Built on an economy of natural resources, Maine has always had a proud heritage as a rural state. Maine is continuing their tradition and moving forward with building new industries from this base. This kind of growth and development is only possible with large amounts of capital, something that Maine was lacking up until the New Markets Tax Credit (NMTC) was introduced in 2001. Now, the NMTC is an integral part of Maine’s capital flow and has been an important factor in their growth as a state and their ability to compete in the global economy.
Not only has the NMTC helped Maine grow and prosper, but it has also helped the citizens of the state succeed with the creation of new jobs and opportunities. A plant in Baileyville, Maine is a prime example. Operating since 1905, the plant was in desperate need of an upgrade and expansion and they were able to get it done thanks to NMTC funding. As a result, more than 300 existing jobs were saved and almost 100 new positions were created. The New Markets Tax Credit specifically helps communities where there is a high poverty and unemployment rate by driving private investments in a cost effective way. The result is revitalization in the economy and the community.
In hard-hit areas, the New Markets Tax Credit is vital to the continuation of growth. The program provides the much-needed financing for small to medium sized businesses. More than 1,500 jobs have been saved or created as a direct result of the NMTC in Maine. The investments have also indirectly supported tens of thousands of additional jobs in the region. The success of the program has attracted investors from new areas and their investments have supported crucial projects within Maine.
Former Senator of Maine, Olympia Snowe, was a crucial supporter of the New Markets Tax Credit. Snowe was confident in what it could do for Maine and other similar states and strongly supported it from the beginning. The New Markets Tax Credit success in Maine should be shared with similar states that can benefit from the program. The NMTC provides the perfect incentive for investors which would not be there otherwise, and is the right solution for states struggling with high poverty and unemployment levels just as Maine was.