Tax Incentives

Resources

Business Equipment Tax Exemption Program

The Business Equipment Tax Exemption program eliminates the personal property tax on eligible business equipment that is first subject to assessment on or after April 1, 2007. (This program has largely replaced the Business Equipment Tax Reimbursement Program and helps businesses avoid paying assessed taxes up front, rather than waiting and filing for a reimbursement, with no time limit to the exemption.) Read more about the Business Equipment Tax Exemption Program.

Employee Tax Increment Financing

For-profit, non-retail businesses that add a minimum of five new quality jobs within a two-year period can get a refund of up to 80% of state withholding income taxes paid by the business for up to 10 years. Read more about Employee Tax Increment Financing.

Historic Rehabilitation Tax Credits (State & Federal)

For certified rehabilitation expenses for a certified historic income-producing property, the Federal Government offers a 20% federal income tax credit, and the State of Maine offers a refundable 25% state income tax credit; in certain cases, these two credits can be combined. Read more about the State of Maine Historic Rehabilitation Tax Credit and the Federal Historic Rehabilitation Tax Credit.

Maine Seed Capital Tax Credit

This tax credit is for for businesses that are a manufacturer, provide goods or services with 60% of sales derived from outside the state or to out-of-state residents, develop or apply advanced technologies, or bring significant permanent capital into the state. The Finance Authority of Maine may authorize state income tax credits to investors for up to 50% of the cash equity they provide. Investments may be used for fixed assets, research, or working capital. Read more about the Maine Seed Capital Tax Credit.

Pine Tree Development Zones

This program is for businesses in targeted industries (biotechnology, aquaculture and marine technology, composite materials technology, environmental technology, advanced technologies for forestry and agriculture, manufacturing (including precision manufacturing), information technology, and financial services). New or expanding Maine businesses, or out-of-state businesses relocating or establishing a presence in Maine, can get a refund of 80% of state income taxes withheld for qualified employees for up to 10 years, a refund of 100% of state corporate income taxes for years one to five and 50% for years six to ten, a 100% sales and use tax exemption for personal property purchases, a 100% sales and use tax reimbursement on real property purchases, and reduced rates on electricity delivery. Read more about Pine Tree Development Zones.

Tax Increment Financing

The City of Belfast currently utilizes the tax increment financing program. Tax increment financing is a flexible finance tool used my municipalities and other units of government to leverage new real and/or personal property taxes (the increment) generated by a specific project or projects within a defined geographic district, allowing them to shelter a new development's value in regards to state, county, and school district funding formulas. Any portion of these new additional taxes may be used to finance public projects (identified in a development program) for a defined period of time of up to 30 years. The City of Belfast also has the ability to establish agreements (known as credit enhancement agreements) where the new additional taxes can be refunded to the private party that created the new additional taxes. The City of Belfast currently has two tax increment financing districts:

Northport Avenue Omnibus Municipal Tax Increment Financing District

Types and percentages of taxes captured: 100% of real property and 100% of personal property
Original taxable assessed value of district (April 1st, 2004): $9,236,500
Amended original taxable assessed value of district (April 1st, 2012): $10,126,400
Original size of district (April 1st, 2004): 98.55 acres
Amended size of district (April 1st, 2012): 98.58 acres
Date of original designation: January 31st, 2006
Date of approval of first amendment: March 24th, 2014
End date of district: January 30th, 2026

Documentation:
Development Program (PDF)
First Amendment Submission (PDF)
Letter of Approval of First Amendment (PDF)
Map of District (PDF)

Downtown Waterfront Omnibus Municipal Tax Increment Financing District

Types and percentages of taxes captured: 100% of real property and 100% of personal property
Original taxable assessed value of district (April 1st, 2005): $40,995,000
Amended original taxable assessed value of district (April 1st, 2011): $47,407,280
Original size of district (April 1st, 2005): 75.00 acres
Amended size of district (April 1st, 2011): 197.50 acres
Date of original designation: March 20th, 2007
Date of approval of first amendment: April 16th, 2014
End date of district: March 19th, 2032
Credit Enhancement Agreements related to district: 1) Front Street Shipyard
(This tax increment financing district is unique in that it can also use revenues from other City of Belfast tax increment financing districts, such as the Northport Avenue Omnibus Municipal Tax Increment Financing District, to fund projects.)

Documentation:
Development Program (PDF)
First Amendment Submission (PDF)
Letter of Approval of First Amendment (PDF)
Map of District (PDF)

Wight Street Affordable Housing Development and Tax Increment Financing District (proposed)
(This district and its related Credit Enhancement Agreements will be voted on by the Belfast City Council at their meeting of November 5th, 2019.)

Types and percentages of taxes captured: 100% of real property and 100% of personal property
Original taxable assessed value of district (April 1st, 2018): $4,340,900
Size of district (April 1st, 2018): 42.87 acres
Start date of district: April 1st, 2020
End date of district: March 31st, 2050
Credit Enhancement Agreements related to district: 1) a refund of 50% of the new real and personal property taxes, each year for 30 years, that are generated by affordable senior housing in the district owned/operated by Developers Collaborative, to be used to assist in the operation of that affordable senior housing; and 2) a refund of 50% of the new real and personal property taxes, each year for 30 years, that are generated by affordable senior housing in the district owned/operated by Realty Resources, to be used to assist in the operation of that affordable senior housing.

Documentation:
Application (all documents) (draft) (PDF)
Credit Enhancement Agreement with Developers Collaborative (draft) (PDF)
Credit Enhancement Agreement with Realty Resources (draft) (PDF)
Development Program (draft) (PDF)
Map of District (draft) (PDF)
Public Hearing Notice (PDF)
Tax Increment Financing Revenue Projections (draft) (PDF)
Tax Shift Benefits (draft) (PDF)

Other information regarding tax increment financing:
City of Belfast Tax Increment Financing Policy (PDF)
Maine Department of Economic and Community Development
Tax Increment Financing Rules (19-100 C.M.R. chapter. 1, Statute 1-7)
Tax Increment Financing Statute (30-A M.R.S. Statute 5221-5235)