An Act To Extend the Date for a Business in a Tier 2 Location To Qualify for Pine Tree Development Zone Benefits
Maine Legislature, Session 126, LD 1633
Committee Amendment CA_A_S403 (Senate)
Amends: 30-A MRSA §5250-I, 30-A MRSA §5250-J, 36 MRSA §2016, 36 MRSA §2529, 36 MRSA §5219-W

COMMITTEE AMENDMENT "A" to S.P. 624, L.D. 1633, Bill, "An Act To 
Extend the Date for a Business in a Tier 2 Location To Qualify for Pine Tree 
Development Zone Benefits" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Amend the Laws Governing Pine Tree Development Zones' 
Amend the bill by striking out all of section I and inserting the following: 
'Sec. 1. 30-A MRSA §5250-I, sub-§21-C is enacted to read: 
21-C. Tier 3 location. "Tier 3 location" means a location in Washington County or 
Aroostook County designated by the department after December 31, 2014 to be eligible 
for Pine Tree Development Zone benefits for a period of 10 years. 
Sec. 2. 30-A MRSA §5250-J, sub-§3-A, as amended by PL 2009, c. 652, Pt. D, 
§ 1 and affected by §2, is further amended to read: 
3-A. Pine Tree Development Zone classification; tier 1 locations. Beginning 
January 1, 2009, the department shall classify the following on an annual basis as tier 1 
locations: 
A. From January 1, 2009 to December 31,2009, all units oflocal government; 
B. Beginning January 1, 2010, a unit of local government that is contained in a 
county other than Cumberland County or York County, as well as a unit of local 
government that is contained in Cumberland County or York County with a 
municipal unemployment rate that is 15% higher than its labor market unemployment 
rate, based upon data published by the Department of Labor from the last completed 
calendar year; 
C. 
A unit of local government that has been designated by the department as a 
participating municipality in the Pine Tree Development Zone program as of 
December 31, 2008; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 624, L.D. 1633 
D. Property within a military redevelopment zone as long as the property is classified 
by the department no later than December 31, 2018; and 
E. Washington County and the Downeast region, including 2 pilot projects to be 
established by the commissioner: 
(1) A pilot project for the property of the former Cutler naval computer and 
telecommunications station, which may be excluded from the qualified business 
definitions established under section 5250-1, subsections 16 and 17 if a for-profit 
business is engaged in, or will engage in, tourism development including 
recreational tourism, experiential tourism, hotel development and resort facility 
development; and 
(2) A pilot project that allows seasonal employees in seasonal industries based 
on natural resources to be considered qualified Pine Tree Development Zone 
employees for the purposes of section 5250-1, subsection 18. 
Notwithstanding anything to the contrary in this subsection, beginning January 1, 2015, 
units of local government in Aroostook County or Washington County may not be 
classified as tier 1 locations. 
Sec. 3. 30-A MRSA §S2S0-J, sub-§3-C is enacted to read: 
3-C. Pine Tree Development Zone classification; tier 3 locations. Beginning 
January 1, 2015, the department shall classity all units of local government in Aroostook 
County and Washington County as tier 3 locations. 
Sec. 4. 30-A MRSA §S2S0-J, sub-§S, as repealed and replaced by PL 2009, c. 
461, §22, is amended to read: 
S. Termination. A qualified Pine Tree Development Zone business located in a tier 
location may not be certified under this subchapter after December 31, 2018, and a 
qualified Pine Tree Development Zone business located in a tier 2 location may not be 
certified under this subchapter after December 31, 2013. All Pine Tree Development 
Zone benefits provided under this subchapter are terminated on December 31,2028. 
Sec. 5. 36 MRS A §1760, sub-§87, as amended by PL 2011, c. 285, §5, is further 
amended to read: 
87. Sales of tangible personal property and transmission and distribution of 
electricity to qualified development zone businesses. Beginning July 1, 2005, sales of 
tangible personal property, and of the transmission and distribution of electricity, 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 in the case of a business located in a tier 1 location 
or a tier 3 location, as defined in Title 30-A, section 5250-1, subsection subsections 21-A 
and 21-C, respectively, and 5 years in the case of a business located in a tier 2 location, as 
defined in Title 30-A, section 5250-1, subsection 21-B, from the date the business is 
certified pursuant to Title 30-A, section 5250-0 or until December 31, 2028, whichever 
occurs first. As used in this subsection, "primarily" means more than 50% of the time 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 624, L.D. 1633 
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. 
