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Has state incentive run its course?
The Pine Tree Development Zone program was created by the Legislature in 2003 to give state income tax credits and sales tax exemptions to Maine businesses that create jobs with higher-than-average wages in certain industries. A February public hearing about renewing PTDZ drew supporters like the Maine State Chamber, which said it's meeting the goal of creating jobs. Detractors over the years, however, have said the program hasn't contribute meaningfully to job creation and economic development.
Sponsored by: GoNetspeed, a fiber internet provider
Has state incentive run its course?
The Pine Tree Development Zone program was created by the Legislature in 2003 to give state income tax credits and sales tax exemptions to Maine businesses that create jobs with higher-than-average wages in certain industries. A February public hearing about renewing PTDZ drew supporters like the Maine State Chamber, which said it's meeting the goal of creating jobs. Detractors over the years, however, have said the program hasn't contribute meaningfully to job creation and economic development.
Other than the seven full-time staff members that the PTDZ employs, there is not much benefit. If the state would treat businesses better, instead of treating us like the enemy and an endless piggy bank, Maine might start attracting new businesses.
Maine over governs across the board which has gotten notably worse under Mills and the Democratic state congress. Cut the programs and give business less cost to self influence investment. I pay my restaurant employees twice minimum wage to get and keep good talent. Enough government intervention.
The Pine Tree Zone program was a bad idea from the start, but it was also a campaign promise. It is only worthwhile if it makes a positive difference in business investment decisions, and that has not been proven. A stable, predictable tax and cost environment is far more impactful than incentives, which are not especially stable and predictable, and therefore are only marginally impactful, if at all.
The 3 choices you provide are likely to generate limited, if not inaccurate, conclusions. The PTDZ program, as designed, provides short-term benefits and encourages long-term thinking and rewards. Not many programs I've experienced or evaluated do both.
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Simon West
The Maine State Chamber supports the renewal of the Pine Tree Development Zone program. The program helps businesses stay competitive, encourages investment in Maine, gives Maine businesses the stable tax policy they need, and is one of the only economic development tools Maine has. Between 2018-2020, participating companies employed over 24,000 people in Maine each year, and cumulatively provided over $4.3 billion in wages and invested over $1.1 billion right here in Maine.