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INSTRUCTIONS

General Instructions

Specific Instructions

What is the Pine Tree Development Zone income tax

Note: Individual taxpayers may skip lines 1 through

credit? The credit is available to certain businesses that

6 and enter the amount from Worksheet PTE, line 9

expand or begin operations in a designated area of the

on line 7.

state targeted for the need for economic growth. For

details about the program, visit:

Line 1. Enter the value of qualified property located in

enue/incomeestate.

a Pine Tree Development Zone. Qualified property used

in a qualified business includes all real and tangible per-

Who must complete this worksheet? Corporate tax-

sonal property directly associated with the qualified busi-

payers claiming a Pine Tree Development Zone (“PTDZ”)

ness activity and placed in service in a PTDZ after the

income tax credit must calculate the amount of the credit

entity becomes a certified PTDZ business. Excluded from

using this worksheet. Individual taxpayers claiming a

this amount is the value of property transferred by an

PTDZ credit from either a sole proprietorship or a pass-

affiliated business to a PTDZ from a non-zone location

through entity (partnership, S corporation, etc.) must cal-

in Maine. Property is valued at cost and is determined

culate the amount of the credit using this worksheet and

by averaging the property owned or rented at the begin-

Worksheet PTE. This worksheet (and Worksheet PTE, if

ning and the end of the tax year.

required) must be attached to the taxpayer’s Maine in-

come tax return along with a copy of the Pine Tree De-

Line 2. Enter the value of all property located in Maine

velopment Zone certificate issued by the Department of

and owned or rented by the entity or by an affiliated busi-

Economic and Community Development.

ness.

What does this worksheet do? This worksheet calcu-

Line 3. Enter the compensation paid to new employees

lates the Pine Tree Development Zone apportionment

engaged in a qualified business activity in the Pine Tree

percentage for those entities that have qualified and non-

Development Zone. Compensation of employees trans-

qualified business activity. The worksheet also calcu-

ferred by the business or an affiliated business to a PTDZ

lates the application of the PTDZ income tax credit for

from elsewhere in Maine must be excluded from this line.

all qualified businesses. Individuals claiming this credit

must also complete Worksheet PTE, which apportions

Line 4. Enter the compensation of all Maine employees

the taxpayer’s income between business and nonbusiness

of the business, including Maine employees of affiliated

sources.

businesses.

For more information about the Pine Tree Development

Line 7. Corporate taxpayers enter the result of line 5

Zone program and the related benefits, see Maine Rev-

divided by line 6. This is the ratio of qualified to

enue Services guidance on the Pine Tree Development

nonqualified business activity for the corporation. Indi-

Zone income tax credit available at:

vidual taxpayers enter the amount from Worksheet PTE,

revenue/incomeestate.

line 9. This is the ratio of qualified business activity to

the taxpayer’s overall activity, including nonbusiness in-

come. For example, if an individual is claiming a PTDZ

credit of 100%, but only 50% of the taxpayer’s income

is from the business, the taxpayer is only entitled to a

credit against the tax liability related to business income,

or 50% of the total tax liability for the year.

Rev. 2/05

Instructions For Pine Tree Development Zone Income Tax Credit - Maine Revenue Services

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