Posted on April 25, 2017
New Markets Tax Program boosts Maine’s economy
There has been a tremendous outpour of benefits seen in the state of Maine, all thanks to tax credits for rural development and investment opportunities. The United States Department of Treasury has given $80 million in new markets tax credit capacity in the state of Maine. This made way for economic development projects to create opportunity in rural communities and low income areas. Since these new markets tax credits, there have been nearly one hundred projects since 2004. This effectively created, or preserved nearly 5,000 permanent jobs in primarily rural areas. There have been twenty- two projects financed in Maine, with about $274 million in new market funds. Each dollar that Maine put into the new markets program has in turn generated $21.67 of gross state product. This helped to boost the economic activity, including sales and taxes. It is estimated that the new markets program will result in a $15.8 million revenue gain for the state budget between 2013 and 2021. This gain can be used to help fund other critical state programs. OPEGA has shown that this program has created and/or retained 764 permanent jobs in the state of Maine.
The Maine New Markets Tax Credit program has also created or saved more than 1,000 indirect jobs. Had it not been for this investment program, these jobs would not exist. Thanks to the new markets tax credit program and initiatives of similar effect at both state and federal levels, resources are being secured necessary to make significant improvements and boosts to the economy. This federal program was created to stimulate an investment in the economy and to help economically distressed communities to generate jobs and ultimately improve the lives of the residents. There is even a model for conservation in the rural woods of north-central Maine. This would contribute to the local economy, the environment and social equity, all the while still supporting forest-products, jobs and even new outdoor recreational opportunities for the public.
All in all, there has been tons of economic benefits seen in the state of Maine, all thanks to tax credits for rural development and investment opportunities. The boost to the economy since this program has been tremendous and has brought outstanding results to the state of Maine. With Maine’s economy struggling to get a foothold, the new markets tax program was definitely critical to providing much needed investment to the economic growth of the state of Maine and will likely be boosting and stabilizing the economy for years to come.