for the immediately preceding calendar year, that contain the following information:
- The total number of Maine employees and total salary and wages for those employees for the report year;
- The total number of qualified Pine Tree Development Zone employees and total salary and wages for those employees for the report year;
- The number of qualified Pine Tree Development Zone employees hired within the report year;
- The amount of investments made during the report year at the qualified Pine Tree Development Zone business location or directly related to the qualified business activity; and
- In aggregate, the estimated or total value of Pine Tree Development Zone benefits received or claimed in the report year.
On or before June 1st of each year, the DECD Commissioner shall report to its legislative oversight committee information on the PTDZ program including, but not limited to, the following:
- The names of qualified Pine Tree Development Zone businesses for the report year;
- The estimated or total aggregate amount of Pine Tree Development Zone benefits received by qualified Pine Tree Development Zone businesses in the report year; and
- Aggregate information for each of the most recent 3 report years on:
- Employment levels for all Maine employees and for qualified Pine Tree Development Zone employees and associated salary and wages for both groups of employees
- Average annual salary and wages and access to health insurance and retirement benefits for all Maine employees and for qualified Pine Tree Development Zone employees; and
- Amount of investment associated with the qualified Pine Tree Development Zone business locations or directly related to the qualified business activities.
The new law also requires the Office of Program Evaluation and Government Accountability (OPEGA) to review and provide a report of its assessment and evaluation of the PTDZ program by January 15, 2021.
Please contact a Governor's Account Executive for more information.