19-100-100 Me. Code R. § 2

Current through 2024-51, December 18, 2024

Section 100-100-2 - Certification of Qualified PTDZ Businesses

Summary: This section establishes the certification process and establishes requirements for applications for certification as a qualified PTDZ business pursuant to 30-A M.R.S. §5250(O).

1.Eligibility

In general, to be certified, a business must be engaged in a qualified business activity as defined above and must intend to hire at least one qualified employee above its base level of employment to work directly in one or more qualified business activities. A business establishing or expanding operations in a PTDZ must be certified by the Commissioner as a Qualified PTDZ business prior to applying for, or receiving PTDZ benefits through any agency or other source.

2.Application Requirements

A business seeking certification shall submit for the Commissioner's review one original, signed application that satisfies the requirements of this section. The application must be received by December 31^st of the calendar year for which approval is sought. Certification under this section fulfills the application requirements for, and approval of, Employment Tax Increment Financing (ETIF) benefits for the business under 36 M.R.S. Chapter 917.

A business applying for certification as a qualified PTDZ business must submit a signed, notarized statement describing the basis under which it has determined that the proposed business establishment or expansion would not go forward absent the benefits provided by the PTDZ program. The statement must be included within the text of the But For letter submitted in advance of filing the application for certification, or it may be included with the application. In no case, will an application for PTDZ certification be reviewed absent the required notarized statement.

An application for certification as a qualified PTDZ business shall contain the following information for the applicant business, as well as certain base level information for any affiliated business within the state:

A. Descriptive data for the proposed development project, including a summary of the qualified business activity, and:

(1) A description of the existing business in Maine, its products and/or services and history of operation;

(2) A description of the qualified business operations or activities that will be conducted within the PTDZ, a description of the non-qualified business activities, if any, that will be conducted within the PTDZ, and a description of the employees, positions, and property, if any, that will be transferred from an affiliate or a non-qualified business activity to a qualified business activity;

(3) A description of the market(s) and/or competitive environment in which the business operates or expects to operate; and

(4) A description of the business operations that will be established or expanded, including employment expansion and investment plans, for the qualified business within a PTDZ within the two-year period beginning on the date of certification, including:

a. Real property to be constructed or modified and its cost;

b. Tangible personal property to be purchased and its estimated cost;

c. Employee training required;

d. Qualified employees to be hired, and their annual payroll and ETIF reimbursement estimates; and

e. Any other employees to be hired, and their estimated annual payroll;

B. Base level data for the applicant business:

(1) Complete employment/payroll data, including the total number of employees at the end of each calendar quarter for the three calendar years immediately preceding the year of application;

(2) Total payroll of the business within the state for each of the three calendar years preceding its application;

(3) Total Maine state income taxes withheld for employees of the business for each of the three calendar years preceding its application;

(4) All company locations in Maine, including street and municipality;

C. If not previously submitted, a signed, notarized statement describing the basis under which the applicant has determined that the proposed business establishment or expansion would not go forward absent the benefits provided by the PTDZ program; and D. Written attestation that qualified employees employed, or to be employed, at the location for which the business received its PTDZ certification will be:

(1) Paid an income derived from employment that, when calculated on a calendar year basis, exceeds the annual per capita personal income in the county in which employed;

(2) Offered participation in a retirement program subject to the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001- 1461; and

(3) Offered participation in a group health insurance plan;

E. Base level data for any affiliated business or group, including:

(1) Name and location of affiliate business or group; and

(2) Total employment at year end, annual payroll and related income tax withholdings of affiliate business or group.

F. Applications must be signed by an authorized official of the applicant business certifying that the applicant will not seek PTDZ tax benefits for any existing property, employees or positions transferred to the qualified PTDZ business activity described on the letter of certification from an affiliate business or from any nonqualified activity.

G. Any other information as determined necessary by the Department.

3.Review by Commissioner

Applications for certification of qualified PTDZ businesses will be reviewed and acted upon by the Commissioner, subject to the following provisions:

A. Information contained within completed applications must be current as of the application date;

B. Prior to issuing a letter of certification, the Commissioner must determine that:

(1) The application is complete;

(2) The business is a for-profit business engaged, or to be engaged, in financial services, manufacturing or targeted technology qualified business activities within a PTDZ, as each such business category is defined in 30-A M.R.S. §5250-I;

(3) The business has added, or will add one or more qualified employees above its base level of employment; and

(4) The business establishment or expansion would not go forward but for the benefits available within the PTDZ Program.

(5) The business activity will not result in a substantial detriment to existing businesses in the State.

D. The Commissioner will make the final determination whether an affiliated group constitutes a single business enterprise.

E. Upon review of the application, the Commissioner will either certify the business or deny the request as follows:

(1) Issue a letter of certification to the applicant business that includes: the determination that the business is a qualified PTDZ business, the base level of employment, a description of the qualified business establishment or expansion activities to be undertaken by the business and eligible for support from the PTDZ benefits, the location of such activity, and notice that the term of participation in program benefits may not exceed ten years; and

(2) Issue a Certificate of Qualification to the certified PTDZ business upon verification that at least one qualified net new employee has been added above the base level of employment; or

(3) Notify the applicant that the business cannot be certified as a qualified PTDZ business, including a brief explanation for such determination. An applicant may request, within 10 days of the date of receipt of the notice, that the Commissioner reconsider the decision to deny certification.

19-100 C.M.R. ch. 100, § 2