An Act To Make Changes to the Pine Tree Development Zones
Maine Legislature, Session 122, LD 0449
Committee Amendment CA_A_S297 (Senate)
Amends: 30-A MRSA §5250-I, 30-A MRSA §5250-K, 36 MRSA §1760, 36 MRSA §2016, 36 MRSA §2529, 36 MRSA §5219-W, 36 MRSA §6753, 36 MRSA §6757, 36 MRSA §6758

COMMITTEE 
AMENDMENT "A· to S.P. 147, L.D. 449, 
Act To Make Changes to the Pine Tree Development Zones" 
Bill, "An 
Amend the bill by striking out everything after the title 
and before the summary and inserting in its place the following: 
. Emergency preamble. Whereas, acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, changes to the Pine Tree Development Zone laws are 
required to simplify the zone amendment process, to clarify the 
sales tax exemptions before they become effective on 
July l, 
2005 and to allow for more efficient and effective administration 
of the Pine Tree Development Zones; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §5250-I, sub-§§3 to 5, as enacted by PL 2003, 
c. 688, Pt. D, §2, are amended to read: 
3. 
Average 
employment 
during 
base 
period. 
"Average 
employment during the base period" for a business means the total 
Page l-LR0416(2) 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A to S.P. 147, L.D. 449 
number of 
~1:ia*iEiee employees of that business aa--eaGh---€>'f--a 
eaasee1:i~iye-~~~~-~-1a-e~€~-~-~h&-~-~~-~~-ia 
~Re-~-~~1&G-~~-~-BY-~~-&1:i&1&&&&-~~¥~~e~-~-*8 as of 
each March 31st, June 30th, September 30th and December 31st of 
the base period, divided by 12. 
4. 
Base level of employment. 
"Base level of employment" 
means the greater of either the total employment in the State of 
a business aaQ--i-t-s--a-f-f-i-1-.i,.a.t;.ed.-l:uisiaesses as of 
~Re March 31st, 
June 30th, September 30th and December 31st of the calendar year 
immediately preceding 
i~6-~~~~~~€~~4aB-~-a-~1:ia~4Eiee the year 
of the business's application to become a certified Pine Tree 
Development Zone business divided by 4 or its average employment 
during the base period. 
5. 
Base period. 
"Base period" means the 3 calendar years 
prior to the year in which a business 4s applies to be certified 
as a qualified Pine Tree Development Zone business. 
Sec. 2. 30-A MRSA §S2S0-I, sub-§14, 1J1JC and D, as enacted by PL 
2003, c. 688, Pt. D, §2, are amended to read: 
read: 
C. 
The 
sales 
tax 
eHem~~4aas exemption 
under Title 
36, 
section 1760, S1:iBSee61aa&-8&-aBe subsection 87 and the sales 
tax reimbursement under Title 36, section 2016; aae 
D. The Pine Tree Development Zone tax credits provided by 
Title 36, sections 2529 and 5219-WTL 
Sec. 3. 30·A MRSA §5250·I, sub·§14, 1J1JE and F are enacted to 
E. 
Discounted 
rates 
approved 
by 
the 
Public 
Utilities 
Commission, if applicable, and offered by transmission and 
distribution utilities 
as 
authorized 
under 
Title 
A, 
section 3210-B, subsection Ii and 
F. 
Line extensions and conservation programs a,pproved or 
authorized by the Public Utilities Commission under Title 
35-A, section 3210-B, subsections 2 and 3. 
Sec. 4. 30·A MRSA §S2S0-I, sub·§§17 and 18, as enacted by PL 
2003, c. 688, Pt. D, §2, are amended to read: 
17. 
Qualified 
Pine 
Tree 
Development 
Zone 
business. 
"Qualified Pine Tree Development Zone business" or "qualified 
business" means any for-profit business in this State engaged in 
or that will engage in financial services, manufacturing or a 
targeted technology business that aees has added or will add at 
least one qualified Pine Tree Development Zone em~*ayees employee 
COMM/rrEE AMENDMENT 
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COMMITTEE AMENDMENT ,A" to S.P. 147, L.D. 449 
above its base level of employment in this State and that meets 
the following criteria: 
A. 
It demonstrates that the establishment or expansion of 
operations within the Pine Tree Development Zone would not 
occur within the State absent the availability of the Pine 
Tree 
Development 
Zone 
benefits. 
