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Statewide Pine Tree Development Zone program

Statewide Pine Tree Development Zone program. Brian S. Hodges, Director of Tax Incentive Programs Brian Doyle, Business Development Specialist. PTDZ - History. Introduced by Gov Baldacci in 2003 Designed to spur economic development and job creation Targeting areas of:

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Statewide Pine Tree Development Zone program

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  1. Statewide Pine Tree Development Zone program Brian S. Hodges, Director of Tax Incentive Programs Brian Doyle, Business Development Specialist

  2. PTDZ - History • Introduced by Gov Baldacci in 2003 • Designed to spur economic development and job creation • Targeting areas of: • Relatively high unemployment • Relatively low wages

  3. PTDZ – Eligibility • Company certification • Must be a qualified business category • Advanced technologies for forestry & agriculture • Aquaculture & marine technology • Biotechnology • Composite materials technology • Environmental technology • Financial services • Information technology • Manufacturing, including precision manufacturing technology

  4. PTDZ - Eligibility • Company certification (cont.) • ‘but for’ letter submitted • Application submitted • Determination issued by DECD • One net new “quality” job created within 2 years • Meeting county per capita income • Access to group health insurance • Access to an ERISA qualified retirement plan

  5. PTDZ - Benefits • 10 year duration • Income tax credit/Insurance Premiums • 100% years 1-5, 50% years 6-10 • Employment Tax Increment Financing (5 net new) • 80% employee withholdings returned(PTDZ) • 30,50,75% of withholdings returned (non PTDZ) • Sales tax exemption/reimbursement • Reduced utility rates

  6. PTDZ – Statewide changes • LD 1473 • Signed by Gov. Baldacci June 22, 2009 • Effective September 12, 2009 • Retroactive to January 1, 2009 • 2 Tier system • Tier 1 offers 10 years of PTDZ benefits • Tier 2 offers 5 years of PTDZ benefits

  7. PTDZ – Statewide changes • Calendar year 2009 only • Entire state is classified as Tier 1 • January 1, 2010 • 2 Tier system begins • Compare municipal unemployment rates to labor market area (LMA) unemployment rate • Determination done once/year, using prior calendar year data

  8. PTDZ – Statewide changes • Tier 1 municipalities • Municipalities not located in Cumberland or York counties • Municipalities in Cumberland or York county already participating in the PTDZ program • Municipalities in Cumberland or York county with an unemployment rate 15% higher than their LMA’s unemployment rate • Tier 2 municipalities • Any municipality not defined as Tier 1

  9. PTDZ – Statewide changes • Tier 1 Municipality • Provides access to 10 years of PTDZ benefits • Application deadline is 12/01/2018 • Tier 2 Municipality • Provides access to 5 years of PTDZ benefits • Provides access to 5 years of ETIF benefits • Application deadline is 12/01/2013 • All PTDZ benefits expire 12/31/2028

  10. PTDZ – Statewide changes • Zone administration • Effective 09/12/2009, parcel concept is eliminated • Special thanks to Southern Maine Regional Planning Commission and those municipalities that participated over the first 5 years

  11. PTDZ – Your role • Is the company seeking incentives? • Is the company looking to start/expand? • Add employees • Investments in equipment, buildings, etc • Contact DECD Brian Doyle Business Development Specialist brian.doyle@maine.gov (207) 822-0186

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