1.
Eligibility
To be certified as a qualified business, a business must be a
for-profit business in this State engaged in an eligible sector, or in the case
of a new business to the State, will be engaged in an eligible sector when
their business activity begins. The business must intend to place eligible
business property into service or begin training as part of a qualified worker
training program within two years of filing their application for
certification. Capital investment or worker training begun prior to the
issuance of a letter of certification from the Commissioner will not be
eligible for the credit under
36 M.R.S.
§5219-AAA(4).
2.
Application
requirements
A business seeking certification shall electronically submit
for the Commissioner's review one original, signed application containing the
following information:
A. Information
on the business's activity:
a. A description
of the qualified business activity in which the business will be
engaged.
b. The addresses of
business operations in Maine, including planned new locations, that will be the
site of qualified business activities for the Dirigo program. If the business
has identified a new location but not yet closed the sale or finalized a lease
for the property at the time of application, they may choose to list only the
municipality or county instead of the full address of that location.
c. The eligible sector or sectors within
which the business will perform its qualified business activity.
B. Information on the business's
investment, training, and overall expansion plans:
a. The timeframe of the project(s) the
business is undertaking for which it is applying for certification.
b. The dollar amount, per year and in total,
planned to be expended on the project that is expected to constitute eligible
capital investment, as well as any additional project investment that is not
expected to be eligible for the credit allowed under
36 M.R.S.
§5219-AAA(4);
c. Confirmation that the business has
reviewed and understands the limitations on eligible business property as
described in
36 M.R.S.
§5219-AAA.
d. A list of any planned qualified training
programs, including:
i. The number of workers
per year planned to be trained by the qualified training program;
ii. A description of the type(s) of training
provided, including the number of training hours per worker; and
iii. A list of the training provider(s) the
business intends to use. This may be the specific organization if known at the
time of application and/or the category of qualified program as listed in
36 M.R.S.
§5219-AAA(1)(P).
C. Confirmation that
the business meets all eligibility criteria, including that the business:
a. Is a for profit business operating or
planning to begin operations in Maine;
b. Is not a public utility as defined by
35-A
M.R.S.
§102(13);
c. Is not currently certified under the Pine
Tree Development Zone or Employment Tax Increment Financing programs;
d. Is not currently certified to receive one
of the tax credits allowed under
36 M.R.S.
§§5219-R R or
5219-Y Y; and
e. Has not undergone a layoff in the past two
tax years as defined in
36 M.R.S.
§§5219-A AA(1)(I). The Department may request
the business to provide documentation to support this requirement, including,
but not limited to, employment numbers as submitted on Line 1 of state
quarterly wage reports (Form ME UC-1 or equivalent).
D. General information about the business,
including:
a. Preferred contact
information;
b. Information to
correctly identify the taxpayer entity, including taxpayer identification
number and business structure (e.g., LLC, C-Corp, S-Corp, sole
proprietorship);
c. Number of
employees in Maine at the time of application;
d. The name, relationship, and shared
ownership percentage of any affiliated businesses operating in Maine.
E. Any other information the
Department may reasonably require.
The information contained in a business's application is
confidential to the extent provided by
36 M.R.S.
§191(2)(SSS).
Applications may be submitted beginning July 1, 2024.
3.
Letter of
Certification
The Commissioner will review and act upon submitted
applications for Dirigo Business Incentive certification. Before issuing a
letter of certification for a business, the Commissioner will determine that
the application is complete, the applicant meets the criteria to be a qualified
business engaged in (or will be engaged in) a qualified business activity, and
the applicant will engage in eligible capital investment or a qualified worker
training program in service of the qualified business activity.
If all criteria have been met, the Commissioner will issue a
letter of certification to the qualified business stating:
A. The name of the certified entity,
including any affiliated businesses that will be engaged in the qualified
business activity.
B. The qualified
business activity, including:
a. A written
description of the qualified business activity;
b. The eligible sectors within which the
business will perform its qualified business activity; and
c. The planned location(s) of the qualified
business activity.
C.
The effective date and expiration date of the letter of
certification.
D. The eligibility
requirements for remaining a qualified business and receiving any tax benefits
allowed under section
36 M.R.S.
§5219-AAA.
The letter of certification will be valid for five years
beginning with the date it is issued. For example, a letter of certification
issued on February 1, 2025, will be valid until February 1, 2030. Letters of
certification issued between July 1, 2024, and December 31, 2024, will have an
effective start date of January 1, 2025, and an end date of January 1,
2030.
If an application does not meet the criteria to receive a
letter of certification, the Commissioner will issue a provisional denial to
the applicant with an explanation of the criteria not met. A business may file
an appeal with the Department within 30 days of receiving the provisional
denial if they believe the denial was issued in error. The appeal must include
a response to the explanation included in the provisional denial. The
Commissioner will review the appeal and original application and issue either a
letter of certification or a final denial.
