Business leaders tout new program as “a pivotal mechanism for economic development” and “key to future growth”
Lisbon, MAINE – Governor Janet Mills and Maine business leaders today touted the state’s new economic development program, the Dirigo Business Incentive Program, during a visit to Springworks Farm in Lisbon.
The program, first unveiled by Governor Mills in April, replaces the 20-year-old Pine Tree Development Zone (PTDZ) program with a new program designed to better serve the needs of Maine’s economy. After earning bipartisan support from the Legislature, the program was included in the historic budget signed into law by Governor Mills earlier this month.
During her visit to Springworks, the largest aquaponics greenhouse in New England, Governor Mills said the Dirigo Business Incentive program will train more people to enter Maine’s workforce, create jobs, attract new businesses to the state, and help existing Maine businesses expand.
“The Dirigo Business Incentive Program is designed to meet the needs of our economy. It will spur private sector investments that put more Maine people in the workforce, create new jobs, and help business start, relocate, or expand right here in Maine,” said Governor Janet Mills. “This program will keep Maine competitive with other states that are working aggressively to attract businesses. I thank the Legislature and the business community for their work to bring this program across the finish line.”
“Having a business incentive program is a key reason for many Maine businesses when they consider making significant, job-creating investments,” said Heather Johnson, Commissioner of the Maine Department of Economic & Community Development. “The Dirigo Business Incentive’s focus on capital investment and worker training will keep our state competitive for years to come.”
“We are excited to celebrate this milestone at our farm,” said Trevor Kenkel, Founder and CEO of Springworks Farm. “Maine’s innovation economy is the reason we have been able to create 40 full-time positions, while producing over 2 million heads of local organic lettuce and 75 tons of fish a year. The program’s emphasis on capital investment and workforce development supports entrepreneurial teams as they attain the resources needed to grow.”
Business and economic leaders from across the state joined Governor Mills in lauding the program:
“The Maine State Chamber of Commerce sees the Dirigo Business Incentives Program as key to future economic growth," said Linda Caprara, Interim President and CEO of the Maine State Chamber of Commerce. "The Governor’s Program will focus on capital investment and workforce training, two key issues for Maine businesses that will attract critical investment to the state in key sectors of our economy.”
“I have worked in economic development across the U.S. for more than 25 years, and I have seen many approaches to incentive programs. The most efficient, successful economic development programs are those that are clear and simplified to support workforce training and that are tied to a state's strategic plan," said Jay Brenchick, Director of Economic Development at the City of Auburn. “That is exactly what the Dirigo Business Incentive is. It's tied to targeted industries, it's tied to the state's strategic plan, and it's tied to capital investment. This program is a common-sense approach, and it is simple for businesses to understand and use.”
“Although we have had significant impact and successes helping businesses start or grow, we feel there is still tremendous opportunity in Somerset County and more we all could provide to assist our businesses in rural Maine,” said Christian Savage, Executive Director of Somerset County Economic Development. “The Dirigo Business Incentives program will be more accessible to small and medium-sized businesses that are an important part of growth in Maine’s more rural areas, while still providing value for the larger businesses that anchor our county’s economy.”
“The Dirigo Business Incentives program represents a pivotal mechanism for economic development, imbuing the state with the capacity to retain, expand, and attract businesses, ensuring Maine's competitiveness in the regional, national, and global arenas,” said Garvan Donegan, Director of Planning, Innovation, & Economic Development at Central Maine Growth Council. “Its benefits extend beyond business growth, overlaying locally to support human capital and workforces, drive innovation, and stimulate new construction to equipment purchases. It is truly the most important tool in our economic development toolbox, enabling Maine to thrive in an ever-evolving economy.”
“FocusMaine supports the State of Maine's efforts to accelerate the growth of Maine's food and biotech industries and create quality jobs to build a thriving, future-ready economy,” said Andrea Cianchette Maker, Co-Chair of FocusMaine. “The Dirigo Incentives program helps realize this goal by attracting and supporting businesses in key sectors of the economy and connecting talent to sustainable career opportunities.”
“The Dirigo Business Incentives Program is exciting and recognizes the economic realities of the current day,” said Peter DelGreco, President & CEO of Maine & Co. “Efforts to stimulate capital investment and workforce training align with the Governor’s 10-year economic development strategy and are the right way to build and grow an economy. We think companies will find this program easy to use, transparent, and effective.”
The Pine Tree Development Zone Program, which the Dirigo Business Incentive will replace, was created during a time of high unemployment, with the primary focus being to create jobs to lower unemployment. Today, however, there are two available jobs for every person seeking a job in Maine. One of the greatest difficulties facing employers, and Maine’s economy more broadly, is no longer job creation – but, rather, the inability to fill those jobs with appropriately skilled people and to create a pathway towards higher-wage jobs in higher-value industries. Additionally, Maine’s economy needs continued additional private sector capital investment. These significant investments in physical infrastructure, like buildings or equipment, help businesses expand and create and sustain good-paying jobs.
The Dirigo Business Incentive Program tackles these challenges through a two-pronged approach that: 1) encourages businesses to train more people to succeed in the workforce by investing in qualified worker training programs; and 2) attracts and expands businesses in promising, high-value sectors through tax credits for capital investments.
Under the new program, which takes effect in 2025, businesses that pay to train three or more workers in an approved employee training program – such as an internship or community college training – could receive a $2,000 tax credit per worker trained. Furthermore, businesses across most of Maine could receive up to a 10 percent credit for a capital investment, or a 5 percent credit for York, Cumberland, and Sagadahoc counties. These credits are specifically targeted towards high-value sectors and industries – including manufacturing, agriculture, fishing, logging/forestry, freight, software, and certain professional services like scientific research – to attract and expand high growth sectors for Maine.
Modernizing Maine’s economic development benefits to tie them directly to capital investment and workforce training, rather than new job creation, allows Maine businesses to invest with confidence, keep Maine competitive with other states, improve the state’s workforce, and strengthen the economy.