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The Finance Authority of Maine voted Thursday to ban the use of “one-day loans” to qualify for economic development incentives under the state’s New Markets Tax Credit program, two months after putting an emergency rule in place halting the practice.
The Bangor Daily News reported Thursday that the state finance authority’s board approved the new rule.
A Maine Sunday Telegram investigation published in April highlighted the use of one-day loans in the New Markets Tax Credit program, focusing on a deal by Great Northern Paper mill’s investors, Cate Street Capital.
The investigation showed that the East Millinocket paper mill’s investors inflated the value of their investment with a $31.8 million one-day loan and another $8.2 million that was used to pay old debts. The structuring of that finance deal allowed the investors to receive nearly $16 million in tax credits, even though none of the $40 million used to qualify was put into capital improvements at the mill.
FAME CEO Bruce Wagner told the BDN in August that the Cate Street Capital deal would not be allowed under the new rule.
Read more
Cate Street, GNP owe taxes, seek tax break
Millinocket reduces tax debt to help Cate Street’s pellet plant project
Contractor files $3.85M lien against Cate Street
Report: Most of GNP's $40M investment a 'mirage'
Lawmakers seek changes to tax-credits program
Cate Street appeals $9M order over gas contract
Cate Street Capital to back hydroponic project at St. Joseph's College
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Learn moreThe Giving Guide helps nonprofits have the opportunity to showcase and differentiate their organizations so that businesses better understand how they can contribute to a nonprofit’s mission and work.
Work for ME is a workforce development tool to help Maine’s employers target Maine’s emerging workforce. Work for ME highlights each industry, its impact on Maine’s economy, the jobs available to entry-level workers, the training and education needed to get a career started.
Few people are adequately prepared for all the tasks involved in planning and providing care for aging family members. SeniorSmart provides an essential road map for navigating the process. This resource guide explores the myriad of care options and offers essential information on topics ranging from self-care to legal and financial preparedness.
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