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Pine Tree Zone benefits include: a 100 percent refund of corporate income tax and insurance premium tax for five years; a 50 percent refund for an additional five years; a return of 80 percent of the state income taxes withheld for net new employees through Employment Tax Increment Financing; 100 percent sales and use tax exemption on equipment purchases; 100 percent sales and use tax reimbursement on construction materials, local option Tax Increment Financing, and reduced electric rates. These factors are likely to be partially counterbalanced by a reduction in insurance premium tax on legal cession business and the company's reducing exposure as a result of the decision to cease underwriting unprofitable energy and international aviation lines. Other major tax types, including Corporate Intangible, Communication Services Tax, Sales and Use Tax, Motor Fuels Tax and Insurance Premium Tax, will be implemented using a phased approach, beginning with Communication Services Tax in October 2001. |
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