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Financial

WBRC MaineIn a global marketplace, your business needs to stay ahead of the curve to remain competitive.  Companies in Bangor have access to a number of state and local financing options.  We can help assemble the package of programs best suited for your project.

Pine Tree Development Zones

Pine Tree Development Zones (PTDZ) offer eligible businesses a powerful combination of tax incentives, as well as access to reduced electrical rates.  Primary benefits include:

  • Corporate Income Tax Credit (100%, Years 1-5; 50%, Years 6-10): the tax credit benefit derives from net new PTDZ payroll and property as a percentage of all Maine payroll and property;
  • Insurance Premiums Tax Credit (100%, Years 1-5; 50%, Years 6-10): the tax credit benefit derives from net new PTDZ payroll and property as a percentage of all Maine payroll and property; (only applies to Financial Services sector)
  • Income Tax Reimbursement (80%, Years 1-10): the tax reimbursement benefit derives from employee income taxes withheld for net new jobs created;
  • Sales and Use Tax (100% Personal Property Exemption, Years 1-10): the tax exemption benefit, effective the later of July 1, 2005 or date of certification, derives from the qualified business paying no tax on all new tangible personal property purchases for its qualified business activity;
  • Sales and Use Tax (100% Real Property Reimbursement, Years 1-10): the tax reimbursement benefit, effective the later of July 1, 2005 or date of certification, derives from paying no tax on all new tangible property purchases that are to be physically incorporated in, and become a permanent part of, real property of a qualified business and used in its qualified business activity.

Employment Tax Increment Financing

In the ETIF program, eligible businesses are reimbursed up to 80% of their new employees' Maine income tax withholdings for up to 10 years. New employees must receive an annual income greater the county's average per-capita income, and be provided access to group health insurance and a qualified retirement program.

Finance Authority of Maine (FAME)

FAME is an independent state agency that offers more than 20 financing programs, including the Maine Seed Capital Tax Credit Program - providing income tax credits to qualified investors in Maine businesses.

Small Enterprise Growth Fund

Small Enterprise Growth Fund provides patient venture capital to small Maine businesses that demonstrate a potential for high growth and public benefit.

Technology Tax Credits

Maine has several tax credit programs specifically designed to encourage the growth of technology companies in the state including the Research Expense Tax Credit, R&D Super Credit, High-Technology Investment Tax Credit, and Sales Tax exemptions for technology companies.

Jobs and Investment Tax Credit

The Jobs & Investment Tax Credit is based on the federal credit amount, which is based on investment in qualified property.  Employers can save as much as $500,000 per year for seven years by investing $5 million in personal property and creating at least 100 new jobs.  Tax credits apply toward Maine income tax.  In order to receive the credit, the business must create at least 100 new jobs within two years and invest at least $5,000,000 in one year.  Credit is limited to tax liability or $500,000, whichever is less.  Eligible businesses include any business, other than a public utility, that invests at least $5 million in a taxable year in qualifying types of personal property in Maine and creates 100 new jobs over the ensuing two-year period.  This credit cannot be used in conjunction with ETIF.

Certified Media Production Tax Credit

A media production company engaged in a media production that is certified by the Department of Economic and Community Development is allowed a credit equal to the Maine income tax related to the income from the certified media production. The credit may not reduce the entity’s tax liability below zero and unused credit amounts may not be carried over to prior or future years. Businesses claiming the Pine Tree Development Zone income tax credit under 36 M.R.S.A. § 5219-W are not eligible for this credit.

Maine Sales Tax Exemptions

Maine state sales tax exemptions are available for manufacturing, R&D, custom computer programming, fuel & electricity, biotechnology and clean fuel vehicle sales.

Tax Increment Financing (TIF)

Tax increment financing provides municipalities with a local tool to finance the cost of private development. Bangor may redirect some or all of the new property taxes from an investment project within a designated district to assist in that project's financing.

BanAir Corporation’s Regional Economic Development Revolving Loan Program

The BanAir Corporation makes direct loans to businesses that are creating or retaining jobs.  The businesses must have sales under $5,000,000 or employ 50 or fewer employees and conduct business in one of the following categories:

  1. Advanced manufacturing technologies
  2. Advanced information systems
  3. Advanced biological/natural resource technologies
  4. Conversion from defense industry
  5. Significant export involvement (goods or services)
  6. Significant research and development
  7. Micro-businesses (under 10 employees)

Loans can be for up to twenty (20) years at interest rates that are negotiated, but are usually below market and within 3% above or below the prime rate. Loans up to $50,000 can be made for up to 100% of total project cost; loans from $50,000 up to a maximum loan amount of $100,000 can be made for up to 50% of total project cost; loans from $100,000 up to a maximum loan amount of $250,000 can be made for up to 33% of total project cost.

icon Regional Economic Development Revolving Loan Program

Tax Increment Financing (TIF)

Tax increment financing provides municipalities with a local tool to finance the cost of private development. Bangor may redirect some or all of the new property taxes from an investment project within a designated district to assist in that project's financing.