An Act To Expand the Availability of Pine Tree Development Zone Benefits
Maine Legislature, Session 122, LD 0684
Committee: Business, Research and Economic Development
Amends: 30-A MRSA §5223, 30-A MRSA §5250-I, 30-A MRSA §5250-J, 36 MRSA §1760, 36 MRSA §2529, 36 MRSA §5219-W

Legislative Document 
No. 684 
S.P.220 
In Senate, February 8, 2005 
An Act To Expand the Availability of Pine Tree Development Zone 
Benefits 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
,.. 
Presented by Senator WOODCOCK pfFranklin. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §5223, sub-§3, as amended by PL 2003, c. 
451, 
Pt. 
NNN, 
§1, 
is further 
amended 
by 
amending the last 
paragraph to read: 
The conditions in paragraphs A to D do not apply to approved 
downtown 
tax 
increment 
financing districts or 
tax 
increment 
financing districts included within the Pine Tree Development 
6eRe6-ae6i~Ra~ea-aRa-appFevea Zone under subchapter ~ 1. 
Sec. 2. 30-A MRSA §5250-I, sub-§2, as enacted by PL 2003, c. 
688, Pt. D, §2, is repealed. 
688, 
Sec. 3. 30-A MRSA §5250-I, sub-§13, 
Pt. D, 
§2, is repealed and the 
place: 
as enacted by PL 2003, c. 
following enacted in its 
13. 
Pine Tree Deve10pment 
Zone. 
"Pine Tree 
Development 
Zone" or "zone" means the area in which zone benefits may be 
granted, which encompasses the entire State of Maine. 
Sec. 4. 30-A MRSA §5250-I. sub-§14. 1fA. as enacted by PL 2003, 
c. 688, Pt. D, §2, is amended to read: 
A. 
The 
exclusion from 
the limitations established under 
section 
5223, 
subsection 
of 
tax 
increment 
financing 
districts included within a the Pine Tree Development Zone; 
Sec. 5. 30-A MRSA §5250-I. sub-§16, as enacted by PL 2003, c. 
688, Pt. D, §2, is amended to read: 
16. 
Qua1ified 
business 
activity. 
"Qualified 
business 
activity" means a business activity that is conducted within a 
the 
Pine 
Tree 
Development 
Zone 
and 
is directly 
related 
to 
financial 
services, 
manufacturing 
or 
a 
targeted 
technology 
business for which the business receives a certificate from the 
commissioner pursuant to section 5250-0. 
Sec. 6. 30-A MRSA §5250-J. sub-§§1 to 4, as enacted by PL 2003, 
c. 688, Pt. D, §2, are repealed. 
Sec. 7. 30-A MRSA §5250-J, sub-§5, as enacted by PL 2003, c. 
688, Pt. D, §2, is amended to read: 
5. 
Termination. 
All 
~iRe---~~~--~~~---6eae 
ae6i~Ra~ieR6-~F{)-ved--unde-£--~Ri6-~t;e.F---aad---all Pine Tree 
Development Zone benefits are terminated on December 31, 2018. 
.. 
Sec. 8. 30·A MRSA §5250·K, sub·§§1 to 3, as enacted by PL 2003, 
c. 688, Pt. D, §2, are repealed. 
Sec. 9. 30·A MRSA §5250·K, sub·§4, as enacted by PL 2003, c. 
688, Pt. D, §2, is amended to read: 
4. 
Administration of 
zone benefits. 
The 
participating 
units of local government may contract or otherwise arrange with 
a public or private organization, including a regional council as 
described in section 2302, to administer activities authorized 
under this subchapter. 
The organization may act as the lead 
entity for the purpose of a~~±y~n~-~9F-ana administering the Pine 
Tree Development Zone benefits. 
Sec. 10. 30·A MRSA §5250·K, sub·§5, as enacted by PL 2003, c. 
688, Pt. D, §2, is repealed. 
Sec. 11. 30·A MRSA §5250·L, as enacted by PL 2003, c. 688, 
Pt. D, §2, is repealed. 
Sec. 12. 30·A MRSA §5250·M, as enacted by PL 2003, c. 688, 
Pt. D, §2, is amended to read: 
§5250-M. Program administration; rules 
The 
commissioner 
shall 
administer 
this 
subchapter. 
The 
commissioner 
shall 
adopt 
rules 
pursuant 
to 
the 
Maine 
Administrative Procedure Act for implementation of the Pine Tree 
Development Z9nes Zone, including, but not limited to, rules for 
aeteFminin~--aBa--~~~~~~~-~~i~~~~i~~,-~~~--~ae&--E9F 
aesi~na1;1e-B--ana evaluating on a periodic basis the progress and 
success of eaeh the zone in achieving its goals. Rules adopted 
under this section are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A. 
