Committee unanimously approves Sen. Daughtry bill to extend the Pine Tree Development Zone Program

Posted: May 07, 2021 | Innovation, Development, Economic Advancement and Business, Senator Daughtry

AUGUSTA — On Thursday, a bill from Sen. Mattie Daughtry, D-Brunswick, to extend the Pine Tree Development Zone Program received approval from the Legislature’s Innovation, Development, Economic Advancement and Business Committee. LD 730, “An Act To Protect Economic Competitiveness in Maine by Extending the End Date for Pine Tree Development Zone Benefits,” received a unanimous, bipartisan vote of support from members present. 

Sen. Mattie Daughtry

“The Pine Tree Development Zone Program supports both our businesses that are already here in Maine and attracts new businesses to our communities. These industries are vital for supporting our local economy and building out our statewide capacity in these sectors. They also provide good-paying jobs, allowing people of all ages the opportunity to live, work and raise a family here,” said Sen. Daughtry. “As one of the only comprehensive development programs here in Maine that directly support our businesses and workers, I believe that we must continue to support this program.”

The Pine Tree Development Zones (PTDZ) Program offers 10-year state income tax credits and sales tax exemptions to businesses that create new, quality jobs in certain industries, or move existing jobs in those industries to Maine. The Pine Tree Development Zone Program was set to expire at the end of this year in 2021. LD 730 would extend the program to 2024, with benefits being extended to 2034.

The Department of Economic and Community Development (DECD) is currently reviewing Maine’s tax incentive programs to make sure they are being used effectively.

“The PTDZ program is important to the State but there are opportunities to improve and better incorporate into the economic development strategy. This legislation would allow for an extension of the Pine Tree Program which creates a stable and predictable landscape for the business community and enable the department to engage in a review,” said Charlotte Mace, director of the Office of Business Development for DECD, in testimony supporting the bill.

The Maine Forest Products Council also testified in favor of the bill.

LD 730 now faces votes in the Maine Senate and House.