Sec. 6. 36 MRSA §2016, sub-§4, ~A, as amended by PL 2009, c. 627, §7 and 
affected by § 12, is further amended to read: 
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 10 years in the case of a qualified Pine Tree Development Zone business located in 
a tier 1 location or a tier 3 location, as defined in Title 30-A, section 5250-1, 
subsection subsections 21-A and 21-C, respectively, and 5 years in the case of a 
qualified Pine Tree Development Zone business located in a tier 2 location, as 
defined in Title 30-A, section 5250-1, subsection 21-B, from the date the qualified 
Pine Tree Development Zone business receiving the property is certified pursuant to 
Title 30-A, section 5250-0 or by December 31, 2028, whichever occurs first. 
Sec. 7. 36 MRSA §2529, sub-§l, ~B, as amended by PL 2009, c. 627, §8 and 
affected by § 12, is further amended to read: 
B. 
For a business located in a tier 1 location or a tier 3 location, as defined in Title 
30-A, section 5250-1, subsection subsections 21-A and 21-C, respectively, 50% 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, section 5250-1, 
subsection 16 for each of the 5 tax years following the time period in paragraph A. 
Sec. 8. 36 MRSA §5219-W, sub-§l, ~, as amended by PL 2009, c. 627, § 10 
and affected by § 12, is further amended to read: 
B. 
For a business located in a tier I location or a tier 3 location, as defined in Title 
30-A, section 5250-1, subsection subsections 21-A and 21-C, respectively, 50% 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. 9. 36 MRS A §6754, sub-§l, ,n, as amended by PL 2011, c. 240, §44, is 
repealed and the following enacted in its place: 
D. For qualified Pine Tree Development Zone employees, as defined in Title 30-A, 
section 5250-1, subsection IS, employed directly in the qualified business activity of 
a qualified Pine Tree Development Zone business, as defined in Title 30-A, section 
5250-1, subsection 17, for whom a certificate of qualification has been issued in 
accordance with Title 30-A, section 5250-0, the reimbursement under this subsection 
is equal to: 
(1) For a period of no more than 10 years, 80% of Maine income tax withheld 
each year for which reimbursement is requested and attributed to those qualified 
employees of a qualified Pine Tree Development Zone business located in a tier 1 
location as defined in Title 30-A, section 5250-1, subsection 21-A; 
(2) For a period of no more than 5 years, SO% of Maine income tax withheld 
each year for which reimbursement is requested and attributed to those qualified 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" An to S.P. 624, L.D. 1633 
employees of a qualified Pine Tree Development Zone business located in a tier 2 
location as defined in Title 30-A, section 5250-I, subsection 2I-B; or 
(3) For a period of no more than 10 years, 100% of Maine income tax withheld 
each year for which reimbursement is requested and attributed to those qualified 
employees of a qualified Pine Tree Development Zone business located in a tier 3 
location as defined in Title 30-A, section 5250-I, subsection 2I-C. 
Reimbursement under this paragraph may not be paid for years beginning after 
December 31, 2028.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment is the minority report of the committee. Beginning January 1,2015, 
it establishes a new tier 3 Pine Tree Development Zone classification for all units of local 
govemment in Aroostook County and Washington County. It provides for Pine Tree 
Development Zone benefits and expanded employment tax increment financing benefits 
for businesses located in a tier 3 location. It removes the units of local govemment in 
Aroostook County and Washington County from eligibility for designation as a tier 1 
location. 
It extends until December 31, 2018 the ability of a qualified Pine Tree Development 
Zone business in any tier location to be certified to receive Pine Tree Development Zone 
benefits until the benefits are terminated on December 31, 2028. Currently the expiration 
for certification for businesses in a tier 2 location is December 31, 2013. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/26114 
frOc:.. 
LD 1633 
LR 2439(02) 
An Act To Extend the Date for a Business in a Tier 2 Location To Qualify for Pine Tree Development 
Zone Benefits 
Fiscal Note for Bill as Amended by Committee Amendment ':-&;' (S-'Q03 \ 
Committee: Labor, Commerce, Research and Economic Development 
-:J 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
$0 
$0 
$0 
FY 2014-15 
$0 
$0 
$0 
Projections 
FY 2015-16 
$534,375 
($534,375) 
($28,125) 
Projections 
FY 2016-17 
$1,027,187 
($1,027,187) 
($54,063) 
This bill establishes a new Tier 3 Pine Tree Development Zone and extends the sunset date for new Tier 2 Zone 
certifications. These provisions would result in a loss of General Fund and Local Government Fund revenue of 
$534,375 and $28,125 in fiscal year 2015-16 and $1,027,187 and $54,063 in fiscal year 2016-17, respectively. 
Additional costs to the Department of Economic and Community Development associated with the certification 
process can be absorbed within existing budgeted resources. 
T ,R2439(o2) - Fiscal Note - Page 1 of 1