Maine Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Maine, and their state economic development professionals gave us some details (Maine Economic and Community Development site click here).
Maine offers a good mix of tax credits and reimbursements for new and existing businesses, but other factors hurt their overall competitive position for business.  CNBC ranked Maine #44 in their 2015 America’s Top States for Business survey (Georgia was #5 in the same survey).    
Credits and reimbursements include:
Employment Tax Increment Financing — new or growing Maine businesses can save up to 80% of withholding taxes for new employees for as long as 10 years depending on location and industry.

Pine Tree Development Zone — For 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.  Significant corporate income tax credits for hiring new employees.

Business Equipment Tax Relief — 100% tax exemption from personal property taxes on eligible business equipment.

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.

Compared to Georgia, Maine has:
  • Higher corporate and personal income tax rates.
  • A narrower range of incentives.
  • Pre-approvals required for all incentives
To summarize, Maine is below average for business tax incentives, but their upper Eastern Seaboard location could provide advantages, depending on logistical needs.
Do any of your clients have Maine connections?  If so, you will need to start collecting information and planning early!

DaleSig