87. Sales of tangible personal property to qualified development zone businesses. Beginning July 1, 2005, sales of tangible personal property to a qualified Pine Tree Development Zone business, as defined in Title 30-A, section 5246 5250-I, subsection 17, for use directly and primarily in one or more qualified business activities, as defined in Title 30-A, section 5246 5250-I, subsection 16. The exemption provided by this subsection is limited for each qualified Pine Tree Development Zone business to sales occurring within a period of 10 years from the date the business is certified pursuant to Title 30-A, section 5250-B 5250-O or until December 31, 2018, whichever occurs first.

Sec. D-4. 36 MRSA §2529, sub-§§1 and 2, as enacted by PL 2003, c. 451, Pt. NNN, §4 and affected by §8, are amended to read:

1. Credit allowed. A taxpayer that is a qualified Pine Tree Development Zone business as defined in Title 30-A, section 5246 5250-I, subsection 17 is allowed a credit in the amount of:

A. One hundred percent of the tax associated with premiums sold by a qualified business located in a Pine Tree Development Zone that would otherwise be due under this chapter for each of the first 5 taxable years that the taxpayer is required to file a return pursuant to this chapter beginning after the taxpayer commences its qualified business activity, as defined in Title 30-A, section 5246 5250-I, subsection 16, and that are directly attributable to a qualified business activity; and

B. Fifty percent of the tax associated with premiums sold by a qualified business in a Pine Tree Development Zone that would otherwise be due under this chapter for each of the taxable years beginning with the 6th taxable year and ending with the 10th taxable year that the taxpayer is required to file a return pursuant to this chapter after the taxpayer commences its qualified business activity, as defined in