Economic Advantages

Northern Maine Economic Advantages

Aroostook County is not only the largest county in Maine by total area, but also the largest county in the United States east of the Mississippi River.

The County has several key economic advantages:

  1. Agriculture: Known as the “Potato Capital of the World,” the county is a major producer of potatoes, generating significant agricultural revenue.
  2. Forestry: Extensive timber resources support a robust logging and wood products industry, with vast commercial forest lands.
  3. Strategic Location: Proximity to the Canadian border facilitates cross-border trade and transportation, particularly with New Brunswick and Quebec.
  4. Renewable Energy: Growing wind energy sector, with large wind farms taking advantage of the county’s open landscapes.
  5. Lower Cost of Living: Relatively inexpensive land and housing attract businesses looking to reduce operational costs.
  6. Natural Resource Management: Sustainable forestry, agriculture, and potential emerging industries like biomass energy provide economic diversification opportunities.
Photo: Paul Cyr

Incentives

  1. Empowerment Zone
    The Federal Empowerment Zone (FEZ) tax credit is a general business tax credit available to employers with employees who both live and work in the zones. This tax credit is limited to for-profit organizations. The credit is equal to 20% of the wages paid up to $15,000 per calendar year, for a maximum annual per employee credit of $3,000.
  2. Tax Increment Financing (TIF)
    Municipalities in Aroostook County can use TIF to support businesses making significant capital investments. TIF is a local financing tool that permits a municipality to use some or all of the new property taxes that result from an investment project within a designated district to assist in that project’s expenses. The municipality may disburse the tax increment directly to the investing business to help pay project costs, use it to retire bonds it issues as part of the project, or retain it for allowable economic development purposes.
  3. Business Equipment Tax Reimbursement
    Businesses can receive reimbursements for local property taxes paid on eligible business property for up to 12 years. This program helps reduce the cost of doing business in the county1.
  4. Dirigo Business Incentives
    The Dirigo Business Incentives program offers eligible businesses the opportunity to greatly reduce state taxes for up to 5 years when they make significant capital investments or provide qualified employee training in certain business sectors. Eligible sectors are:

    o Agriculture, forestry and fishing
    o Manufacturing
    o Long-distance freight transportation
    o Software publishing, data processing and computer design services
    o Engineering, architecture and scientific research and development services