Pine Tree Development Zone FAQs
- 1. Can wages paid by a qualified Pine Tree Development Zone (“PTDZ”) business to a qualified employee after the beginning of the tax year, but before the date of certification be included in the numerator of the apportionment factor?
- 2. Assume a qualified PTDZ business (parent) wholly owns a subsidiary. The parent has no employees and the subsidiary has 20 employees. Does the parent qualify for the PTDZ credit?
- 3. Can property purchased after the beginning of the tax year but before the date of certification and used in a qualified activity be included in the numerator of the apportionment factor?
- 4. Does the numerator of the apportionment factor include property purchased during the year and immediately expensed (i.e. not depreciated)?
- 5. If a piece of property is used for both qualified and nonqualified activity, can a portion of its value be included in the numerator of the apportionment factor? If so, how do I determine the value to include in the numerator?
- 6. When claiming a reimbursement under the Employment Tax Increment Financing program, must I identify the amount of withholding specific to the positions that qualify under the PTDZ program, or can I use an average withholding amount?
- 7. If a qualified business places property in a separate legal entity such as an LLC for purposes unrelated to tax planning, is that property included in the numerator of the apportionment factor?
- 8. Is the value of qualified PTDZ property limited to the amount specified in the approval letter I received from DECD?