SPOTLIGHT PROGRAMS

The Economic Development Incentive Program (EDIP): The EDIP program provides discretionary state and local tax incentives to companies that commit to retaining and/or creating full-time jobs.  At the state level, tax credits are awarded typically on a non-refundable and can offset up to 50% of a company’s annual state income tax liability. At the local level, the EDIP program is capable of providing property tax savings to companies investing in real property through tax increment financing incentives. In practice, the TIF works as a property tax abatement typically with a declining abatement percentage over a 5- to 10-year period.

‍

‍Massachusetts Life Sciences Initiative: Through the Massachusetts Life Sciences Center, eligible life sciences industry companies creating at least 10 new jobs statewide are eligible to receive a discretionary tax incentive. Based on the headcount projections for the upcoming calendar year, companies apply for a funding ask which is then awarded as a total dollar amount typically on a per new job basis from the company’s headcount projection. The company then has the option to monetize the tax incentive award amount through a variety of state tax credits, exemptions, and NOL extensions. Typically, companies will elect for the refundability conversion of R&D, investment or jobs tax credits which are redeemed at 90% of face value. The annual application process is typically from December to February with the tax credit award applied to the previous calendar tax year.

‍

‍

‍

TAX CREDITS

Research and Development Tax Credit: Massachusetts offers a permanent R&D tax credit which is separated into two categories. The first category is a 10% credit designed for qualified expenses.  The Commonwealth defines qualified expenses as those which would qualify for the federal R&D tax credit. The second category is a 15% credit available to basic research payments. This provides a credit for any costs related to donations and contributions made to research organizations like hospitals and universities. The R&D tax credit may be used to offset a company’s tax liability to the minimum tax of $456.

‍

‍Massachusetts Investment Tax Credit (ITC): Offers a 3% credit for qualifying businesses for Massachusetts corporate excise tax used during the purchase or lease of a property. The ITC may not reduce corporate liability below $456. The maximum credit allowable in one taxable year is 50% of its liability.

‍

‍

TAX EXEMPTIONS

Sales & Use Tax Exemptions: All machinery, replacement parts, and materials used by manufacturing and R&D corporations in research and development are exempt.‍

‍

Property Tax Incentives: Personal property used in the manufacturing process is exempt from local taxation.

‍

‍

DIRECT FINANCIAL ASSISTANCE

Regional Economic Development Organization (REDO) Grant Program: The REDO grants are used for selected organizations that must support regionally based efforts to nurture and facilitate economic growth and Prosperity in the Commonwealth. The grant may only supplement budgets, the requested amount should not exceed 50% of the organization’s actual prior year operation budget.

‍

‍Massachusetts Transition and Growth Program (MassTAG):  This program provides grant funding to companies that have no presence in Massachusetts. These projects must create more than ten and fewer than 49 jobs in the first year of operation and address a critical need in the state. Grants are awarded on a per-job basis and are dispersed evenly over a three-year period.

‍

‍

JOB TRAINING

Workforce Training Fund: The workforce training fund helps address business productivity and competitiveness by providing funds for the training of new and current employees. The program offers two grants to support business training needs.

‍

Express Program: Provides 100% rebate for small businesses under 100 employees and 50% rebate for businesses with more than 100 employees. Both are capped at $3,00 per person per course. There is also a maximum of $30,000 per year.

‍

General Program: This is a large-scale two-year program. The training program is customized and must have a 1-1 matching, including wage or fringe paid to trainees. There is a maximum of $250,000 over the two-year grant.

‍

‍

‍

Last Updated: April 2023