The 
department 
shall 
~Bvess4~ase determine 
whether 
the 
business 
has 
met 
the 
requirements 
of this paragraph 
aBa--pFev4ae--aB--aav4seFY 
ep4B4eB-~~-~-iHeeQs4ve-~~~~-~~-she-~~~~-ReveBQe 
SeFviees-~~-~ae-~~~-~~-AaffiiBi6~£a~ive-~-~4BaBe4a~ 
SeFv4eesT-whe-sha~~-ffia*e-she-~iBa~-aeserffiiBas4eB; and 
B. It has received a certificate as a qualified business 
pursuant to section 5250-0. 
. 
Qualified 
Pine 
Tree 
Development 
Zone 
employees. 
"Qualified Pine 
Tree 
Development 
Zone 
employees" 
means 
new, 
full-time employees hired in this State by a qualified Pine Tree 
Development 
Zone business for 
work directly in one 
or more 
qualified business activities 
for 
whom 
a 
retirement 
program 
subject to the Employee Retirement Income Security Act of 1974, 
United States Code, Sections 101 to 1461 {-aQQ6t, as amended, 
and group health insurance are provided and whose 
wa~es income 
derived from employment within the Pine Tree Development Zone 
aFe, calculated on a calendar year basis, is greater than the 
avera~e mQst recent annual per capi ta wa~es personal income in 
she-*e~~*-~~-~~-&r&&-iB the county in which the qualified 
employee is employed. 
:Qualified Pine Tree 
Development 
Zone 
employees 
ffiQSs--be---£~H;44eB~-s--G-~-~hl-&--Ssase " does not include 
employees 
shifted 
to 
a 
qualified 
business 
activity 
from 
a 
nonqualified activity of the qualified Pine Tree Development Zone 
business 
or 
an affiliated business. 
The 
commissioner 
shall 
determine whether a shifting of employees has occurred. 
Sec. 5. 30-A MRSA §S250-J, sub-§3, as enacted by PL 2003, c. 
688, Pt. D, §2, is amended to read: 
3. 
Limitations. 
The designation of Pine Tree Development 
Zones is subject to the following limitations: 
A. 
The total area of a 
zoneT--4-ncl-udi~-&l-l--BeB€eB~i~QeQs 
paree~ST may not exceed 5,000 
acres.~, __ ~w~h~i~c~hL-~n~e~e~d~~n~o~t~~b~e 
contiguous. 
In 
calculating 
the 
5tOOO-acre 
limit, 
only 
developable acres may be counted; 
B. 
A zone located in Aroostook County as described in 
subsection 1, paragraph A may include property that is also 
included within the Aroostook County Empowerment Zone as 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT A 
.. to S.P. 147, L.D. 449 
designated by the federal Community Renewal Tax Relief Act 
of 2000, Public Law 106-554; 
C. 
Pine Tree Development Zone benefits may not be used to 
encourage or facilitate the transfer of existing positions 
or property of a qualified business or affiliated businesses 
iRte to a Beae qualified business activity from a leeatieR 
nonqualified activity elsewhere in the State; 
D. 
Pine Tree Development Zone benefits may not be provided 
based upon any property, employees or positions transferred 
by the business or affiliated businesses iRte tQ a 
PiRe-~~ee 
QevelepffieRt-ZeRe qualified business activity from a leeatieR 
elsewhe~e-iR-the-State nonqualified activity; 
ET--~-PiRe-~~-QevelepffieRt-~-ffiay-~--eeRsist-~--ffie~e 
thaR-aQ-ReReeRti§Q9QS-pa~eels-eE-p~epe~tyt 
F. 
All-~~~~-iRelQaea-~it~~-the-~-~-eE-~-PiRe 
~~ee-~~~-~-ma&t-ee-~~~~-~r-eRe One or more 
qualified Pine Tree Development 
Zone 
business activities 
must be a permissible activity in the Pine Tree Development 
Zone; 
G. 
All property included within a Pine Tree Development 
Zone must meet one of the following: 
(1) 
The property is located wi thin a market area for 
which the labor market unemployment rate is greater 
than the state unemployment rate at the time of the 
application; or 
(2) 
The property is included within a county in which 
the average weekly wage is below the state average 
weekly wage at the time of the application. 
In the case of a multijurisdictional or joint application, 
the requirements of this paragraph are met if the combined 
unemployment 
rate 
of 
the 
cooperating 
units 
of 
local 
government meets the requirements of subparagraph (1) or the 
average 
weekly 
wage 
of 
the 
cooperating units 
of 
local 
government, 
on 
a 
per-employed-worker 
basis, 
meets 
the 
requirements of subparagraph (2); and 
H. 
