Maine Pine Tree Development Zone Tax Credit

Pine Tree Development Zone Tax Credit
2023 PTDZ Credit Worksheet
Clear

Print

Pine Tree Development Zone Tax Credit
Worksheet for Tax Year 2023
36 M.R.S. §§ 5219-W and 2529

Enclose with Form 1040ME, Form 1041ME, Form 1120ME, or Form INS-4.
Taxpayer Name:___________________________________________________ EIN/SSN: ________________________
Note:	 In the case of pass-through entities (such as partnerships, LLCs, S corporations, and trusts) making eligible investments,
the partners, members, shareholders, beneficiaries, or other owners are allowed a credit in proportion to their respective
interests in these entities. Enter name and ID number of the entity on the lines below. Also enter your ownership percentage
in the pass-through entity for the tax year. Attach a copy of the federal Schedule K-1 issued to you by the pass-through entity.

			Ownership
	
Name of Pass-through Entity	
EIN/SSN	
Percentage
_______________________________________________ 	
Tier 1 location	

__________________________ 	

__________ %

Number of years credit has been previously claimed:_______________________

Note: Individual, estate and trust taxpayers skip lines 1 through 6 below and complete the Worksheet PTE: Pass-Through
Entity Credit Ratio worksheet before completing line 7.
1.	 Qualified Pine Tree Development Zone property.....................................................................1.___________________
2.	 All Maine property....................................................................................................................2.___________________
3.	 Qualified Pine Tree Development Zone payroll.......................................................................3.___________________
4.	 All Maine payroll.......................................................................................................................4.___________________
5.	 Apportionment numerator. (Line 1 plus line 3.)........................................................................5.___________________
6.	 Apportionment denominator. (Line 2 plus line 4.)....................................................................6.___________________
7.	 Pine Tree Development Zone apportionment percentage. (Divide line 5 by line 6.)
	
Except, if individual, estate, or trust, enter amount from Worksheet PTE, line 8.....................7. ___. ___ ___ ___ ___
8.	 Regular income/insurance premiums tax. (Form 1040ME, line 20; Form 1041ME, line 4;
	
Form 1120ME, line 6a; or Form INS-4, line 16).......................................................................8.___________________
9.	 Pine Tree Development Zone credit. (Multiply line 7 x line 8.).................................................9.___________________
10.	 Credit rate. See instructions below.......................................................................................10.___________________
	

If certified as a Tier 1 qualified business, enter 1.00 on this line if this tax year is
within the first 5 years of commencing the qualified business activity. Enter .50 on this
line if this tax year is within the second 5 years of commencing the qualified business
activity. If this tax year is more than 10 years of commencing the qualified business
activity, you do not qualify for the credit.

	

Note: Businesses not certified as a tier 1 qualified business do not qualify for the credit.

11.	 Multiply line 9 x line 10. Enter here and on Form 1040ME, Schedule A, line 17;
	
Form 1041ME, Schedule A, line 14; Form 1120ME, Schedule C, line 1d;
	
or Form INS-4, line 17............................................................................................................11.___________________ 	
Businesses may not be certified for the Pine Tree Development Zone program after December 31, 2024; benefits, including
the income tax credit, will cease on December 31, 2034.
Note: MRS may request additional information supporting the credit claimed before the return can be processed.
Revised: December 2023

2023
Pine Tree Development Zone Tax Credit (“PTDZ”)
Worksheet Instructions
Statewide PTDZ classification:
Tier 1: All areas of the state outside Cumberland and York
counties plus high unemployment areas within Cumberland
and York counties. To qualify as a Tier 1 location, a
municipality in Cumberland or York County must have an
unemployment rate that is 15% higher than the county’s
labor market unemployment rate for the calendar year.

The benefit period is ten years. Check the Tier 1 box on
the worksheet if the qualified business activity has been
certified by the Department of Economic and Community
Development (“DECD”) as occurring in a Tier 1 location.
Also check the Tier 1 box if the qualified business activity
was certified by DECD prior to 2010 and after 2013.

General Instructions

Specific Instructions

What is the PTDZ income tax credit? The credit is available
to certain businesses that expand or begin operations in
Maine. For Tier 1 qualified businesses, the credit allowed
is up to 100% of the Maine tax liability related to qualified
activity for the first five tax years and 50% of the tax liability
for each of the tax years six through ten. A qualified business
may apply for an adjustment of the base level of employment
if it has sustained at least a 15% loss in employment due to
a catastrophic occurrence.

Note: Individual taxpayers must skip lines 1 through 6 and
enter on line 7 the amount from Worksheet PTE, line 8.

For more information about the PTDZ program and the
related tax benefits, visit: www.maine.gov/revenue/taxes/
tax-relief-credits-programs/multiple-tax-programs/pine-treedevelopment-zone.
Note: A business may not be certified by DECD for PTDZ
benefits (including the PTDZ income tax credit) after
December 31, 2024 and the program benefits will cease on
December 31, 2034.
Who must complete this worksheet? Corporate taxpayers
(including insurance companies) claiming PTDZ tax credits
must calculate the credits using this worksheet. Individual,
estate and trust taxpayers, claiming a PTDZ credit from
either a sole proprietorship or a pass-through entity (such as
a partnership or S corporation) must calculate the amount of
the credit using this worksheet and Worksheet PTE. These
required worksheets must be attached to the taxpayer’s
Maine income tax return along with a copy of the PTDZ
certificate issued by DECD.
What does this worksheet do? This worksheet calculates
the PTDZ apportionment percentage for those entities that
have qualified and non-qualified business activity. The
worksheet also calculates the application of the PTDZ tax
credit for all qualified businesses. Individuals claiming this
credit must also complete Worksheet PTE, which apportions
the taxpayer’s income between business and nonbusiness
sources. Non-qualified business activity includes the level
of business activity in Maine that existed prior to PTDZ
certification.
In the case of pass-through entities (such as partnerships,
LLCs, S corporations and trusts), the partners, members,
shareholders, beneficiaries, or other owners are allowed
credits in proportion to their respective interests in these
entities.

Line 1.	 Enter the average value of qualified Pine Tree
Development Zone property. Qualified property
includes all real and tangible personal property
directly associated with the qualified business
activity and placed in service in Maine after the
entity becomes a certified PTDZ business. Excluded
from this amount is the value of property transferred
by an affiliated business to a PTDZ business from
elsewhere in Maine. Purchased property is valued
at cost and rented property is valued at eight times
the annual rental rate. Total qualified property is
determined by averaging the property owned or
rented at the beginning and the end of the tax year.
Line 2.	Enter the average value of all property located
in Maine and owned or rented by the entity or by
affiliated businesses.
Line 3.	 Enter the payroll attributable to the new qualified
business activity as reflected on the qualification
certificate provided by DECD. Do not include payroll
for any jobs or positions transferred by the business
or an affiliated business from elsewhere in Maine.
Line 4.	 Enter the total Maine payroll for the business and all
affiliated business for the year.
Line 7.	 Corporate
taxpayers
(including
insurance
companies) enter the result of line 5 divided by line
6, if the result is greater than 1, enter 1.0000. This
is the ratio of qualified to non-qualified business
activity for the corporation. Individual, estate and
trust taxpayers, enter the amount from Worksheet
PTE, line 8. This is the ratio of qualified business
activity to the taxpayer’s overall activity, including
nonbusiness income. For example, if an individual is
claiming a PTDZ credit of 100%, but only 50% of the
taxpayer’s income is from qualified business activity,
the taxpayer is only entitled to a credit against the
tax liability related to the qualified business activity,
or 50% of the total tax liability for the year.