Sec. 1. 36 MRSA §5219-Q is enacted to read:

§5219-Q.__Jobs and opportunity credit

1.__Credit allowed.__A taxpayer is allowed a credit against the tax imposed under chapter 817 if:

A.__The taxpayer's business operations are located in a municipality with an equalized property tax rate greater than 150% of the statewide average equalized property tax rate;

B.__The median household income for the municipality is 90% or less of the statewide median household income for the previous year;

C.__The taxpayer began operations in the municipality within 3 years previous to the tax year for which the credit is claimed; and

D.__The taxpayer did not relocate from another municipality in the State.

2.__Amount of credit.__The credit allowed under this section is equal to the tax imposed under chapter 817 that is attributable to operations of the taxpayer described in subsection 1.

3.__Reduction not less than zero.__The credit allowed under this section for any taxable year may not reduce the tax due to less than zero.

Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 2000.

SUMMARY

This bill permits a credit against the corporate income tax for the first 3 years of business operations of a taxpayer in a municipality with an equalized property tax mill rate greater than 150% of the statewide average equalized property tax rate and a median household income that is 90% or less of the statewide median household income. The credit is restricted to taxpayers who did not relocate from another municipality in the State.