Maine Senate supports Sen. Daughtry bill to extend Pine Tree Development Zone Program

AUGUSTA — On Monday, the Maine Senate voted in favor of a bill from Sen. Mattie Daughtry, D-Brunswick, to extend the Pine Tree Development Zone Program. LD 730, “An Act To Protect Economic Competitiveness in Maine by Extending the End Date for Pine Tree Development Zone Benefits,” received unanimous, bipartisan support. 

“The Pine Tree Development Zone has helped attract much-needed business development and investment to our state. Still, we know the program could use some review, so we know how it can be improved to better support Maine businesses. This bill will give us that opportunity, while extending the good work it’s already doing,” said Sen. Daughtry. “I’m grateful to my colleagues for supporting this bill, and I’m eager to see the good work that comes from its passage.”

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. As amended, 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 it 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 faces further votes in the Legislature.