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Proposed Federal Legislation Could Enhance Madison's Development Toolbox

An advanced generator producing CO2 for Backyard Farms' tomatoes

Washington, DC - A bipartisan proposal in the U.S. Senate could open doors for more high-tech manufacturing to come to Maine. Senators Snowe (R-ME), Brown (D-OH), Kerry (D-MA), and Smith (R-OR) have introduced Senate bill S. 2885 to update the definition of manufacturing and broaden the types of operations that can qualify for tax-exempt and low-cost financing through the Industrial Development Bond (IDB) program to spur new economic development.

IDB's traditionally have allowed state and local development authorities, including the Finance Authority of Maine, to help finance new or expanding manufacturing operations. The proposed legislation will expand the definition of manufacturing to high-tech facilities, such as software and biotechnology firms that are critical in the global economy.

This could have a positive impact on Madison's efforts to attract innovative firms to MBG. Madison's success can partly be attributed to the strategic use of Tax Increment Financing, Pine Tree Zone tax benefit programs, state-sponsored workforce training programs and other incentives that are very attractive to business owners and entrepreneurs. The IDBs are another tool that can be used to support new or expanding operations that will continue to broaden the diverse econmic base in Madison and provide jobs and prosperity for the community.

"By allowing more high-tech firms to qualify for these benefits, we would add to our list of advantages and help Madison compete for companies developing new products and ideas," noted Norman Dean, Madison's town manager. "Assuming the legislation passes, the IDBs, along with grants from the Maine Technology Institute, Madison, and Maine as a whole, can do a lot to support a wide range of new businesses that keep us competing at forefront of the economy."

The Maine Technology Institute recently issued a report that urges the state to focus on developing technology clusters that would be key to the success of the state's economy. The changes to the IDB funding mechanisms could boost efforts statewide to attract new technology-based and innovative businesses in several sectors.

While Madison has not focused specifically on one type or business or another, the town would welcome operations that bring jobs and business diversity to the area. Dean added, "We'll use every resource we can internal and external, to support businesses that want to locate in Madison, and help them thrive."

The IDB legislation was introduced on April 17 and was proposed by the Council of Development Finance Industries, a national association that works on economic development finance issues.

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