Tax Increment Financing
Tax Increment Financing (TIF) is an economic development tool available to the City to use future growth in taxes to finance current improvements or development. Caribou’s TIF Policy establishes a public-private partnership with new development through Credit Enhancement Agreements capturing any increase in valuation and dedicating all or a portion of the taxes associated with the new valuation towards the Project. The City’s goal is to provide an incentive towards job creation, increases and diversification in taxable valuation, and economic growth that will sustain itself over time, thereby improving the economic well being of the entire Community.
Caribou has one of the largest pre-determined Downtown TIF Districts in Maine, being 635 acres in area encompassing all of our Industrial and Commercial Zones. For any Business requesting TIF within this district, the City has already established eligibility for the benefit with the State. This puts Caribou far ahead of others for a timely response to any future requests.
Low Interest Loans
Working with the Caribou Economic Growth Council (CEGC) the City of Caribou is able to offer loan interest loans to businesses looking to locate or expand in Caribou. The mission of the CEGC is to provide economic development assistance to businesses specifically interested in growing in Caribou by providing a point of contact for resources, information, business counseling services, gap financing, business planning, and business support. The CEGC has available loan funds for gap financing through the CEGC Reserve Fund, Rural Development Intermediary Relending Program, and Regional Economic Development Revolving Loan Fund. Guidelines for each of these funding sources are attached. Application inquiries should be directed to the City Manager at 25 High Street.
Pine Tree Zones
Pine Tree Zones (PTZ) are a State of Maine law that allows eligible businesses the benefit of greatly reducing or virtually eliminating state taxes associated with their business and employee base for up to 10 years. The Program provides for a direct reimbursement of state income taxes and certain sales taxes back to the qualifying businesses. Targeted business sectors include; precision manufacturing, financial services, biotechnology, aquaculture, composite materials, environmental technologies, advanced agriculture and forestry, and information technology. Caribou has one of the largest Pine Tree Zones in the State for a municipality having 792 acres encompassing all of our commercial and industrial zones. The City will assist any new business to complete an application for certification with the State of Maine. Attached is further information.
Empowerment Zone Tax Credits
Empowerment Zone Tax Credits is 20% of the employer’s qualified wages (up to $15,000) paid or incurred during the calendar year on behalf of qualified empowerment zone employees. You can find out if your business or an employee’s residence is located within a rural empowerment zone by using the EZ/RC Address Locator.
Information from IRS on Empowerment Zone Tax Credits may be found here.
Tax Increment Financing Information Booklet
- 01 Cover and Intro
- 02 General Information
- 03 Downtown
- 04 First Amendment
- 05 Downtown Second Amendment
- 06 RC2
- 07 Bouchard
- 08 Eaton Peabody
- 09 Finance
- Neal J Griffeth – Credit Enhancement Agreement
- Sitel – Credit Enhancement Agreement
- Caribou Caribou Senior Living LLC OD LTR
- Caribou Senior Housing LLC – Credit Enhancement Agreement