The restrictions contained in paragraph G may be waived 
for property that is contained within a labor market area 
that has sustained a greater than 5% loss of population or 
employed 
workers 
during 
the 
3-year 
period 
immediately 
preceding the time of application if the loss was caused by 
business closings. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A to S.P. 147, L.D. 449 
Sec. 6. 30-A MRSA §5250-K, sub-§§3 and 5, as enacted by PL 
2003, c. 688, Pt. D, §2, are amended to read: 
3. 
Effective date. 
The 
establishment of 
a 
Pine 
Tree 
Development Zone is effective upon preliminary designation by the 
commissioner. 
5. 
Amendments. 
~he-~e£4~~a~4~7-~~--~~r-&affi&&~-aaa 
eea{i~~~a~iea-~-~~-~a~eel&-4~-~-~~&&-~£ee-~~-~-e~ 
t;he--t,e~lRs All aspects of a 
development plan as described in 
section 
5250-J, 
subsection 
4. 
including 
the 
designation 
of 
additional acreage, may be amended by aa-a.f.f4£fIlat:,ive a majority 
vote of all the participating units of local government 
as 
evidenced by either a majority vote of the municipal officers or 
legislative body of each unit of local government or their 
representatives on the zone's governing body. 
A participating 
unit 
of 
local 
government 
may 
amend, 
or 
entirely 
remove 
designation 
of. 
previously 
designated 
acreage 
within 
its 
jurisdiction by a majority vote of its municipal officers or 
legislative body, as long as the amendment does not increase its 
total acres. 
In no case mayan amendment adversely affect the 
Pine Tree Development Zone benefits of a qualified business. 
An 
amendment may not result in the zone's being out of compliance 
with any of the requirements in section 5250-J. 
Sec. 7. 36 MRSA §1760, sub-§86, as amended by PL 2003, c. 688, 
Pt. D, §3, is repealed. 
Sec. 8. 36 MRSA §1760, sub-§87, as amended by PL 2003, c. 688, 
Pt. D, §3, is further amended to read: 
87. 
Sales of 
tanqible personal 
property to qualified 
development zone businesses. 
Beginning July 1, 2005, sales of 
tangible personal property to a qualified Pine Tree Development 
Zone 
business, 
as 
defined 
in 
Title 
30-A, 
section 
5250-1, 
subsection 17, for use directly and primarily in one or more 
qualified business activities, as defined in Title 30-A, section 
5250-1, subsection 16. 
The exemption provided by this subsection 
is limited for each qualified Pine Tree Development Zone business 
to sales occurring within a period of 10 years from the date the 
business is certified pursuant to Title 30-A, section 5250-0 or 
until December 31, 2018, whichever occurs first. 
As used in this 
subsection, "primarily" means more than 50°1> of the time during 
the period that begins on the date on which the property is first 
placed in service by the purchaser and ends 2 years from that 
date or at the time the property is sold, scrapped, destroyed or 
otherwise permanently 
removed 
from service 
by the purchaser, 
whichever occurs first. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ~, to S.P. 147, L.D. 449 
Sec. 9. 36 MRSA §2016 is enacted to read: 
§2016. Pine Tree Development Zone businesses: reimbursement of 
certain taxes 
1. 
Terms defined. 
As 
used in this section, 
the 
terms 
"qualified Pine Tree Development Zone business" and "qualified 
business activity" have the meanings given to them in Title 30-A, 
section 5250-1. For the purposes of this section, "primarily" 
means more than 50% of the time during the period that begins on 
the date on which the property is first placed in service by the 
purchaser and ends 2 years from that date or at the time the 
property is sold, destroyed or otherwise permanently removed from 
service by the purchaser, whichever occurs first. 
2. 
Reimbursement allowed. 
A reimbursement is allowed as 
provided in this section for a tax paid pursuant to this Part 
with respect to the sale or use of tangible personal property 
that is physically incorporated in and becomes a permanent part 
of real property that is owned by or sold to a qualified Pine 
Tree Development Zone business and that is used directly and 
primarily by that business in one or more qualified business 
activities. 
3. Claim for reimbursement. 
Claims under this section for 
reimbursement of taxes are controlled by this subsection. 
A. 
A claim for reimbursement under this section must· be 
filed by the contractor or subcontractor with the State Tax 
Assessor within 3 years from the date on which the tangible 
personal property was incorporated into real property. The 
reimbursement claim must be submitted on a form prescribed 
by the assessor and must be accompanied by a statement from 
a qualified Pine Tree Development Zone business certifying, 
under penalti~s of perjury, that the personal property with 
respect to which the tax was paid by the claimant has been 
placed in use directly and primarily in a qualified business 
activity. All records pertaining to such certification and 
to the tran§actions in question must be retained for at 
least 6 years by the contractor or subcontractor, by the 
qualified Pine Tree Development Zone business and by the 
person, if any, that sold the real property in question to 
that business. The reimbursement claim must be accompanied 
by such additional information as the assessor may require. 
