Maine Revised Statutes Title 36 Sec. 6754 – Reimbursement allowed
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1. Generally. Subject to the provisions of subsection 2, a qualified business is entitled to reimbursement of gross wages paid during the calendar year for which reimbursement is requested and attributed to qualified employees after July 1, 1996 in the following amounts.
A. For qualified employees employed by a qualified business in labor market areas in this State in which the labor market unemployment rate is at or below the State’s unemployment rate at the time of application, the reimbursement is equal to 30% of the benefit base during each of the first 5 calendar years for which reimbursement is requested and attributed to those qualified employees. The percentage of reimbursement for the 6th to 10th years of the employment tax increment financing development program is established based upon the labor market unemployment rate at the beginning of the 6th year. [PL 2021, c. 602, §5 (AMD).]
B. For qualified employees employed by a qualified business in labor market areas in this State in which the labor market unemployment rate is greater than the State’s unemployment rate at the time of application, the reimbursement is equal to 50% of the benefit base during each of the first 5 calendar years for which reimbursement is requested and attributed to those qualified employees. The percentage of reimbursement for the 6th to 10th years of the employment tax increment financing development program is established based upon the labor market unemployment rate at the beginning of the 6th year. [PL 2021, c. 602, §5 (AMD).]
C. For qualified employees employed by a qualified business in labor market areas in this State in which the labor market unemployment rate is greater than 150% of the State’s unemployment rate at the time of application, the reimbursement is equal to 75% of the benefit base during each of the first 5 calendar years for which reimbursement is requested and attributed to those qualified employees. The percentage of reimbursement for the 6th to 10th years of the employment tax increment financing development program is established based upon the labor market unemployment rate at the beginning of the 6th year. [PL 2021, c. 602, §5 (AMD).]
D. For qualified Pine Tree Development Zone employees, as defined in Title 30?A, section 5250?I, subsection 18, employed directly in the qualified business activity of a qualified Pine Tree Development Zone business, as defined in Title 30-A, section 5250?I, subsection 17, for whom a certificate of qualification has been issued in accordance with Title 30-A, section 5250?O, the reimbursement under this subsection is equal to 80% of the benefit base each year for which reimbursement is requested and attributed to those qualified employees for a period of no more than 10 years for a tier 1 location as defined in Title 30-A, section 5250?I, subsection 21?A and no more than 5 years for a tier 2 location as defined in Title 30-A, section 5250?I, subsection 21?B. Reimbursement under this paragraph may not be paid for years beginning after December 31, 2034. [PL 2023, c. 412, Pt. J, §14 (AMD).]
[PL 2023, c. 412, Pt. J, §14 (AMD).]
Terms Used In Maine Revised Statutes Title 36 Sec. 6754
- Benefit base: means the total incremental gross wages paid during the calendar year by a qualified business to qualified employees multiplied by 4. See Maine Revised Statutes Title 36 Sec. 6753
- Bureau: means the Bureau of Revenue Services, which may be referred to as "Maine Revenue Services. See Maine Revised Statutes Title 36 Sec. 111
- Commissioner: means the Commissioner of Economic and Community Development. See Maine Revised Statutes Title 36 Sec. 6753
- employment tax increment: means that level of employment, payroll and state income withholding taxes attributed to qualified employees employed by a qualified business above the base level for the qualified business, adjusted pursuant to subsection 12 for shifts in employment by affiliated businesses. See Maine Revised Statutes Title 36 Sec. 6753
- Employment tax increment financing development program: means a statement describing:
A. See Maine Revised Statutes Title 36 Sec. 6753Gross 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. See Maine Revised Statutes Title 36 Sec. 6753 Labor market unemployment rate: means the average unemployment rate as published by the Department of Labor for the labor market or markets in which potential qualified employees are located and in which reimbursement is claimed under this chapter for the 12 most recently reported months preceding the date of application for employment tax increment financing and for the 12 most recently reported months preceding the beginning of the 6th year of an approved employment tax increment financing development program. See Maine Revised Statutes Title 36 Sec. 6753 Qualified business: means any for-profit business in this State, other than a public utility as defined by Title 35?A, section 102, that adds 5 or more qualified employees above its base level of employment in this State within any 2-year period commencing on or after January 1, 1996 and that meets one of the following criteria:
A. See Maine Revised Statutes Title 36 Sec. 6753Tax: means the total amount required to be paid, withheld and paid over or collected and paid over with respect to estimated or actual tax liability under this Title, any credit or reimbursement allowed or paid pursuant to this Title that is recoverable by the assessor and any amount assessed by the assessor pursuant to this Title, including any interest or penalties provided by law. See Maine Revised Statutes Title 36 Sec. 111 United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72 Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
2. Limitations. Reimbursement to a qualified business under this chapter is subject to the following limitations.
A. A business previously qualified and approved by the commissioner may not receive reimbursement under this chapter for any period of time in which it failed to maintain the minimum requirements for initial approval as a qualified business. [PL 1995, c. 669, §5 (NEW).]
B. Reimbursement to a qualified business approved pursuant to this chapter expires 10 years after the date on which benefits commenced under the employment tax increment financing development program. [PL 1999, c. 388, §4 (AMD).]
C. A business electing to take the jobs and investment tax credit under section 5215 may not claim reimbursement under this chapter until the full amount of allowable jobs and investment tax credit benefits have been claimed. This limitation does not apply to claims for reimbursement of withholding for qualified Pine Tree Development Zone employees as defined in Title 30?A, section 5250?I, subsection 18, if those employees and any investment in the related Pine Tree Development Zone are not included in calculating the jobs and investment tax credit under section 5215. [PL 2005, c. 622, §32 (AMD); PL 2005, c. 622, §33 (AFF).]
D. [PL 2017, c. 170, Pt. E, §9 (RP).]
E. Employee payroll withholding amounts are limited to the standard amount required to be withheld pursuant to chapter 827 and may not include any excess withholding. [PL 1995, c. 669, §5 (NEW).]
F. The aggregate annual retained employment tax increment revenues for all employment tax increment financing programs may not exceed $20,000,000, adjusted by a factor equal to the percentage change in the United States Bureau of Labor Statistics Consumer Price Index, United States City Average, from January 1, 1996 to the date of calculation. [PL 1995, c. 669, §5 (NEW).]
[PL 2017, c. 170, Pt. E, §9 (AMD).]
3. Multiple labor market areas. The commissioner may by rule establish procedures for equitably apportioning reimbursement to a qualified business employing qualified employees in multiple labor market areas in the State.
[PL 1995, c. 669, §5 (NEW).]
SECTION HISTORY
PL 1995, c. 669, §5 (NEW). PL 1997, c. 766, §§3,4 (AMD). PL 1999, c. 388, §4 (AMD). PL 2001, c. 669, §4 (AMD). PL 2003, c. 451, §NNN6 (AMD). PL 2003, c. 451, §NNN8 (AFF). PL 2003, c. 688, §D6 (AMD). PL 2005, c. 622, §32 (AMD). PL 2005, c. 622, §33 (AFF). PL 2009, c. 434, §83 (AMD). PL 2009, c. 461, §27 (AMD). PL 2009, c. 496, §29 (AMD). PL 2011, c. 240, §44 (AMD). PL 2017, c. 170, Pt. E, §9 (AMD). PL 2017, c. 440, §13 (AMD). PL 2021, c. 398, Pt. IIII, §7 (AMD). PL 2021, c. 602, §5 (AMD). PL 2023, c. 412, Pt. J, §14 (AMD).