Smith & Wesson designated Pine Tree-certified business

HOULTON – The Houlton branch of one of the world’s largest providers of firearms and other security accessories was designated late last week as the town’s first certified business under the state’s Pine Tree Zone initiative.

Jon McLaughlin, the executive director of the Southern Aroostook Development Corp., said in a press release that the Smith & Wesson Corp. plant located in the Houlton Industrial Park had become Pine Tree-certified.

A grass-roots organization, SADC has worked for the past seven years to boost the economic base of the region.

The PTZ initiative was spearheaded by Gov. John E. Baldacci to spark economic development in designated areas of the state where unemployment is relatively high and wages sluggish. The project offers tax incentives and other advantages at both the state and local level for businesses that settle within a PTZ.

To qualify as a certified business, the enterprise must be within a currently designated PTZ location; be engaged in manufacturing, financial services or one of seven targeted technology sectors; create new full-time jobs; offer health insurance;’ and have a qualified retirement program. Any new hires also must receive an income that exceeds the annual per capita personal income for Aroostook County.

McLaughlin noted in a press release that Smith & Wesson meets all the criteria and is in the process of making new capital investments in its Aviation Drive facility. The executive director was upbeat about the news and optimistic about what the designation would do for the company’s future.

“The Pine Tree designation will make Smith & Wesson eligible for several tax-based incentives such as employee tax reimbursements and Maine corporate income tax refunds,” he explained, adding that should the company undertake any building improvements, it would be eligible for an exemption on sales taxes for construction materials.

“These incentives are performance-based and the company has to meet and sustain certain criteria, and the benefits are only on the net new-job creation and building expansion,” McLaughlin continued.

Terry Wade, S&W’s plant manager, could not be reached for comment Monday.

In February 2004, Aroostook County was one of eight zones that received preliminary designation from the state as part of the PTZ program. Houlton later received permission to have land in its industrial park and at the former Bangor and Aroostook Railroad properties designated Pine Tree Development subzones.

Based in Springfield, Mass., Smith & Wesson was established in Houlton in 1966 and currently employs 98 people.