If a sales or use tax is included in the contractor's or 
subcontractor's 
contract 
price, 
the 
contractor 
or 
subcontractor shall file, at the request of the qualified 
Pine 
Tree 
Development 
Zone 
business, 
a 
claim 
for 
reimbursement in accordance with this section and pay the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT A 
.. to S.P. 147, L.D. 449 
reimbursement to the qualified Pine Tree Development Zone 
business. 
B. 
If, by agreement between the contractor or subcontractor 
and the qualified Pine Tree Development Zone business, the 
contractor or subcontractor assigns its right to claim and 
receive reimbursement, the qualified Pine Tree Development 
Zone 
business 
must 
file 
a 
claim 
for 
reimbursement 
in 
accordance with this subsection. 
A reimbursement may not be 
issued to a qualified Pine Tree Development Zone business 
under this paragraph unless the contractor or subcontractor 
has previously submitted to the bureau a certificate, signed 
by 
the 
contractor 
or 
subcontractor, 
releasing 
the 
contractor's or subcontractor's claim to the reimbursement. 
The certificate must 
be 
in 
a 
format prescribed by the 
assessor. 
4. 
Limitations. 
The 
following 
are 
the 
limitations 
on 
reimbursements made pursuant to this section. 
A. 
Reimbursements 
made 
by the assessor pursuant to this 
section are limited to taxes paid in connection with sales 
of tangible personal property that occur within a period of 
years from the date the gualified Pine Tree Development 
Zone business receiving the property is certified pursuant 
to Title 30-A, 
section 5250-0 or by December 
31, 
2018, 
whichever occurs first. 
B. Reimbursement pursuant to this section of taxes paid in 
connection with 
the 
sale 
of 
tangible personal property 
subsequently attached to real property may not be made when 
those real property improvements: 
(1) Are owned by more than one person prior to their 
acquisition by the qualified Pine Tree Development Zone 
business 
whose 
certification 
accompanies 
the 
reimbursement claim pursuant to subsection 3: or 
(2) Have been used for a business purpose by a person 
other than the qualified Pine Tree Development 
Zone 
business 
whose 
certification 
accompanies 
the 
reimbursement claim pursuant to subsection 3. 
5. Audit. 
The assessor has the authority to audit any claim 
filed under this section. If the assessor determines that the 
amount of the claimed reimbursement is incorrect, the assessor 
shall redetermine the claim and notify the claimant in writing of 
the redetermination. If the claimant has received reimbursement 
of an amount that the assessor concludes should not have been 
reimbursed, the assessor may issue an assessment for that amount 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT A .. to S.P. 147, L.D. 449 
within 3 years from the date the reimbursement claim was filed or 
at any time if a fraudulent reimbursement claim was filed. The 
claimant may seek reconsideration, pursuant to section 151, of 
the redetermination or assessment. 
6. 
PaJm@nt 
af 
claims. 
The 
State 
Tax 
Assessor 
shall 
determine the benefit for each claimant under this section and 
certify to the State Controller the amount to be transferred to 
the Pine Tree Development 
Zone 
reimbursement 
reserve account 
established, maintained and administered by the State Controller 
from 
General 
Fund 
undedicated 
revenue 
within the 
sales 
tax 
category. 
The assessor shall pay the certified amounts to each 
approved applicant qualifying for the benefit under this section 
within 30 
days after receipt of a 
properly completed claim. 
Interest is 
nQt 
allowed on any 
payment made 
to 
a 
claimant 
pursuant to this section. 
Sec. 10. 36 MRSA §2529, sub-§I, ~~A and B, as amended by PL 
2003, c. 688, Pt. D, §4, are repealed and the following enacted 
in their place: 
A. 
One hundred percent of the tax that would otherwise be 
due under this chapter upon premiums that are attributable 
to a qualified business activity as defined in Title 30-A, 
sectiQn 5250-1, subsection 16 for each of the first 5 tax 
years beginning with the tax year in which the taxpayer 
cQmmences its qualified business activity; and 
B. 
Fifty percent of the tax that would otherwise be due 
under this chapter upon premiums that are attributable to a 
qualified 
business 
activity 
as 
defined 
in Title 
30-A, 
sectiQn 5250-1, subsection 16 for each of the 5 tax years 
following the time period in paragraph A. 
