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Governor Critical of Speaker’s Comments Opposing Maine Business Tax Credit

February 10, 2016

For Immediate Release: Wednesday, February 10, 2016 Contact: Adrienne Bennett, Press Secretary, (207) 287-2531

Governor Critical of Speaker’s Comments Opposing Maine Business Tax Credit

AUGUSTA – Governor Paul R. LePage today released the following statement after Speaker of the House Mark Eves’ opposed proposed legislation, specifically targeting the Maine Capital Investment Credit, to conform Maine’s tax code to the federal Internal Revenue Code.

“Speaker Eves has demonstrated once again he has absolutely no understanding of how business and simple economics work,” said Governor LePage. “Eves’ position is like flying on an airliner that gets you only 95 percent of the way home.”

“Eves is demonizing the private sector entrepreneurs who invest in our communities, create good-paying jobs, sign the paychecks of hardworking Mainers and generate the tax revenues we all benefit from. It’s a slap in the face to struggling mom-and-pop small businesses, as well as the companies that provide substantial investment and significant economic benefit to our state.”

In January, the LePage Administration compiled supportive statements made by Maine’s business trade associations at the Joint Standing Committee on Taxation’s public hearing on January 25, 2016. Cumulatively, these organizations represent thousands of Maine businesses.

Hope Perkins, Associated Builders and Contractors, Inc. – Richmond

“By lowering the cost of capital for equipment and technology intensive businesses, this legislation could serve as a catalyst for new and expanding investment in Maine. As Maine continues to recover from recent economic downturns, we believe it’s imperative the state engage public policy measures that make it easier to attract investment opportunity.”

Brian Parke, Maine Motor Transport Association – Augusta

“The biggest reason for our support is the provision in the tax extenders legislation that includes bonus depreciation to the year 2019. This provides a measure of certainty for our member carriers who can now confidently make capital asset purchases without wondering how depreciation rules might change from year-to-year.”

Linda Caprara, Maine State Chamber – Augusta

“Growing Maine's economy should be our number one priority. Encouraging businesses to invest on a continual basis in an effort to grow and expand and to create jobs is something I'm sure we can all agree is important. Extending and making permanent these tax provisions allows businesses to plan for the future and do just that.”

David Clough, NFIB – Portland

“There are two kinds of investments business owners make: One is to keep people in jobs by modernizing equipment. The other is to create jobs by buying equipment that is necessary to expand. Both are extremely important to the health of State of Maine’s economy.”

Ben Sanborn, Telecommunications Association of Maine – Augusta

“This benefit only accrues after investments have actually been made in the State. This is not an issue of giving support and hoping that it is used to benefit Maine, this is an issue of rewarding actual investment in the State and freeing up resources that can then be reinvested in the State.”

Peter Chandler, Maine Society of CPA’s – Portland

“Our clients are vitally interested in knowing whether they are going to receive favorable depreciation treatment and they make their decisions accordingly.”

Don Flannery, Maine Potato Board – Presque Isle

“Agriculture, no matter what it is in the State of Maine, is a small business. What we need to do - primarily to help those businesses – is support them. Passing this bill is a great step toward that. Growers that are investing – whether it be a potato farm, dairy farm, raising whatever it may be in the state – if they are going to make capital investments, they need to know what they can do and how that - going forward - will work.”

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