Pine Tree Development Zone Tax Credit: Pine Tree Development Zone Tax Credit (2025)
Maine · Maine Revenue Services · Used for tax years 2025
This worksheet calculates the Maine Pine Tree Development Zone tax credit for tax year 2025. It determines the share of tax attributable to qualified business activity and applies the credit rate to calculate the credit claimed on your Maine income or insurance premiums tax retur
Who files this form
Use this worksheet if you are claiming the Pine Tree Development Zone (PTDZ) tax credit for 2025:
- Corporate taxpayers, including insurance companies, must calculate the credit using this worksheet.
- Individuals, estates, and trusts claiming the credit from a sole proprietorship or pass-through entity must use both this worksheet and Worksheet PTE.
Only businesses certified as Tier 1 qualified businesses qualify for the credit. The credit must first be claimed for the tax year in which the qualified business begins its qualified business activity.
When it's due
The 2025 worksheet lists these program cutoff dates:
- December 31, 2024: Businesses may not be certified for PTDZ benefits after this date.
- December 31, 2034: PTDZ benefits, including the income tax credit, cease on this date.
The supplied text does not state a filing deadline for the 2025 worksheet.
What you'll need
Have these documents and details ready:
- Your applicable Maine tax return: Form 1040ME, 1040C-ME, 1041ME, 1120ME, or INS-4.
- A copy of the PTDZ certificate issued by the Department of Economic and Community Development (DECD), which must be attached with the required worksheets.
- Worksheet PTE if you are an individual, estate, or trust taxpayer.
- A copy of your federal Schedule K-1 if claiming through a pass-through entity. Also provide the entity’s name, EIN/SSN, and your ownership percentage for the tax year.
- Your taxpayer name, EIN/SSN, and the number of years the credit has previously been claimed.
Corporate taxpayers also need qualified PTDZ property and payroll amounts, along with all Maine property and payroll amounts, to complete lines 1 through 6.
How to file
Attach the completed worksheet and a copy of your DECD PTDZ certificate to your applicable Maine tax return. Individuals, estates, and trusts must also attach Worksheet PTE. Pass-through owners must attach a copy of their federal Schedule K-1.
Enter the credit from line 11 on the applicable return:
- Form 1040ME: Schedule A, line 18.
- Form 1040C-ME: Schedule A, line 10.
- Form 1041ME: Schedule A, line 14.
- Form 1120ME: Schedule C, line 1d.
- Form INS-4: Line 17.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Completing the wrong lines: Individuals, estates, and trusts must skip lines 1 through 6 and enter Worksheet PTE, line 8, on line 7.
- Claiming without Tier 1 certification: Businesses not certified as Tier 1 qualified businesses do not qualify.
- Claiming beyond the benefit period: The worksheet says businesses do not qualify once more than 10 years have passed since starting the qualified business activity.
- Including transferred property or jobs: Qualified property excludes property transferred by an affiliated business from elsewhere in Maine. Qualified payroll must not include jobs or positions transferred by the business or an affiliated business from elsewhere in Maine.
- Leaving out pass-through details: Provide the entity’s name, EIN/SSN, and your ownership percentage, and attach your federal Schedule K-1.
Maine Revenue Services may request additional information supporting the credit before processing the return.
Questions people ask
How much is the credit?
For Tier 1 qualified businesses, the credit is up to 100% of Maine tax liability related to qualified activity for the first five tax years and 50% for tax years six through ten. On line 10, enter 1.00 for the first five years or .50 for the second five years.
Does the credit apply to all of my income tax?
The credit applies to tax liability related to qualified business activity. Worksheet PTE determines the applicable ratio for individuals, estates, and trusts, including the effect of nonbusiness income.
Can a pass-through entity owner claim the credit?
Yes. Partners, members, shareholders, beneficiaries, and other owners are allowed credits in proportion to their interests in the entity.
What counts as a Tier 1 location?
Tier 1 includes all areas outside Cumberland and York counties, plus qualifying high-unemployment areas within those counties. A municipality in Cumberland or York County must have an unemployment rate 15% higher than the county’s labor market unemployment rate for the calendar year to qualify. Check the worksheet’s Tier 1 box if DECD has certified the qualified business activity as occurring in a Tier 1 location.