Sec. 11. 36 MRSA §2529, sub-§2, as amended by PL 2003, c. 688, 
Pt. D, §4, is repealed and the following enacted in its place: 
2. 
Al?portianed credit in certain circumstances. 
In the 
case of 
a 
qualified Pine Tree 
Development 
Zone 
business as 
defined in Title 30 A, section 5250-1, subsection 17 that engages 
in both qualified and nQnqualified business activities in the 
State, the credit prQvided for in this section is limited to that 
portion that is attributable to the qualified business activity. 
The 
limitation 
is 
calculated 
by 
an 
apportionment. 
The 
apportionment is determined by a fraction, the numerator of which 
is the property value plus the payrQll for the taxable year 
attributed to the qualified business activity of the business and 
the denQminatQr of which is the statewide property value plus 
payroll for the taxable year of the business. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,~ to S.P. 147, L.D. 449 
If the apportionment prov1s10ns of this subsection do not fairly 
reflect the amount of the credit associated with the taxpayer's 
gualified business activity, the taxpayer may petition for, or 
the State Tax Assessor may reguire, in respect to all or any part 
of the taxpayer's business activity, the employment of another 
reasonable method to effectuate an eguitable apportionment of the 
credit associated with the taxpayer's gualified business activity. 
Sec. 12. 36 MRSA §2529, sub-§4 is enacted to read: 
4. 
Definitions. 
As 
used 
in this 
section. 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Property" means the average value of the taxpayer's 
real and tangible personal property that is owned or rented 
and used during the tax period. 
Property owned by the 
taxpayer is valued at its original cost. 
Property rented by 
the taxpayer is valued at 8 times the net annual rental 
rate. 
The net annual rental rate is the annual rental rate 
paid by the taxpayer. 
B. 
"Payroll" means the total amount paid in this State 
during the tax period by the taxpayer for compensation. 
including wages, 
pretax employee contributions made to a 
benefit 
package 
and 
employer 
contributions 
made 
to 
an 
employee benefit package. 
Sec. 13. 36 MRSA §S219-W, sub-§I, 1J1JA and B, as amended by PL 
2003, c. 688, Pt. D, §5, are repealed and the following enacted 
in their place: 
A. 
One hundred percent of the tax that would otherwise be 
due under this Part for each of the first 5 
tax years 
beginning witb the tax year in which the taxpayer commences 
its gualified business activity, as defined in Title 30-A. 
section 5250-I, sUbsection 16: and 
B. 
Fifty percent of the tax that would otherwise be due 
under this Part for each of the 5 tax years following the 
time period in paragraph A. 
Sec. 14. 36 MRSA §5219-W, sub-§2, as amended by PL 2003, c. 
688, Pt. D, 
§5, is repealed and the following enacted in its 
place: 
2. 
Apportioned credit in certain circumstances. 
In the 
case of 
a 
gualified Pine Tree Development 
Zone 
business as 
defined in Title 30-A, section 5250-I, subsection 17 that engages 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A" to S. P. 147, L. D. 449 
in both qualified and nonqualified business activities in this 
State, the credit provided for in this section is limited to that 
portion that is attributable to the qualified business activity. 
The 
limitation 
is 
calculated 
by 
an 
apportionment. 
The 
apportionment is determined by a fraction, the numerator of which 
is the property value plus, the payroll for the taxable year 
attributed to the qualified business activity of the business and 
the denominator of which is the statewide property value plus 
payroll for the taxable year of the business. 
If the qualified business is a 
taxable corporation that has 
affiliated groups, as defined in section 5102, subsection l-B, 
engaged in 
a 
unitary business, 
as defined in section 5102, 
subsection 10-A, the property and payroll values in the State of 
the 
unitary 
affiliated 
groups 
must 
be 
included 
in 
the 
apportionment fraction. The resulting fraction must be multiplied 
by the total tax liability otherwise dye under this Part of the 
qualified bysiness and those affiliated groyps. 
If the apportionment provisions of this sybsection do not fairly 
reflect the amoynt of the credit associated with the taxpayer's 
qyalified business activity, the taxpayer may petition for. or 
the State Tax Assessor may require. in respect to all or any part 
of the taxpayer's bysiness activity. the employment of another 
reasonable method to effectuate an eqyitable apportionment of the 
credit associated with the taxpayer's qualified business activity. 
Sec. 15. 36 MRSA §5219-W, sub-§3, 
451, 
Pt. 
NNN, 
§5 
and 
affected by 
following enacted in its place: 
as enacted by PL 2003, c. 
