One of the roles of government is to provide incentives and assistance to areas and communities that are impoverished or struggling throughout the course of the Maine economy. In the state of Maine, there have been a lot of initiatives over the years, but one of the most impactful in recent years has been the New Market Tax cut credit. This tax credit was first unveiled in the year 2001 and has been incredibly useful for the state of Maine in a number of ways.
What is the Maine New Markets Tax Credit?
This is a tax credit that provides private investing to sectors that are looking to grow and thrive. The intention of the tax credit is to provide this sort of business financial assistance to areas of Maine that have high poverty rates and high unemployment. Recipients of the tax credit will have access to private investors, with reasonable incentives that are good for both parties.
There are some very impoverished areas of Maine that have been able to reap tremendous rewards due to this tax credit. For example, a lot of small to medium size operations have been able to grow and survive as opposed to getting washed out during the many different changes throughout the economy. This is integral to the economic landscape of Maine, because in all economies, small and medium-sized businesses make up a great deal of money that changes hands.
Has the New Market Tax Credit being successful?
Without question, this tax credit has been incredibly useful to the state of Maine and its business economy. Since this initiative has been unveiled, more than 1500 jobs were rescued or launched, which has allowed companies to grow by leaps and bounds. Thousands of jobs throughout various regions have been supported through this initiative as well.
One of the major supporters of this tax credit has been one of the state of Maine’s former senators – Olympia Snowe. The senator was a very great supporter of the tax credit and was integral in helping it get passed. If the results from 2001 and forward are any indication, this is a tax credit that will continuously serve the region and create new jobs. It encourages people from various industries to either invest in the economy of Maine or stay here, as opposed to taking their business to another state. This tax credit is an example of a government assisting struggling sectors for the betterment of the overall community.