Tax credit to help GNP, Snowe says

BANGOR – A newly approved $65 million tax credit to encourage development throughout Maine includes an undetermined amount of money for investment in Great Northern Paper Inc., U.S. Sen. Olympia Snowe said Wednesday night.

Coastal Enterprises Inc. of Wiscasset will receive the $65 million grant, and about one-third of the money will be targeted for use in the sustained forestry industry “and can be used to encourage investment in Great Northern,” Snowe said in a statement.

The grant is being called a New Markets Tax Credit, and is being distributed by the U.S. Department of Treasury. Snowe received word of the grant’s approval from Treasury Secretary John Snow on Wednesday night.

“This is promising news that I hope can help attract capital for Great Northern, as potential purchasers examine their options,” said Snowe, who campaigned for the grant’s approval. “This substantial new funding can help encourage a stronger return for investors while also helping put mill operations back on line for the long term.”

The New Markets Tax Credit program provides a 39 percent tax credit to investors, distributed over a seven-year period, who make equity investments in qualified, nonprofit community development organizations such as Coastal Enterprises, Snowe said.