§8, 
is repealed 
and 
the 
3~ 
lIcmbgr§ 
gf 
;e!:&§s thrQygh 
§Jat.it.ig§. 
A 
mgmQer 
Qf 
a 
~asl2 tbrQygb gntHy that is a qyalHigg Pine Tre{;: 
I;1eve l Qpment 
Z!QIU~ 
;QYliiiniU, 
as 
ggUngg 
in Title 
JQ-A, 
IHH.:tign 
52~Q-I, 
sybsection 17. is allowed a credit ynder this section based on 
the tax due under this Part related to items of incQmg, gain, 
deduction, loss gr other items required to be reported by the 
pass-through 
entity 
to 
the 
member. 
For 
purposes 
of 
this 
sUQsectign, "pass-through entity" means 
a corporation that for 
the applicable tax year is treated as an S cgrporation unger the 
Coge 
and 
a 
partnership, 
tryst, 
limited liability company or 
similar entity that for the applicable tax year is not taxed as a 
C 
corporation 
for 
federal 
tax 
purposes; 
"member" 
means 
an 
indivigual or other owner of a pass-through entity. 
Sec. 16. 36 MRSA §5219-W, sub-§5 is enacted to read: 
5. 
Definitions. 
As 
used 
in this section, 
unless 
the 
context 
otherwise 
ingicates. 
the 
following 
tgrms 
have 
the 
following meanings. 
COMMITTEE AMENDMENT 
~tJ.~ 
COMMITTEE AMENDMENT "A'to S.P. 147, L.D. 449 
A. 
"Property" means the average value of the taxpayer I s 
real and tangible personal property that is owned or rented 
and used during the tax period. 
Property owned by the 
taxpayer is valued at its original cost. 
Property rented by 
the taxpayer is valued at 8 times the net annual rental 
rate. 
The net annual rental rate is the annual rental rate 
paid by the taxpayer. 
B. 
"Payroll" means the total amount paid in this State 
during the tax period by the taxpayer for compensation, 
including wages, 
pretax employee contributions made to a 
benefit 
package 
and 
employer 
contributions 
made 
to 
an 
employee benefit package. 
Sec. 17. 36 MRSA §6753, sub-§l, as enacted by PL 1995, c. 669, 
§5, is repealed. 
Sec. 18. 36 MRS A §6753, sub-§l-A is enacted to read: 
l.-A. 
Affil.iated business. 
"Affiliated business" 
means 
a 
member of a group of 2 or more businesses in which more than 50% 
of the voting stock of each member corporation or more than 50'1-0 
of the Qwnership interest in a business Qther than a corporation 
is directly Qr indirectly owned by a 
common Qwner or owners, 
either corpQrate or noncorporate, or by Qne or more of the member 
businesses. 
Sec. 19. 36 MRS A §6753, sub-§2, as enacted by PL 1995, c. 669, 
§5, is repealed. 
Sec. 20. 36 MRSA §6753, sub-§3-A is enacted to read: 
3-A. 
Average 
etnploJlOOnt 
during 
base 
period. 
"Ayerage 
employment during the base periQd" for a business means the tQtal 
number Qf employees of that business as of each March 31st, June 
30th, 
September 
30th and December 
31st of the base period, 
divided by 12. 
Sec. 21. 36 MRSA §6753, sub-§4, as enacted by PL 1995, c. 669, 
§5, is amended to read: 
4. 
Base l.evel of employment. 
"Base level of employment" 
means the greater of either the total employment of a business as 
of the March 31st, June 30th, September 30th and December 31st of 
the 
calendar 
year 
immediately 
preceding 
the 
applicatiQn 
for 
approval of the employment tax increment financing development 
program divided by 4 or its average employment during the base 
period. 
Page ll-LR0416(2) 
COMMITTEE AMENDMENT 
~~~ 
~ 
COMMITTEE AMENDMENT ,~, to S.P. 147, L.D. 449 
Sec. 22. 36 MRSA §6753, sub-§7, as enacted by PL 1995, c. 669, 
§5, is amended to read: 
7. 
Employment tax increment. 
"Employment tax increment" 
means 
that 
level 
of 
employment, 
payroll 
and 
state 
income 
withholding taxes ~ttributed to qualified employees employed by a 
qualified business 
above 
the 
base 
level 
for 
the 
qualified 
business, adjusted pursuant to 
seetieB--~~&~ subsection 12 for 
shifts in employment by affiliated businesses. 
Sec. 23. 36 MRSA §6753, sub-§12, as amended by PL 2003, c. 
391, §13, is further amended to read: 
12. 
