State Of Maine Approves Tax Credits For Ashland Sawmill

At their April 30 meeting, the board of directors of the Finance Authority of Maine(FAME) approved state new markets tax credit financing to assist with the planned expansion of the Irving Forest Products sawmill in Ashland. The funds will be used by Irving Forest Products, Inc. as part of an overall multimillion-dollar project to modernize and expand its Ashland sawmill in Nashville Plantation. The investment will double the facility’s annual lumber production capacity from 130 MMBF to 250 MMBF while strengthening its role as a leading manufacturer of dimensional lumber. The sawmill currently supports the equivalent of 140 full-time positions and will grow to the equivalent of approximately 220 full-time jobs upon completion of the project.

“We deeply appreciate FAME’s support for this important project,” Jerome Pelletier of Irving Forest Products, Inc. says. “This investment reflects the hard work of our team and our long-term commitment to the region. It will help us support good jobs and continue contributing to the Aroostook community.”

Commissioner Mike Duguay from the Maine Department of Economic and Community Development adds, “This investment represents exactly the kind of commitment we want to see in Maine’s forest products industry. When a company chooses to nearly double the capacity of a lumber mill right here in our region, it sends a powerful signal — that our heritage industries are not relics of the past, but pillars of our economic future. The forest products sector has defined this community for generations, and investments like this one protect and grow the good-paying jobs that families in this area depend on. We are deeply grateful for this company’s confidence in Maine’s workers and in the long-term strength of our working forests.”

FAME administers the Maine New Markets Capital Investment Program in cooperation with Maine Revenue Services. The program stimulates economic growth and community development in low-income areas of Maine by attracting private investment through tax incentives. Up to $250 million of qualified equity investments is available for allocation to eligible Community Development Entities (CDEs) through this program, but credits may not exceed $20 million in any given year over the seven years of the tax credit allowance dates. The program allows eligible investors to claim tax credits against state taxes in amounts up to 39% of a project’s total cost.