Section 125-815-2 - Certification of Qualified Dirigo Businesses1.EligibilityTo be certified as a qualified business, a business must be a for-profit business in this State engaged in an eligible sector, or in the case of a new business to the State, will be engaged in an eligible sector when their business activity begins. The business must intend to place eligible business property into service or begin training as part of a qualified worker training program within two years of filing their application for certification. Capital investment or worker training begun prior to the issuance of a letter of certification from the Commissioner will not be eligible for the credit under 36 M.R.S. §5219-AAA(4).
2.Application requirementsA business seeking certification shall electronically submit for the Commissioner's review one original, signed application containing the following information:
A. Information on the business's activity:a. A description of the qualified business activity in which the business will be engaged.b. The addresses of business operations in Maine, including planned new locations, that will be the site of qualified business activities for the Dirigo program. If the business has identified a new location but not yet closed the sale or finalized a lease for the property at the time of application, they may choose to list only the municipality or county instead of the full address of that location.c. The eligible sector or sectors within which the business will perform its qualified business activity.B. Information on the business's investment, training, and overall expansion plans: a. The timeframe of the project(s) the business is undertaking for which it is applying for certification.b. The dollar amount, per year and in total, planned to be expended on the project that is expected to constitute eligible capital investment, as well as any additional project investment that is not expected to be eligible for the credit allowed under 36 M.R.S. §5219-AAA(4);c. Confirmation that the business has reviewed and understands the limitations on eligible business property as described in 36 M.R.S. §5219-AAA.d. A list of any planned qualified training programs, including:i. The number of workers per year planned to be trained by the qualified training program;ii. A description of the type(s) of training provided, including the number of training hours per worker; andiii. A list of the training provider(s) the business intends to use. This may be the specific organization if known at the time of application and/or the category of qualified program as listed in 36 M.R.S. §5219-AAA(1)(P).C. Confirmation that the business meets all eligibility criteria, including that the business: a. Is a for profit business operating or planning to begin operations in Maine;b. Is not a public utility as defined by 35-A M.R.S. §102(13);c. Is not currently certified under the Pine Tree Development Zone or Employment Tax Increment Financing programs;d. Is not currently certified to receive one of the tax credits allowed under 36 M.R.S. §§5219-R R or 5219-Y Y; ande. Has not undergone a layoff in the past two tax years as defined in 36 M.R.S. §§5219-A AA(1)(I). The Department may request the business to provide documentation to support this requirement, including, but not limited to, employment numbers as submitted on Line 1 of state quarterly wage reports (Form ME UC-1 or equivalent).D. General information about the business, including:a. Preferred contact information;b. Information to correctly identify the taxpayer entity, including taxpayer identification number and business structure (e.g., LLC, C-Corp, S-Corp, sole proprietorship);c. Number of employees in Maine at the time of application;d. The name, relationship, and shared ownership percentage of any affiliated businesses operating in Maine.E. Any other information the Department may reasonably require. The information contained in a business's application is confidential to the extent provided by 36 M.R.S. §191(2)(SSS).
Applications may be submitted beginning July 1, 2024.
3.Letter of CertificationThe Commissioner will review and act upon submitted applications for Dirigo Business Incentive certification. Before issuing a letter of certification for a business, the Commissioner will determine that the application is complete, the applicant meets the criteria to be a qualified business engaged in (or will be engaged in) a qualified business activity, and the applicant will engage in eligible capital investment or a qualified worker training program in service of the qualified business activity.
If all criteria have been met, the Commissioner will issue a letter of certification to the qualified business stating:
A. The name of the certified entity, including any affiliated businesses that will be engaged in the qualified business activity.B. The qualified business activity, including:a. A written description of the qualified business activity;b. The eligible sectors within which the business will perform its qualified business activity; andc. The planned location(s) of the qualified business activity.C. The effective date and expiration date of the letter of certification.D. The eligibility requirements for remaining a qualified business and receiving any tax benefits allowed under section 36 M.R.S. §5219-AAA. The letter of certification will be valid for five years beginning with the date it is issued. For example, a letter of certification issued on February 1, 2025, will be valid until February 1, 2030. Letters of certification issued between July 1, 2024, and December 31, 2024, will have an effective start date of January 1, 2025, and an end date of January 1, 2030.
If an application does not meet the criteria to receive a letter of certification, the Commissioner will issue a provisional denial to the applicant with an explanation of the criteria not met. A business may file an appeal with the Department within 30 days of receiving the provisional denial if they believe the denial was issued in error. The appeal must include a response to the explanation included in the provisional denial. The Commissioner will review the appeal and original application and issue either a letter of certification or a final denial.
18-125 C.M.R. ch. 815, § 2