Qualified employees. 
"Qualified employees" means new, 
full-time employees hired in this State by a qualified business 
and 
for 
whom 
a 
retirement 
program subject 
to 
the 
Employee 
Retirement Income Security Act of 1974, 29 United States Code, 
Sections 101 to 1461, as amended, and group health insurance are 
provided, 
and whose 
income derived 
from 
employment with the 
applicant, calculated on a calendar year basisL 
is greater than 
the most recent ave~a~e annual wa~e per capita personal income in 
the county in which the qualified employee is employed and whose 
state income withholding taxes are subject to reimbursement to 
the qualified business under this chapter. 
~Qua1ified employees 
Rll:lst;--be---£e-644eR-t.-6-~~--t-h:i-&--St;ate " does not include employees 
shifted to a qualified business from an affiliated business. 
The 
commissioner shall determine whether a shifting of employees has 
occurred. 
Sec. 24. 36 MRSA §6757, as enacted by PL 1995, c. 669, §5, is 
repealed. 
Sec. 25. 36 MRSA §6758, sub-§2, as repealed and replaced by PL 
1999, c. 127, Pt. A, §51, is amended to read: 
2. 
Determination by assessor. 
On or before June 30th of 
each year, 
the 
assessor 
shall 
determine 
the 
employment 
tax 
increment of each qualified business for the preceding calendar 
year. 
A qualified business may receive up to 
~9% 80% of the 
employment tax increment generated by that business as determined 
by the assessor, subject to the further limitations in section 
6754, 
subsection 2. 
That amount is referred to as "retained 
employment tax increment revenues." 
Sec. 26. Application. 
That section of this Act that amends 
the 
Maine 
Revised 
Statutes, 
Title 
30-A, 
section 
5250-I, 
subsections 17 and 18 applies retroactively to June 12, 
2003, 
except that changes to subsection 17, paragraph A are effective 
upon enactment. 
That section of this Act that amends Title 3D-A, 
section 5250-J, subsection 3 applies retroactively to June 12, 
COMMITTEE AMENDMENT 
,&~' 
~i 
COMMITTEE AMENDMENT ,~, to S.P. 147, L.D. 449 
2003. 
The amendment in this Act of Title 30-A, section 5250-K, 
subsection 
applies 
retroactively to 
June 
12, 
2003. 
That 
section 
of 
this 
Act 
that 
repeals Title 
36, 
section 
1760, 
subsection 86 applies retroactively to sales occurring on or 
after July 1, 2005. 
That section of this Act that amends Title 
36, 
section 1760, 
subsection 
applies 
to qualified sales 
occurring on or after July 1, 2005. 
That section of this Act 
that enacts Title 36, section 2016 applies to qualified sales 
occurring on or after July 1, 2005. 
Those sections of this Act 
that repeal and replace Title 36, section 2529, 
subsection 1, 
paragraphs A and B and subsection 2 apply retroactively to tax 
years beginning on or after January 1, 2004. 
Those sections of 
this 
Act that repeal 
and replace Title 36, 
section 52l9-W, 
subsection 1, paragraphs A and B and subsections 2 and 3 apply 
retroactively to tax years beginning on or after January 1, 
2004. 
That section of this Act that amends Title 36, section 
6753, 
subsection 
applies 
retroactively 
to 
applications 
submitted by a qualified business on or after September 13, 
2003. 
That section of this Act that amends Title 36, section 
6753, 
subsection 
applies 
retroactively 
to 
applications 
submitted by a qualified business on or after September 13, 
2003. 
That section of this Act that repeals Title 36, section 
6757 
applies 
retroactively 
to 
applications 
submitted 
by 
a 
qualified business on or after September 13, 2003. 
That section 
of this Act that amends Title 36, section 6758, 
subsection 2 
applies retroactively to January 1, 2004. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved.' 
SUMMARY 
This amendment replaces the bill, adds an emergency preamble 
and clause and makes the following changes to the laws governing 
the Pine Tree Development Zone, or "zone," program. 
It 
clarifies 
the 
method 
for 
determining 
baseline 
information, adds language to adjust employment seasonality and 
aligns 
definitions 
with 
the 
Maine 
Employment 
Tax 
Increment 
Financing Program, or "ETIF program." 
It updates a statutory reference made obsolete by changes 
made in this amendment. 
It adds the utility benefits enacted by Public Law 2003, 
chapter 610. 
It clarifies the requirement for a business to add a new 
employee, aligns the qualifying criteria with those under the 
Page l3-LR04l6(2) 
COMMITTEE AMENDMENT 
~~". 
