Incentives
Pine Tree Development Zones (PTDZ)
- State corporate income tax credits: 100% first 5 years; 50% next 5 years
- 100% sales and use tax exemptions for both real and personal property
Employment Tax Increment Financing (ETIF)
- Annual payments to the company based upon employees’ state income tax withholding. PTDZ participants get the maximum payment rate: 80% of withholding for qualified employees.
Municipal Tax Increment Financing (MTIF)
- MTIF may be used by the Town of Millinocket to leverage new property taxes generated by a specific project with a defined geographical district.
- Any portion of the taxes may be used to finance projects for up to 30 years.
Business Equipment Tax Exemption (BETE)
- 100% local property tax exemption on business equipment
New Markets Tax Credits (NMTC)
- Net contribution of 22-26% of total project capital, forgiven after 7 years
Foreign Trade Zone (FTZ)
- One North ready to pursue designation as an FTZ
FINANCING
Finance Authority of Maine (FAME)
Direct Loan:
Up to $500,000 loan. If the project exhibits substantial public benefit, a larger amount may be available, with 5-year term and a lower interest rate depending on the project.
Maine Rural Development Authority
Commercial Development Program:
Up to $500,000 loan; a business can request patient debt.
USDA Rural Development
The USDA Rural Development Business and Industry (B&I) Loan Guaranty Program offers loan guarantees to lenders for their loans to rural businesses.
Maine Technology Institute
Maine Technology Institute offers up to $100,000 in grant funding and up to $500,000 in patient, low-cost debt.
Small Business Association (SBA)
Loan Guarantee:
- Up to $5 million (or up to $5.5 million for small manufacturing)
- EDA Title 1 Public Works
- Grants, Loans, Loan Guarantees
- Up to $1.5 million
Governmental Bonds:
- Determined by municipality and project needs
- Private Activity Bonds
