19-100-400 Me. Code R. § 4

Current through 2024-44, October 30, 2024

Section 100-400-4 - CALCULATIONS

A.CALCULATION OF EMPLOYMENT TAX INCREMENT

The Commissioner shall:

1. Ensure that the qualified business has hired 5 qualified employees within the first two calendar years of approving a qualified economic development project and shall calculate a tentative employment tax increment once this threshold is met in year one or year two. If a previously qualified business fails to hire the 5 qualified employees within the first two calendar years of becoming certified or has any two consecutive calendar years where the hiring of 5 or more qualified employees is not achieved, the Commissioner shall terminate approval of the qualified economic development project. Any qualified business so terminated may re-apply for employment tax increment financing.

2. Calculate the tentative employment tax increment by first reviewing the employment and payroll data for all affiliated businesses at the time of application and in the annual reports provided by qualified businesses to determine whether any shifting of employees has occurred, and then removing from the gross employment tax increment any gross wages attributed to employees shifted from affiliated businesses to the qualified business.

3. On or before May 15th of each year, forward the tentative employment tax increment information for all qualified businesses to the State Tax Assessor.

B.DETERMINATION OF REIMBURSEMENT PERCENTAGE FOR 2 FIVE YEAR PERIODS

Upon the successful review and as part of the approval of an application for Employment Tax Increment Financing, the Commissioner will establish the percentage of reimbursement to the qualified business that will be in effect for each of the first 5 calendar years beginning with the calendar year of application, using the most recently available Maine Department of Labor data at the time of application, and the Commissioner will establish the percentage of reimbursement to the qualified business for the 6th to 10th years using the most recently available Maine Department of Labor data at the beginning of the sixth year, as follows:

1. For qualified employment where the labor market unemployment rate is less than or equal to the State unemployment rate, the percentage of reimbursement will be 30% of benefit base.

2. For qualified employment where the labor market unemployment rate is greater than the State unemployment rate, the percentage or reimbursement will be 50% of the benefit base.

3. For qualified employment where the labor market unemployment rate is greater than 150% of the State unemployment rate, the percentage or reimbursement will be 75% of the benefit base.

C.ESTABLISHMENT OF PINE TREE DEVELOPMENT ZONE REIMBURSEMENT PERCENTAGE FOR UP TO TEN-YEAR PERIOD

Within Pine Tree Development Zones, upon the successful review and as part of the approval of an application for Employment Tax Increment Financing, the Commissioner will authorize the percentage of reimbursement to the qualified Pine Tree Development Zone business that will be in effect for a period of no more than 10 years, as follows:

1. For qualified employment, the percentage of reimbursement will be 80% of the benefit base. In no event may reimbursement under this subsection be provided for any calendar years beginning after December 31, 2033.

D.MULTIPLE LABOR MARKET AREAS

A qualified business may employ qualified employees in multiple labor market areas in the State. In those instances, the application process in Section 2(B) of this rule must be followed. A separate reimbursement rate will be established for each labor market area and the qualified business must prepare reimbursement requests for each area. A combined reimbursement request that summarizes job creation for all labor market areas may be filed per Section 5 of this rule.

The reimbursement rate for a qualified employee pursuant to this subsection will be determined by their primary physical work location, whether a company-owned facility or office, home office, co-working space, or other remote work location. The reimbursement rate for a qualified employee who temporarily works remotely or from a new location within the State of Maine due to the effects of a state of emergency designated by the Governor will remain equal to the reimbursement rate of the qualified employee's primary work location prior to the emergency.

19-100 C.M.R. ch. 400, § 4