MASSACHUSETTS INCENTIVES 

Massachusetts shows an average deal value of $1.30 million with 67 new jobs created per deal

ECONOMIC DEVELOPMENT INCENTIVE PROGRAM (EDIP)

EDIP is a tax incentive program designed to foster fulltime job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state and local tax incentives in exchange for full-time job creation, manufacturing job retention, and private investment commitments.

As of January 1, 2010, the Economic Assistance Coordinating Council (“EACC”) may certify three categories of project for companies that generate substantial sales outside of the Commonwealth and are seeking the EDIP Investment Tax Credit (ITC): full-time job creation and investment projects within Economic Target Areas, projects with exceptional employment growth across the Commonwealth and finally, projects within gateway communities that sustain and grow manufacturing jobs.

The EACC will also consider applications seeking the Abandoned Building Renovation Deduction and municipally supported local real estate tax incentive applications for projects that are not seeking an EDIP-ITC. EACC meets quarterly.

MASSACHUSETTS INVESTMENT TAX CREDIT (ITC)

The Massachusetts Investment Tax Credit offers a 3% credit for qualifying businesses against their Massachusetts corporate excise tax. The credit is to be used for the purchase and lease of qualified tangible property used in the course of business operations.  The Massachusetts Investment Tax Credit is available to manufacturers, certain research and development corporations and corporations engaged primarily in agriculture or commercial fishing.

The ITC is 3% of the cost (or other basis for federal income tax purposes) of qualifying tangible property acquired, constructed, reconstructed, or erected during the taxable year, after federal tax deductions are taken on the property. Qualifying property includes tangible personal property and other tangible property, including buildings and structural components of buildings acquired by purchase. The ITC also applies to property used by a lease under an operating lease. An operating lease is defined as any agreement to rent, lease, or license the right to use personal property, other than agreements that are considered purchases for federal tax purposes. (Property acquired under a capital lease qualifies for the credit as well). Unused credits may be carried over to subsequent years.

RESEARCH AND DEVELOPMENT TAX CREDIT

Massachusetts offers a tax credit for research and development investment for both manufacturers and R&D companies. This tax credit was designed to reduce obstacles to R&D investment and spur growth and innovation.  The first credit category is designed for Qualified Expenses which are defined as any research expense incurred which would qualify for the Federal R&D tax credit. This credit is computed at 10%.  The second credit is available to Basic Research Payments and is computed at 15%. This credit is available for any costs related to donations and contributions made to research organizations such as hospitals and universities.

OTHER MASSACHUSETTS INCENTIVE PROGRAMS

  • Brownfields Redevelopment Fund
  • Green Loan Program
  • Emerging Technology Fund
  • Community Service 501(C)(3) Loan Fund
  • MA Cultural Facilities Fund (CFF)
  • Small Farm Loan Program
  • Tech Dollars
  • New Market Tax Credits (NMTC)
  • Life Sciences Tax Incentive Program
  • Tax Increment Financing
  • Workforce Training Fund