May 15, 2007

TO: Maine Businesses Receiving Economic Development Incentives Exceeding $10,000 in Calendar Year 2006

FROM: John Richardson, Commissioner

SUBJECT: Economic Development Incentive Report 2006 (EDIR06)

The Maine Legislature passed a law that took effect in July 1998, requiring annual reports from businesses that receive more than $10,000 from certain economic development incentive programs. The eight incentives covered by the statute include: Business Equipment Tax Reimbursement (BETR), Employment Tax Increment Financing, Governor’s Training Initiative, Jobs and Investment Tax Credit, Maine Quality Centers, Research Expense Tax Credit, (Municipal) Tax Increment Financing and the Shipbuilders Tax Credit.

An amendment to the incentives law was adopted during the Second Regular Session of the 119th Legislature, and took effect on August 11, 2000. The law sets the reporting date for businesses as August 1st, with a required reporting date for agencies of October 1st, and requires withholding of reimbursement under the BETR program for businesses that fail to file required reports. Notice and due process rights are ensured. The law was further amended in 2002 to require that all businesses receiving over $10,000 in one of the economic development incentive programs must file a report. Previously, only Maine employers were required to file. A copy of the current law is enclosed.

The annual report seeks business information on the amount of funds received from each incentive, the total company funds expended on training and capital, the number of jobs created and retained, company total employment levels, and average wages and benefits paid by job classification.

Your completed surveys should be submitted to my office, Attention: EDIR06, by August 1, 2007. The four state agencies involved will then be consolidating information for the agency reports due to the Legislature on October 1, 2007. General process questions may be directed to Paul Brunetti at (207) 624-9802 or Paul.Brunetti[at]maine.gov. For specific program questions, please refer to the attached inter-agency staff list. Thank you in advance for your cooperation in ensuring that the requirements and deadlines of the incentives law are followed.