19-100-400 Me. Code R. § 1
The Employment Tax Increment Financing program is designed to encourage the creation of net new quality jobs in this State, improve and broaden the tax base and improve the general economy of the State. Consistent with the Maine Employment Tax Increment Financing Act, 36 M.R.S.A. §§6751-6762, this chapter sets forth the provisions by which a business may utilize this program, and describes application requirements, state review procedures, state designation procedures, the calculation of employment tax increment, annual reporting requirements, and program administration.
Definitions of many of the terms used in this rule are contained in 36 M.R.S.A. §6753. This section also defines certain terms that are used in this rule but that are not defined by Title 36, Chapter 917.
As used in this rule, unless the context otherwise indicates, the following terms have the following meanings:
Act. "Act" means the Maine Employment Tax Increment Financing Act, 36 M.R.S.A. §§6751-6762.
Benefit base. "Benefit base" means the total incremental gross wages paid during the calendar year by a qualified business to qualified employees multiplied by 4.5%.
Commissioner. "Commissioner" means the Commissioner of the Department of Economic and Community Development.
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.
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.
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.
Financial plan. "Financial plan" means a statement of the costs and sources of revenue required to accomplish the development program. A financial plan shall include a description of facilities to be constructed or modified, equipment to be purchased, employee training requirements, and other significant expenses associated with the project.
Gross wages. "Gross wages" means taxable wages, tips and other compensation included on the wage and tax statement for services performed in this State during the calendar year.
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.
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 qualified economic development projects where a business creates 250 or more jobs within a two-year period in a Pine Tree Development Zone, "income derived from employment" may include other company-paid benefits and company-offered benefits.
Qualified economic development project. "Qualified economic development project" means a definable business investment project that includes capital or other investments, and the creation of net new jobs associated with those investments that are necessary to improve or retain the applicant's market position.
Qualified employees. "Qualified employees" means new, full-time employees hired in this State by a qualified business and for whom a retirement program subject to the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001-1461, as amended, and group health insurance are provided, and whose income derived from employment with the applicant, calculated on a calendar year basis is greater than the most recent annual per capita personal income in the county in which the qualified employee is employed and whose gross wages are subject to reimbursement to the qualified business under the Act. "Qualified employees" does not include employees shifted from elsewhere in the State to a qualified business from an affiliated business. For employees in call centers in Aroostook and Washington counties, "qualified Pine Tree Development Zone employees' means new, full-time employees hired in this State by a qualified Pine Tree Development Zone business for work directly in one or more qualified business activities for whom a retirement program subject to the Employee Retirement Income Security Act of 1974, 29 United Sates Code, Sections 101 to 1461, as amended, and group health insurance are provided and whose income derived from employment within the Pine Tree Development Zone, calculated on a weekly basis, is greater than the average weekly wage for the most recent available calendar year as derived from the quarterly census of employment and wages and provided annually by the Department of Labor. The calculation of the average weekly wage must include data from the counties of Androscoggin, Aroostook, Franklin, Hancock, Kennebec, Knox, Lincoln, Oxford, Penobscot, Piscataquis, Sagadahoc, Somerset, Waldo and Washington. Notwithstanding this subsection, with respect to employees in call centers in Aroostook and Washington counties, in a county in which the average annual unemployment rate at the time of certification for the most recent calendar year is greater than the state average for the same year, the wage threshold is 90% of the average weekly wage as derived from the quarterly census of employment and wages. Notwithstanding this subsection, with respect to a call center in Aroostook or Washington county and upon approval of the commissioner, a qualified business located in a county in which the average annual unemployment rate at the time of certification for the most recent calendar year is greater than the state average for that same year qualifies for a phase-in of salary threshold requirements. A qualified business under this provision must meet 70% of the average weekly wage as derived from the quarterly census of employment and wages in the first year of certification, 80% of the average weekly wage as derived from the quarterly census of employment and wages in the 2nd year of certification and 90% of the average weekly wage as derived from the quarterly census of employment and wages in all following years of certification. Failure to meet any of these requirements results in automatic revocation of certification. "Qualified Pine Tree Development Zone employees" does not include employees shifted to a qualified business activity from a nonqualified activity of the qualified Pine Tree Development Zone business or an affiliated business. The commissioner shall determine whether a shifting of employees has occurred.
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.
19-100 C.M.R. ch. 400, § 1