The Economic Development Incentive Program (EDIP): Provides discretionary tax credits to companies that commit to retaining and/or creating full-time jobs. Awarded tax credits are typically non-refundable and can offset up to 50% of a company’s annual state income tax liability. In rare circumstances, refundable tax credits can be awarded.
Massachusetts Life Sciences Initiative: Offers incentives to companies engaged in life sciences R&D, including a 10% credit on depreciable property (90% refundable), extension of NOL for 15 years, a special sales tax exemption, and a construction sales tax exemption.
Life Science Company Jobs Credit: A business in the life sciences industry that creates at least 50 new jobs may be eligible for a corporate income tax credit. If the value of the jobs credit exceeds tax liability, up to 90% of the remaining credit will be refunded.
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.
Regional Economic Development Organization (REDO) Grant Program: The REDO grants is used for selected organizations 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): Provides grant funding to encourage companies to establish operations in the Commonwealth. Critical objectives for this program are job creation, scientific advancement that will benefit patients and further growth of the Massachusetts life sciences ecosystem. The program focuses on companies that do not initially qualify for the MLSC’s tax incentive program due to a lack of existing operations in the Commonwealth.
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.
Massachusetts Investment Tax Credit (ITC): Offers a 3% credit for qualifying businesses for Massachusetts corporate excise tax used during the purchase of lease of a property.
Last Updated: May 2019