Section 100-100-1 - Definitions As used in this rule, unless the context otherwise indicates, the following terms have the following meanings:
1.Affiliated Group. "Affiliated group" means a group of two or more legal entities or individuals in which more than 50% of the voting stock of each member corporation or more than 50% of the ownership interest in any non-corporate member is directly or indirectly owned by one or more common owner or owners, either corporate or non-corporate, or by one or more member legal entities or individuals. For purposes of this rule, ownership means actual ownership. 2.Base Level of Employment. Generally, "Base level of employment" means the greater of: a. the total employment in the State of a business as of March 31st, June 30th, September 30th and December 31st of the calendar year immediately preceding the year of the business's application to become a certified Pine Tree Development Zone business divided by 4; or b. the total employment in the State of a business as of March 31st, June 30th, September 30th and December 31st of the three calendar years immediately preceding the year in which the business applies for PTDZ certification divided by 12. Adjustment for Significant Business Expansion. A qualified Pine Tree Development Zone business that has more than one location in the state and creates 250 or more net new jobs in one location may apply for an adjustment of the base level of employment if its total employment in the State is greater than 50% of the number of net new jobs created at the location of expansion and the business has appropriate infrastructure, zoning or other land use regulations as needed. If an adjustment is granted, the base level of employment will be determined on the basis of the location of the significant employment expansion only. The adjustment must be reviewed annually and is not available in any year in which the requirements are not met.
Transfer of Ownership. When there is a change of ownership of a certified business, the existing base level of employment will continue to apply to that business regardless of the number of employees located in this State of the acquiring owner, including any affiliated businesses. The base level of employment may be adjusted when there is a transfer of ownership if the Commissioner determines that:
a. there was a significant risk immediately prior to acquisition by the new owner that the certified business would cease operations due to financial or other hardship beyond the control of that business; or b. the change in ownership is part of an effort to avoid "maintaining" the base employment level or any other PTDZ certification requirements. 3.Base of Operations. "Base of operations" means, for the purposes of a qualified PTDZ business, the place: (1) from which employees typically begin work, or to which employees regularly return to receive instructions, direction and supervision from the qualified business or communication from customers or other persons, to replenish stock or other materials, to repair equipment, or to perform any other function necessary to the exercise of the employee's trade or profession, and(2) where tangible personal property is normally returned for repairs, supplies and storage when it is not in use.4.Certified business. "Certified business" means a qualified PTDZ business that has received a letter of certification from the Department in accordance with 30-A M.R.S. §5250-O, and § 6 of this rule.5.Commissioner. "Commissioner" means the Commissioner of the Maine Department of Economic and Community Development, or the Commissioner's designee.6.Department. "Department" means the Maine Department of Economic and Community Development.7.Dependent care benefits. When used within the context of "income derived from employment" as defined herein, "dependent care benefits" means dependent care expenses paid by the qualified business on behalf of a participating qualified employee for dependent care assistance offered as part of an employee benefit package.8.Earnings. When used within the context of "income derived from employment" as defined herein, "earnings" means base pay paid by the qualified business, plus any overtime, incentives or commissions paid.9.Education benefits. When used within the context of "income derived from employment" as defined herein, "education benefits" means education expenses paid by the qualified business on behalf of a participating qualified employee for education assistance offered as part of an employee benefit package.10.Financial Services. "Financial services" means services provided by an insurance company subject to taxation under Title 36, chapter 357; a financial institution subject to taxation under Title 36, chapter 819; or a mutual fund service provider as defined in Title 36, section 5212, subsection 1, paragraph E.11.Health and welfare benefits. When used within the context of "income derived from employment" as defined herein, "health and welfare benefits" means company-paid contributions to group insurance programs such as health insurance, medical insurance, dental insurance, vision insurance, life insurance, and long-term disability coverage.12.Income derived from employment. "Income derived from employment" means the total value of company-paid benefits and compensation