AUGUSTA (AP) — A new state report is praising and also raising questions about a tax credit program that directed millions of dollars to a paper mill that shut down within 14 months.
The Legislature’s Office of Program Evaluation and Government Accountability says the capital investment program spurs $21.67 of value for every $1 in tax credits.
The program provides a 39 percent tax credit over seven years for investors who make certain investments in low-income community businesses.
The state is committed to providing $16 million in tax credits for investments in Great Northern Paper in East Millinocket to avoid foreclosure.
So far, the mill is the program’s only project that has filed for bankruptcy.
The new report recommends changes like setting expectations for cost-effectiveness and gathering data to evaluate the program.
The Great Northern Paper mill in East Millinocket. The state is committed to providing $16 million in tax credits for investments in Great Northern Paper in East Millinocket to avoid foreclosure. So far, the mill is the program’s only project that has filed for bankruptcy.
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