Financial and Tax Incentives
Pine Tree Development Zones (PTDZ) Offers eligible businesses in Maine the chance to greatly reduce, or in some cases, virtually eliminate state taxes for up to ten years. Employment Tax Increment Financing Assists in the financing of business investment projects that create at least 5 net new, high quality jobs in Maine. Technology Tax Credits Several tax credit programs are specifically designed to encourage the growth of technology companies in the state Business Equipment Tax Exemption (BETE) Provides a 100% property tax exemption for “eligible property” first subject to tax in Maine on or after April 1, 2008 with no limit on the term of the exemption. Credit for Educational Opportunity Available to employers of college graduates who earn an associate or bachelor’s degree from an accredited Maine or non-Maine college or university and subsequently live and work in Maine. Maine Seed Capital Tax Credit Equal to a percentage of a person’s qualified investment in a new or recent business venture. New Markets Capital Investment Credit A person making a qualified equity investment in a low-income community business is allowed a credit equal to 39% of the investment. Sales Exemptions Exemptions are offered in biotechnology, custom computer programming, fuel and electricity, manufacturing, and research and development. Finance Authority of Maine A quasi-governmental agency with several financing options available to companies. Maine Venture Fund A professionally managed venture capital fund that invests exclusively in Maine companies that demonstrate a potential for high growth and public benefit and employ 50 or fewer or have gross sales of $5 million or less within the past 12 months. Community Development Block Grant Program Provides communities with gap funding to assist identified businesses in the creation/retention of jobs for low-and moderate-income persons. Local & Regional Revolving Loan Program There are numerous local and regional economic development organizations throughout the state that administer their own revolving loan programs. Maine Rural Development Authority (MRDA) Provides financial assistance to communities and their development partners to help develop speculative commercial and industrial buildings and to help develop/redevelop underutilized commercial industrial properties. Commercial Facilities Development Program Provides financial resources to assist in the development of new commercial facilities, the acquisition/ redevelopment of nonproductive commercial facilities for return to productive use, and in the purchase of machinery or equipment.
Research and Development Grants and Loans from Maine Technology Institute
Tech-Start Grants Up to $5,000 tech transfer exploration which will be awarded on a monthly basis – for concept planning, market research and tech transfer exploration. Seed Grants Up to $25,000 will now be available every four months for early-stage R&D activity. Development Awards Up to $500,000 are offered up to three times a year as a conditional loan for later stage R&D and development of new and/or enhanced products, processes or services leading to commercialization. Business Accelerator Grant For activities that will increase a company’s chance of success: business planning, strengthening financial management capacity, developing strategies to secure key customers, strategic partners and investors, etc. Equity Capital Investments up to $200,000 available to selected MTI companies who need to achieve specific milestones to secure follow-on private investment. Cluster Initiative Program Awards up to $50,000 for feasibility and planning and up to $500,000 for collaborative initiatives that boost the strength and scale of Maine’s high-potential technology intensive clusters.
Workforce Training Assistance
Maine Quality Centers Program Funds customized workforce training delivered through Maine’s 7 community colleges. Grants are available to fund pre-hire, post-hire and incumbent training. Maine Apprenticeship Program Provides customized training and professional credentials to new, present, as well as future workers. Safety and Education Training Program Provides customized health and safety training, site evaluation and technical support to reduce injuries, illness and worker’s compensation costs. Maine Manufacturing Extension Partnership Creates opportunities for small and medium sized manufacturers by helping them become more efficient, productive and globally competitive. Manufacturers Association of Maine (MaMe) Members benefits include networking opportunties, B2B and contract services, educational and professional workshops, business growth services, etc. Community Development Block Grant Workforce Development Program Provides funding for operating expenses, equipment, and program materials for workforce training that will benefit low/moderate income (LMI) persons.
Technical and Operational Support
Office of Innovation and Assistance An advocate for businesses, and available to travel statewide to offer comprehensive assistance services. Small Business Technical Assistance Program Focuses on free education and outreach to businesses with less than 100 employees, regarding regulatory issues that impact them. Coordinated Environmental Permitting Program A facilitator for projects needing a single environmental approval, and a manager for projects requiring multiple approvals. Efficiency Maine Offers information and cash incentives to all Maine businesses that install qualified energy efficient electric products. Maine Procurement Technical Assistance Center Assists companies interested in selling their products and/or services to local, state or federal government agencies, either as prime contractors or subcontractors. Maine International Trade Center Offers comprehensive export, logistical, technical and market research assistance to companies doing business in Maine that are seeking to expand their international business prospects.
Pine Tree Development Zone (PTDZ) Program Spotlight
- PTDZ benefits can be “layered” over other available benefits
- Elimination of Sales & Use Tax for 10 years
- 100% Corporate Income Tax credit for 5 years and 50% Corporate Income Tax credit for years 6-10
- 80% ETIF