Tax Incentives

Tax Increment Financing (TIF)

is a local financing tool that allows a municipality to use all or a portion of new property taxes that will result from a significant private investment project within a designated district to support that project’s financing.  The municipality may issue bonds which are retired using the tax increment, give the tax increment directly to the investing business to cover project costs, or retain it for allowable economic development purposes.  Bonds may be issued for up to 20 years.  TIF districts may be designated for up to 30 years.  Financing terms are determined by the municipality.

Contact:

Maine Department of Economic and Community Development
Office of Business Development
207-624-9800

Business Equipment Property Tax Reimbursement Program (BETR)

reimburses for up to 12 years 90% of all local property taxes paid on eligible business equipment and property.  New equipment installed after April 1, 2007 is exempt from local personal property taxes.

Contact:

Maine Department of Economic and Community Development
Office of Business Development
207-624-9800

Western Maine recreational ski areaEmployment Tax Increment Financing (ETIF)

reimburses qualified businesses either 30%, 50% or 75% of their new employees’ Maine income tax withholdings for up to 10 years.  Any for-profit, non-retail, non-utility business may qualify that adds a minimum of five net new jobs within a two-year period.  Companies with current Maine employees must exceed their existing employment level.  Employees of companies relocating to Maine with no previous Maine presence are considered “new”.  To qualify, new employees must receive an annual income greater than the county’s average per capita income, and be provided access to group health insurance and an Employee Retirement Income Act qualified retirement program.

Contact:

Maine Department of Economic and Community Development
Office of Business Development
207-624-9800