89.__Sales of tangible personal property to qualified Pine Tree Recreation Zone businesses.__Beginning July 1, 2005, sales of tangible personal property to a qualified Pine Tree Recreation Zone business, as defined in Title 30-A, section 5250-Q, subsection 8, for use directly and primarily in one or more qualified recreation business activities, as defined in Title 30- A, section 5250-Q, subsection 10. The exemption provided by this subsection is limited for each qualified Pine Tree Recreation 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-S or until December 31, 2018, whichever occurs first.

Sec. 3. 36 MRSA §5219-Y is enacted to read:

§5219-Y.__Pine Tree Recreation Zone tax credit

1.__Credit allowed.__Except as provided by subsection 2, a taxpayer that is a qualified Pine Tree Recreation Zone business as defined in Title 30-A, section 5250-Q, subsection 8 is allowed a credit in the amount of:

A. One hundred percent of the tax that would otherwise be due under this Part for each of the first 5 taxable years that the taxpayer is required to file a return pursuant to this Part beginning after the taxpayer commences its qualified recreation business activity, as defined in Title 30-A, section 5250-Q, subsection 10; and

B.__Fifty percent of the tax that would otherwise be due under this Part 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 Part after the taxpayer commences its qualified recreation business activity, as defined in Title 30-A, section 5250-Q, subsection 10.

2.__Apportioned credit in certain circumstances.__In the case of a qualified Pine Tree Recreation Zone business, as defined in Title 30-A, section 5250-Q, subsection 8, that has a business presence in the State other than that conducted within the Pine Tree Recreation Zone, as defined by Title 30-A, section