provided by a qualified business to a qualified employee, including earnings, education benefits, retirement benefits, health and welfare benefits, and dependent care benefits. For development projects where a business creates 250 or more jobs within a two-year period in a PTDZ, "income derived from employment" may include other company-paid benefits and company-offered benefits.13.Qualified Business Activity. "Qualified business activity" means a business activity that is conducted within a PTDZ and is directly related to financial services, manufacturing or a targeted technology business for which the business receives a letter of certification from the Commissioner pursuant to 30-A M.R.S. §5250-O. Qualified business activity includes otherwise qualified business activity conducted inside and outside the zone through employees or property whose base of operations is in a PTDZ. Business activity directly related to manufacturing, for example, includes: the production areas, warehouses that receive raw material, administrative offices, quality control labs, maintenance shops, cafeterias for employees, warehouses that hold finished products prior to shipment, employee gyms and locker rooms, and research and development facilities. Business activity directly related to manufacturing does not include property and employees used in a retail facility, even if it were located in the same building where the manufacturing took place, or property used in the above facilities if the location of that property is not in a PTDZ.14.Qualified Pine Tree Development Zone Business. "Qualified Pine Tree Development Zone business" or "qualified business" means any for-profit business in this State engaged in or that will engage in financial services, manufacturing or a targeted technology business that has added or will add at least one qualified PTDZ employee above its base level of employment in this State and that meets the additional criteria set forth in 30-A M.R.S. §5250-I(17).15.Qualified Pine Tree Development Zone Employees. "Qualified Pine Tree Development Zone Employees" has the same meaning as defined in 30-A M.R.S. §5250-I. The term does not include employees shifted to a qualified business activity from a nonqualified activity of the qualified PTDZ business or an affiliated business. The term also does not include employees who primarily work remotely outside of a PTDZ, excepting temporary remote work within the State of Maine due to the effects of a state of emergency as designated by the Governor.16.Retirement benefits. When used within the context of "income derived from employment" as defined herein, "retirement benefits" means company-paid contributions to a retirement program subject to the Employee Retirement Income Security Act of 1974,29 United States Code, Sections 1001 to 1461, as amended. 17.Single Business Enterprise. Single Business Enterprise means, collectively, those members of an affiliated group engaged in segments or portions of a business activity which the Commissioner has determined would be Qualified Business Activity if conducted by a single business. Activities of a member of an affiliated group that are unrelated to the qualified business activity are not qualified business activities of a single business enterprise.18.Tangible personal property. "Tangible personal property" has the same meaning as provided in Title 36, Part 3. Tangible personal property includes personal property that may be seen, weighed, measured, felt, touched or in any other manner perceived by the senses, but does not include rights and credits, insurance policies, bills of exchange, stocks and bonds and similar evidences of indebtedness or ownership. Tangible personal property also includes electricity and any computer software that is not a custom computer software program.19.Targeted Technology Business. "Targeted technology business" means a business primarily involved in a targeted technology as defined in Title 5, section 15301, i.e. biotechnology, aquaculture and marine technology, composite materials technology, environmental technology, advanced technologies for forestry and agriculture, information technology and precision manufacturing technology.20.Tier 1 Location. "Tier 1 Location" means a location so classified by the Department consistent with the requirements set forth in Title 30-A, section 5250-J , subsection 3-A . Tier 1 Locations include: A. Any unit of local government that is contained in a county other than Cumberland County or York County, as well as a unit of local government that is contained in Cumberland County or York County with a municipal unemployment rate that is 15% higher than its labor market unemployment rate, based upon data published by the Maine Department of Labor from the last completed calendar year.B. A unit of local government designated by the Department as a participating municipality in the PTDZ program prior to January 1, 2009.C. Property within a military redevelopment zone classified by the Department as a PTDZ prior to January 1, 2019.21.Tier 2 Location. "Tier 2 Location" means any unit of local government located in Cumberland County or York County that is not classified as a Tier 1 location. A business located in a Tier 2 Location will not be certified after December 31, 2013. 19-100 C.M.R. ch. 100, § 1