Tax Incentives and Credits
“When we acquired a closed sawmill in 2011, we met with DECD to explore ways to get it up and running as quickly as possible. The folks at DECD told us they would do everything possible to help us create jobs in Hancock, Maine. They helped us resolve a number of issues ranging from Pine Tree Development Zone certification to pay lower taxes to broadband access to a Community Development Block Grant. They were more than good to their word, and we created 27 jobs.”- Moe Bisson, part-owner,
Pleasant River Lumber Company
As part of our efforts to encourage new, expanding, or relocating businesses of all kinds and sizes, Maine offers a wide variety of assistance financial, practical, and technical. From research tax credits to property and withholding tax relief, such programs help companies with five employees—and five hundred, from Monson to Machias. We also help communities all over the state through block grant programs and innovative property tax programs that help create new jobs and build better housing and infrastructure.
Opportunities For Communities
All units of general local government in Maine, including plantations, except for the entitlement communities of Auburn, Bangor, Biddeford, Lewiston, Portland and all of Cumberland County with the exception of Brunswick, Casco and Frye Island are eligible to apply for and receive Community Development Block Grant Program (CDBG) funds. All CDBG funded activities must meet one of three National Objectives of the program.
These objectives are: Benefit to low and moderate income persons (Economic Development and Workforce Development); prevention and elimination of slum and blight conditions; and meeting community development needs having a particular urgency. For more information regarding CDBG, please visit http://www.maine.gov/decd/meocd/about/index.shtml
Opportunities For Businesses
Maine currently has a number of ways for businesses to recoup tax money when they invest in material, capital, and human resources to create new business and jobs in our state.
Through Employment Tax Increment Financing, your new or growing Maine business can save up to 80% of withholding taxes for new employees for as long as 10 years depending on your location and industry.
Businesses involved in 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 may apply for Pine Tree Development Zone status.
The Major Business Headquarters Expansion Program, enacted in 2017, is intended to encourage the location and expansion of major business headquarters, in the State of Maine, and to promote the recruitment and training of employees for these facilities. The location and expansion of major business headquarters, in Maine, will create high-quality jobs, benefit small businesses that supply goods and services to the major business headquarters and its employees, increase the tax base, and provide many other direct and indirect economic benefits to the State. For applicants meeting all program criteria, a credit against the tax due for the taxable year in an amount equal to 2% of the certified applicant's qualified investment for a period up to 20 years is available.
Your business may qualify for 100% tax exemption from personal property taxes on eligible business equipment through Business Equipment Tax Relief programs.
Technology Tax Credits allow companies involved in manufacturing and certain research-driven activities to take advantage of significant credits and tax exemptions for everything from electricity cost to specialized equipment purchases and other expenses involved in R & D.
Maine Technology Institute (MTI)
MTI is a non-profit organization providing funding for private companies and research laboratories to support and promote research and development, and assist innovative Maine companies and inventors in getting their products to market.
Finance Authority of Maine (FAME)
FAME is an independent state agency that offers more than 20 financing programs, including the Maine Seed Capital Tax Credit Program, providing income tax credits to qualified investors in Maine business.
Small Enterprise Growth Fund
The Small Enterprise Growth Fund provides initial investments, typically between $150,000 and $350,000, in patient capital to small businesses that demonstrate a potential for high growth and public benefit. Funds must be matched in cash. Investments from the fund may be structured as convertible debentures or direct purchases of preferred stock.