Code of Maine Rules › 19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT › 100 - ECONOMIC / COMMUNITY DEVELOPMENT › Chapter 400 - EMPLOYMENT TAX INCREMENT FINANCING › Section 100-400-1 - PURPOSE AND DEFINITIONS

Current through 2024-29, July 17, 2024
A.
PURPOSE
The Employment Tax Increment Financing program is designed
				  to encourage the creation of net new quality jobs in this State, improve and
				  broaden the tax base and improve the general economy of the State. Consistent
				  with the
Maine Employment Tax Increment Financing Act
, 36
				  M.R.S.A. §§
										6751-6762, this chapter sets
				  forth the provisions by which a business may utilize this program, and
				  describes application requirements, state review procedures, state designation
				  procedures, the calculation of employment tax increment, annual reporting
				  requirements, and program administration.
B.
DEFINITIONS
Definitions of many of the terms used in this rule are
				  contained in 36 M.R.S.A. §
										6753. This section also defines
				  certain terms that are used in this rule but that are not defined by Title 36,
				  Chapter 917.
As used in this rule, unless the context otherwise
				  indicates, the following terms have the following meanings:
Act
. "Act" means the
Maine Employment
				  Tax Increment Financing Act
, 36 M.R.S.A. §§
										6751-6762.
Benefit base
. "Benefit base" means the total
				  incremental gross wages paid during the calendar year by a qualified business
				  to qualified employees multiplied by 4.5%.
Commissioner
. "Commissioner" means the
				  Commissioner of the Department of Economic and Community Development.
Dependent care benefits
. When used within the
				  context of "income derived from employment" as defined herein, "dependent care
				  benefits" means dependent care expenses paid by the qualified business on
				  behalf of a participating qualified employee for dependent care assistance
				  offered as part of an employee benefit package.
Earnings
. When used within the context of
				  "income derived from employment" as defined herein, "earnings" means base pay
				  paid by the qualified business, plus any overtime, incentives or commissions
				  paid.
Education benefits
. When used within the context
				  of "income derived from employment" as defined herein, "education benefits"
				  means education expenses paid by the qualified business on behalf of a
				  participating qualified employee for education assistance offered as part of an
				  employee benefit package.
Financial plan
. "Financial plan" means a
				  statement of the costs and sources of revenue required to accomplish the
				  development program. A financial plan shall include a description of facilities
				  to be constructed or modified, equipment to be purchased, employee training
				  requirements, and other significant expenses associated with the
				  project.
Gross wages
. "Gross wages" means taxable wages,
				  tips and other compensation included on the wage and tax statement for services
				  performed in this State during the calendar year.
Health and welfare benefits
. When used within
				  the context of "income derived from employment" as defined herein, "health and
				  welfare benefits" means company-paid contributions to group insurance programs
				  such as health insurance, medical insurance, dental insurance, vision
				  insurance, life insurance, and long-term disability coverage.
Income derived from employment
. "Income derived
				  from employment" means the total value of company-paid benefits and
				  compensation provided by a qualified business to a qualified employee,
				  including earnings, education benefits, retirement benefits, health and welfare
				  benefits, and dependent care benefits. For qualified economic development
				  projects where a business creates 250 or more jobs within a two-year period in
				  a Pine Tree Development Zone, "income derived from employment" may include
				  other company-paid benefits and company-offered benefits.
Qualified economic development project
.
				  "Qualified economic development project" means a definable business investment
				  project that includes capital or other investments, and the creation of net new
				  jobs associated with those investments that are necessary to improve or retain
				  the applicant's market position.
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 U.S.C. §§
											1001-1461, as amended, and group health
				  insurance are provided, and whose income derived from employment with the
				  applicant, calculated on a calendar year basis is greater than the most recent
				  annual per capita personal income in the county in which the qualified employee
				  is employed and whose gross wages are subject to reimbursement to the qualified
				  business under the Act. "Qualified employees" does not include employees
				  shifted from elsewhere in the State to a qualified business from an affiliated
				  business. For employees in call centers in Aroostook and Washington counties,
				  "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
,
29 United Sates Code
, Sections
				  101 to
				  1461, as amended, and group health
				  insurance are provided and whose income derived from employment within the Pine
				  Tree Development Zone, calculated on a weekly basis, is greater than the
				  average weekly wage for the most recent available calendar year as derived from
				  the quarterly census of employment and wages and provided annually by the
				  Department of Labor. The calculation of the average weekly wage must include
				  data from the counties of Androscoggin, Aroostook, Franklin, Hancock, Kennebec,
				  Knox, Lincoln, Oxford, Penobscot, Piscataquis, Sagadahoc, Somerset, Waldo and
				  Washington. Notwithstanding this subsection, with respect to employees in call
				  centers in Aroostook and Washington counties, in a county in which the average
				  annual unemployment rate at the time of certification for the most recent
				  calendar year is greater than the state average for the same year, the wage
				  threshold is 90% of the average weekly wage as derived from the quarterly
				  census of employment and wages. Notwithstanding this subsection, with respect
				  to a call center in Aroostook or Washington county and upon approval of the
				  commissioner, a qualified business located in a county in which the average
				  annual unemployment rate at the time of certification for the most recent
				  calendar year is greater than the state average for that same year qualifies
				  for a phase-in of salary threshold requirements. A qualified business under
				  this provision must meet 70% of the average weekly wage as derived from the
				  quarterly census of employment and wages in the first year of certification,
				  80% of the average weekly wage as derived from the quarterly census of
				  employment and wages in the 2nd year of certification and 90% of the average
				  weekly wage as derived from the quarterly census of employment and wages in all
				  following years of certification. Failure to meet any of these requirements
				  results in automatic revocation of certification. "Qualified Pine Tree
				  Development Zone employees" 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.
Retirement benefits
. When used within the
				  context of "income derived from employment" as defined herein, "retirement
				  benefits" means company-paid contributions to a retirement program subject to
				  the
Employee Retirement Income Security Act of 1974, 29 United States
				  Code
, Sections
				  1001 to
				  1461, as amended.