Sec. 13. 30·A MRSA §5250·P, as enacted by PL 2003, c. 688, 
Pt. D, §2, is amended to read: 
§S2S0-P. Report 
By January 15, 2004, the commissioner shall report to the 
joint standing committee of the Legislature having jurisdiction 
over 
economic 
development 
matters 
regarding 
rulemaking 
and 
progress in implementing the Pine Tree Development Z9nes Zone. 
Not later than April 1, 2005 and April 1st of each odd-numbered 
year thereafter, 
the 
commissioner shall report to the 
joint 
standing committee of the Legislature having jurisdiction over 
economic development matters on the status of the Pine Tree 
Development Z9nes Zone. 
Sec. 14. 36 MRSA §1760, sub-§86, as amended by PL 2003, c. 
688, Pt. D, §3, is further amended to read: 
86. 
Construction contracts with qualified developDle!lt zone 
businesses. 
Beginning July 1, 
2005, 
sales to 
a 
construction 
contractor of tangible personal property that is to be physically 
incorporated in, and become a permanent part of, real property 
that is owned by or for sale to a qualified Pine Tree Development 
Zone 
business, 
as 
defined 
in 
Title 
30-11., 
section 
5250-I, 
subsection 17, which real property will be used in the qualified 
business activity, 
as defined in, Title 
30-11., 
section 5250-I, 
subsection 
16, 
of 
the qualified 
Pine 
Tree 
Development 
Zone 
business in a the Pine Tree Development Zone, as defined in Title 
30-11., section 5250-1, subsection 13. 
The exemption provided by 
this subsection is limited to sales to a construction contractor 
occurring within a period of 10 years from the date the qualified 
Pine Tree Development Zone business receiving the property is 
certified pursuant 
to 
Title 
30-11., 
section 
5250-0 
or 
until 
December 31, 2018, whichever occurs first. 
Sec. 15. 36 MRSA §2529, sub-§I, ~~A and B, as amended by PL 
2003, c. 688, Pt. D, §4, are further amended to read: 
A. 
One hundred percent of the tax associated with premiums 
sold by a qualified business located in a 
the Pine Tree 
Development 
Zone that would otherwise be due 
under this 
chapter for each of the first 5 taxable years that for which 
the taxpayer is required to file a return pursuant to this 
chapter beginning after the taxpayer commences its qualified 
business activity, as defined in Title 30-11., section 5250-I, 
subsection 16, 
and that are directly attributable to 
a 
qualified business activity; and 
B. 
Fifty percent of the tax associated with premiums sold 
by a qualified business in a the Pine Tree Development Zone 
that would otherwise be due under this chapter for each of 
the taxable years beginning with the 6th taxable year and 
ending with 
the 
10th taxable 
year 
that 
for 
which 
the 
taxpayer is required to file 
a 
return pursuant to this 
chapter after the taxpayer commences its qualified business 
activity, 
as 
defined 
in 
Title 
30-11., 
section 
5250-1, 
subsection 16, 
and that are attributable to 
a 
qualified 
business activity. 
Sec. 16. 36 MRSA §2529, sub-§2, as amended by PL 2003, c. 688, 
Pt. D, §4, is repealed. 
Sec. 17. 36 MRSA §5219-W, sub-§I, as amended by PL 2003, c. 
688, Pt. D, §5, is further amended to read: 
1. 
Credit a11owed. 
EHeep~-a~-~~~~~~~-br-a b 
taxpayer that is a qualified Pine Tree Development Zone business 
as 
defined in Title 
30-A, 
section 5250-1, 
subsection 17 
is 
allowed a credit in the amount of: 
A. 
One hundred percent of the tax that would otherwise be 
due under this Part for each of the first 5 taxable years 
that the taxpayer is required 
this 
Part 
beginning 
after 
qualified business 
activity, 
section 5250-1, subsection 16; 
to 
the 
as 
and 
file a return pursuant to 
taxpayer 
commences 
its 
defined 
in Title 
30-A, 
B. 
Fifty percent of the tax that would otherwise be due 
under this Part for each of the taxable years beginning with 
the 6th taxable year and ending with the 10th taxable year 
that the taxpayer is required to file a return pursuant to 
this 
Part 
after 
the 
taxpayer 
commences 
its 
qualified 
business activity, as defined in Title 30-A, section 5250-1, 
subsection 16. 
Sec. 18. 36 MRSA §S219-W. sub-§2, as amended by PL 2003, c. 
688, Pt. D, §5, is repealed. 
SUMMARY 
This bill designates the entire State as the "Pine Tree 
Development Zone," enabling qualifying businesses anywhere in the 
State to access Pine Tree Development Zone benefits.