COMMITTEE AMENDMENT "A to S.P. 147, L.D. 449 
ETIF program by assigning determination duties to the Department 
of Economic and Community Development and removing Department of 
Administration 
and 
Financial 
Services 
responsibility 
and 
redefines "qualified Pine Tree Development Zone employees" to 
restore the meaning originally used under the ETIF program in 
order to align programs and match past practice. This section 
also clarifies 
the 
status 
of shifted employees 
and 
assigns 
antishifting 
oversight 
to 
the 
Department 
of 
Economic 
and 
Community Development. 
It clarifies that under the 5,000-acre limit, acres need not 
be contiguous and only developable acres may be counted, aligns 
the antipiracy and antishifting provisions by including property 
in both and clarifies the 
language 
regarding antipiracy and 
antishifting if companies move 
from nonqualified to qualified 
activities. 
It also repeals the limitation on the number of 
parcels allowed within a zone, opting instead for a cap on total 
acres. This permits more communities to participate in each zone 
as they respond to development project needs. 
It clarifies that zones were legally constituted when the 
commissioner issued preliminary designations. 
It simplifies the amendment process and clarifies that all 
aspects 
of 
a 
zone's 
development 
program 
may 
be 
amended 
by 
majori ty 
vote 
of 
the 
participating 
municipalities. 
Voting 
responsibilities may be delegated to the zone's governing body. 
It also permits municipalities to independently shift or delete 
acres within their own boundaries and clarifies that amendments 
may not be enacted that jeopardize existing benefits to qualified 
businesses. 
I t 
repeals the sales and use tax exemption for sales to 
contractors 
of 
Pine 
Tree 
Development 
Zone 
businesses 
and 
establishes a reimbursement program under which the contractors 
may recover the tax paid on qualifying purchases. 
It limits eligibility for Pine Tree Development Zone credit 
against 
the 
insurance 
premium 
tax 
to 
years 
from 
the 
commencement of the qualified business activity and clarifies the 
rules regarding apportionment of the credit by companies that 
engage in both qualified and nonqualified activities. 
It limits eligibility for Pine Tree Development Zone credit 
against 
the 
corporate 
income 
tax 
to 
years 
from 
the 
commencement of the qualified business activity and clarifies the 
rules regarding apportionment of the credit by corporations that 
engage in both qualified and nonqualified activities. 
COMMITTEE AMENDMENT 
.. ~ 
~ti;~ 
COMMITTEE AMENDMENT "~to S.P. 147, L.D. 449 
It limits the amount of Pine Tree Development Zone credit 
for 
a 
member of a 
pass-through entity to the amount of tax 
attributable to taxable 
income derived 
from 
the pass-through 
entity. 
It redefines "affiliated business" under the ETIF program to 
match the definition under the Maine Revised Statutes, Title 36, 
Part 8. 
It repeals the definition of "affiliated group" under the 
ETIF program and defines "average employment during the base 
period" for purposes of the ETIF program. Existing law measures 
employment on December 31st of each year. 
This change allows 
measurement of employment at the end of each quarter during the 
year, creating a more accurate employment picture. 
It redefines "base level of employment" for purposes of the 
ETIF program. Existing law measures employment on December 31st 
of 
the 
previous 
year. 
This 
change 
allows 
measurement 
of 
employment at the end of each quarter during the year, creating a 
more accurate employment picture. 
It updates a statute reference made obsolete by the changes 
in this amendment. 
It adds 
a 
limitation to 
the 
ETIF 
program stating that 
"qualified employees" does not include those employees that are 
shifted to a qualified activity from elsewhere in the company or 
from 
an affiliate of the company. 
This limitation currently 
exists in a separate section of law. 
It repeals the section of law that describes the shifting 
limitation for the ETIF program. 
The limitation is moved to 
Title 36, section 6753, subsection 12 in this amendment. 
Finally, it amends the ETIF law to reflect the increase in 
the top percentage of employment tax 
increment available to 
employers for qualified employees in a Pine Tree Development Zone 
tax increment from 75% to 80%. 
FISCAL NOTE REQUIRED 
(See attached) 
Page l5-LR04l6(2) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 05/16/05 ;tv'a-e. 
LD449 
LR 0416(02) 
An Act To Make Changes to the Pine Tree Development Zones 
Fiscal Note for Bill as Amended by Committee Amendment ,A 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Any additional costs to the Department of Economic and Community Development and Maine Revenue Services can 
be absorbed utilizing existing budgeted resources. 
LR0416(2) - Fiscal Note - Page 1 of 1