H.P. 1374 - L.D. 1923
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §6753, sub-§10, as enacted by PL 1995, c. 669, §5, is amended to read:
10. Labor market unemployment rate. "Labor market unemployment rate" means the average seasonally adjusted unemployment rate as published by the Department of Labor for the labor market or markets in which potential qualified employees are located and in which reimbursement is claimed under this chapter for the calendar year for which reimbursement is claimed 3 most recently reported months preceding the date of application for employment tax increment financing and for the 3 most recently reported months preceding the beginning of the 6th year of an approved employment tax increment financing development program.
Sec. 2. 36 MRSA §6753, sub-§12, as enacted by PL 1995, c. 669, §5, is amended to read:
12. Qualified employees. "Qualified employees" means new, full-time employees hired in this State by a qualified business and for whom a retirement program subject to the Employee Retirement Income Security Act of 1974, 29 United States Code, Sections 101 to 1461, as amended, and group health insurance are provided, and whose income derived from employment with the applicant, calculated on a calendar year basis is greater than the average annual per capita income in the labor market area in which the qualified employee is employed and whose state income withholding taxes are subject to reimbursement to the qualified business under this chapter. "Qualified employees" must be residents of this State.
Sec. 3. 36 MRSA §6754, sub-§1, ¶¶A and B, as enacted by PL 1995, c. 669, §5, are amended to read:
A. For qualified employees employed by a qualified business in state labor market areas in which the labor market unemployment rate is at or below the state unemployment rate for the
calendar year for which reimbursement is requested at the time of application, the reimbursement is equal to 30% of withholding taxes withheld during that year each of the first 5 calendar years for which reimbursement is requested and attributed to those qualified employees. The percentage of reimbursement for the 6th to 10th years of the employment tax increment financing development program is established based upon the labor market unemployment rate at the beginning of the 6th year.
B. For qualified employees employed by a qualified business in state labor market areas in which the labor market unemployment rate is greater than the state unemployment rate for the calendar year for which reimbursement is requested at the time of application, the reimbursement is equal to 50% of withholding taxes withheld during that year each of the first 5 calendar years for which reimbursement is requested and attributed to those qualified employees. The percentage of reimbursement for the 6th to 10th years of the employment tax increment financing development program is established based upon the labor market unemployment rate at the beginning of the 6th year.
Sec. 4. 36 MRSA §6754, sub-§1, ¶C is enacted to read:
C. For qualified employees employed by a qualified business in state labor market areas in which the labor market unemployment rate is greater than 150% of the state unemployment rate at the time of application, the reimbursement is equal to 75% of withholding taxes withheld during each of the first 5 calendar years for which reimbursement is requested and attributed to those qualified employees. The percentage of reimbursement for the 6th to 10th years of the employment tax increment financing development program is established based upon the labor market unemployment rate at the beginning of the 6th year.
Sec. 5. 36 MRSA §6758, sub-§2, as enacted by PL 1995, c. 669, §5, is amended to read:
2. Determination by State Tax Assessor. On or before June 30th of each year, the State Tax Assessor shall determine the employment tax increment of each qualified business for the preceding calendar year. A qualified business may receive up to 50% 75% of the employment tax increment generated by that business as determined by the State Tax Assessor, subject to the further limitations in section
6753, subsection 2. That amount is referred to as "retained employment tax increment revenues."
Effective July 9, 1998, unless otherwise indicated.
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