SACO, Maine — Each state has business incentive programs to help attract and retain valuable companies.
Maine’s foremost program—the Pine Tree Development Zones program—is 20 years old and expires on Dec. 31.
As part of her biennial budget proposal, Governor Janet Mills, a Democrat, implored the Legislature to pass the Dirigo Business Incentives program, which would offer a 15 percent capital investment tax credit (7.5 percent in Cumberland, Sagadahoc, and York Counties) and apply a flat $2,000 tax credit for each worker trained in new skills.
"This is something that both parties agreed would be appropriate and important to the Maine economy," Mills told NEWS CENTER Maine after touring Saco manufacturer Tanbark, which creates super-compostable food containers and boasts partnerships with restaurant Luke's Lobster and grocery giant Hannaford. "To allow businesses in Maine to expand and hire more people, and uptrain them; upskill them in particular."
Mills added that success among businesses in rural communities was particularly important to her in the rollout of this plan. She also garners bipartisan support so far in the process, with the Dirigo program passing unanimously through the Legislature's committee on innovation, development, economic advancement, and business.
Furthermore, Republican Rep. Amanda Collamore, of Pittsfield, is a co-sponsor of the bill. She said businesses will have to invest significantly, $750,000,000, before earning the 15-percent capital investment credits, and said mandatory reporting will show exactly what works and what doesn't.
"I'm very excited about the program because of how much will be invested in the communities before any tax incentives kick in," she said, adding that there was a compromise from both major parties while negotiating the bill.
The proposal now faces approval from the appropriations committee before heading to the full Legislature.
