Pine Tree Zone expanded statewide
Gov. John Baldacci yesterday signed a bill that expands Pine Tree Zone incentives to all eligible businesses throughout the state.
The bill, LD 1473, creates a two-tiered system that offers a longer benefit period for businesses in more economically challenged areas, according to a press release from the governor's office. Businesses in municipalities in Cumberland and York counties with unemployment rates that closely align with their labor market area's unemployment rate -- known as Tier 2 -- receive 5 years of benefits. Businesses in all other municipalities, or Tier 1 locations, receive 10 years of benefits. Benefits include income tax credits, employee income tax withholding reimbursements and reduced utility rates.
Businesses are eligible for Pine Tree Zone incentives if they are a new or expanding business that promises to create new jobs. At the end of 2008, there were 213 Pine Tree Zone certified businesses in Maine, who reported plans to create more than 6,500 jobs and invest $685 million, according to the Maine Department of Economic and Community Development. Go here for more information on Pine Tree Zones.
The two-tiered system becomes effective January 2010. However, for calendar year 2009 only, all of Maine will be considered Tier 1 to encourage development during the recession, according to the release.
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