File photo / Maureen Milliken
Jim Dinkle is excutive director of the Kennebec Regional Development Authority, which owns FirstPark in Oakland.
Updated: August 14, 2024
Commentary: Maine business boom will yield long-term growth
By Jim Dinkle, FirstPark
If Maine’s economy is anything, it is resilient. Not only has the state economy bounced back from the COVID-19 pandemic, but Mainers are eyeing new opportunities for business expansion and job creation.
Consider the state’s business community, which I am proud to support as executive director of FirstPark, a business park in Oakland. Last year, Maine saw just over 14,000 business applications — an 8% increase from the year before and the highest on record dating back to 2005.
New business activity in forestry, life sciences and the tourism industry registered a notable uptick, especially in Androscoggin and Sagadahoc counties.
According to Patrick Woodcock, president of the Maine State Chamber of Commerce, “A lot of new businesses are small, that's the lifeblood of the state.”
You can say that again.
Our state is home to nearly 150,000 small businesses — 99.2% of all businesses. And they employ more than 291,000 workers — over half of the state workforce. When small businesses succeed, so does Maine’s entire economy. Emerging industries like artificial intelligence are all the more promising.
Remember: Business activity begets more business activity. What seems like a mom-and-pop diner is actually more impactful than you may think, since that single business relies on other businesses to serve customers — from cleaning services to food and beverage companies. The ancillary impact of one business cannot be overstated.
And so, how do we build on our success as a pro-business state? There are many answers to that question, but we cannot forget the importance of incentives. Entrepreneurs need incentives to succeed in a competitive world.
With that in mind, the Maine Department of Economic and Community Development is now offering Dirigo Business Incentives to make it easier for companies to thrive, and it is the right move.
Whether they are startups or established companies, businesses can apply for Dirigo Business Incentives by contacting DECD, which provides a straightforward, rolling application process. Credits are available every year that a business has eligible investment and training, and there is no sunset. DECD is accepting applications now for projects that start in 2025 or later.
What’s the purpose? The Dirigo Business Incentives program offers eligible businesses the opportunity to greatly reduce state taxes for up to five years when they make significant capital investments or provide qualified employee training in certain business sectors. This translates to a 10% capital investment credit (5% in some counties) or $2,000 per worker trained, incentivizing businesses of all sizes to grow and hire.
As an additional benefit, the credit is refundable for up to $500,000 annually. From agriculture to engineering and manufacturing, numerous economic sectors are eligible, benefitting the economy in various ways.
And this is just one example. To its credit, the state government has long supported small businesses, and the Dirigo Business Incentives program is another reminder that Mainers have their priorities straight.
Business parks like FirstPark are not only competing with each other to attract businesses, but we are also competing with other states and even other countries. If Maine cannot treat its entrepreneurs well, other states will. Some businesses may even relocate outside of the U.S., in search of better benefits abroad.
The success of Maine’s business community is no given, and we always have to make the case for the Maine way of life above all else. Startups and established companies are looking for the best possible location that delivers the highest return on investment, as well as attractive perks for employees.
Because today’s marketplace is so competitive, every incentive program counts. Fortunately, Maine has a lot to offer in that regard.
Let’s keep the Maine business boom going. There is plenty to celebrate about the latest data on business applications, but Mainers must continue to support businesses as they grow and hire. On day one and everyday, there is no better time to be “pro-business” than now.
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