Massachusetts Economic Development Directory
MA Statewide Economic Development Agencies
MA Regional Economic Development Agencies
MA County Economic Development Agencies
MA City Economic Development Agencies
Massachusetts State Incentives
ECONOMIC DEVELOPMENT INCENTIVE PROGRAM (EDIP): Participating companies may receive state and local tax incentives in exchange for job creation, manufacturing job retention and private investment commitments. It offers incentives in several ways:
- In municipalities that are Economic Target Areas, expansions can be assisted with locally‐approved TIF agreements which are exemptions on the value added to a property in the expansion and a state‐approved 3‐5 percent Investment Tax Credit,
- For projects that result in 100 or more new jobs (Enhanced Expansion Projects), companies can be approved by the state for the Investment Tax Credits of up to 10 percent, without the need for any local approvals,
- For projects in select “Gateway Communities” that create 100+ jobs, companies can pursue both a local TIF agreement and state‐approved Investment Tax Credits of up to 10 percent. Manufacturing Retention projects can receive up to a 40 percent.
INVESTMENT TAX CREDIT (ITC): Offers a 3 percent 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 doing business. The ITC can reduce the cost of expansion, includes a carry forward provision and is considered a permanent incentive.
R&D TAX CREDIT: A tax incentive for research and development investment for both manufacturers and R&D companies. It was designed to remove any obstacles to R&D investment and spur growth and innovation throughout the Commonwealth. The R&D tax credit closely resembles the federal credit program, however, it specifically offers qualifying Massachusetts companies many unique features for doing business in Massachusetts. It is available to any foreign or domestic corporation subject to the corporate excise under Chapter 63 Massachusetts Law
SINGLE SALES FACTOR: Tax apportionment that significantly reduces the tax burden for manufacturers and other qualifying companies and may apply to the following types of companies that have multi-state tax filings:
- Manufacturing companies
- Qualifying defense contractors
- Qualifying financial service providers
TAX INCREMENT FINANCING: Allows municipalities to provide flexible targeted incentives to stimulate job-creating development
- Negotiated Agreement between business and host municipality;
- 5 year minimum, 20 year maximum or anything in between;
- Business pays full tax rate on the “base value”;
- Exemption from property taxation on all or part of the increased value accrued as a result of development
- Percentage of exemption may range from 5% to 100%;
- Personal property tax exemption for both existing and new property;
- M.G.L. 40 § 59 governs all TIF Agreements.
BROWNFIELDS REDEVELOPMENT FUND: Created in 1998 to encourage the reuse of Brownfields in Economically Distressed Areas (EDAs) throughout MA. Brownfields are vacant, abandoned or underutilized industrial or commercial properties where expansion, redevelopment or improvement is complicated by real or perceived environmental contamination and liability. MassDevelopment administers the Brownfields Redevelopment Fund programs.
- The Brownfields Site Assessment Program – Provides unsecured, interest free financing up to $100,000 for environmental assessment of Brownfields.
- The Brownfields Remediation Loan Program – Provides flexible loans up to $500,000 for environmental clean-up of Brownfields.
WORKFORCE TRAINING FUND (WTF): Provides grants up to $100,000 to upgrade skills of new or incumbent workers. The Hiring Incentive Training Grant provides up to $2,000 in training funds for hiring eligible unemployed workers.
GREEN LOAN PROGRAM: Bridges the gap between energy efficiency project costs and the rebates or subsidies provided by utility companies and state/federal incentive programs. To be eligible, an organization must be a non-profit or for-profit business in Massachusetts that has been in existence for at least five years and demonstrates an ability to repay the loan.
Loans are available in the amounts of $50,000 to $500,000 and are net of project-related rebates or subsidies.
Loans may only be made for projects that receive approval for a utility rebate under a public utility sponsored energy efficient program authorized by the Massachusetts Department of Public Utilities or approval for a subsidy from a state/federal energy efficiency incentive. Funds may be used for:
- HVAC replacements or improvements
- Windows, insulation, and other building improvements
- Energy control systems
- Chillers and Boilers
- Hot water heaters
- Photovoltaic panels
EMERGING TECHNOLOGY FUND (ETF): Targets technology companies that are starting up or expanding manufacturing in Massachusetts by providing financing for manufacturing facilities and equipment. It offers loans or loan participations up to $2,500,000 and loan guarantees up to $1,000,000. Companies that receive ETF financing must have strong management teams, demonstrated technical feasibility, market demand for their products and a proven fundraising record. To qualify for ETF financing:
- Borrower must be a technology company starting or expanding manufacturing operations in Massachusetts
- Financing must be for the purchase, expansion or improvement of real estate, and/or the purchase of equipment
- There must be at least two other parties at risk
- Financial investment must benefit the Massachusetts economy
COMMUNITY SERVICE 501(C)(3) LOAN FUND: Flexible financing for capital improvements for community-based nonprofit organizations such as elder care centers, daycare facilities, community centers and girls’ and boys’ clubs. The fund will provide loans ranging from $100,000 up to $500,000. Eligible applicants must be registered as a Massachusetts-based 501(c)(3) organization; have an operating budget of less than $5 million for each of the last five years; provide social, youth or family services; primarily work in underserved or disadvantaged communities; and, be ineligible for financing under existing loan programs.
MA CULTURAL FACILITIES FUND (CFF): An initiative of the Commonwealth to increase public and private investment in cultural facilities throughout the state. The Program is administered jointly with the Massachusetts Cultural Council and three types of grant programs are available:
- Capital Grants for expenses related to acquisition, design, construction, repair, renovation and rehabilitation of other capital improvements or deferred maintenance of a cultural facility
- Feasibility and Technical Assistance Grants for expenses related to planning and feasibility assessment for a cultural facility
- Systems Replacement Grants for expenses to undertake the production of 20-year capital needs assessments of their buildings and mechanical systems
All Fund grants must be matched by contributions from the private or public sector and are available to:
- Nonprofit 501(c) 3 organizations primarily engaged in the arts, humanities or interpretive sciences. Eligible facilities include, but are not limited to, museums, historic sites, zoos, aquariums, theaters, concert halls, exhibition spaces, classrooms and auditoriums, and must be owned, leased or used by one or more nonprofit cultural organizations and accessible to the public
- Public/private institutions of higher education that own cultural facilities providing service and open access to the community and the general public beyond their educational mission and demonstrate financial need
- Municipalities that own cultural facilities provided that the cultural facility is at least 50,000 square feet, and 50 percent devoted to cultural purposes
SMALL FARM LOAN PROGRAM: To help small farmers in Massachusetts finance projects that improve their operations and increase their income, MassDevelopment, The Strolling of the Heifers, Inc. and The Carrot Project have teamed together to offer a small farm loan program that provides loans ranging from $3,000 to $35,000. Eligible farmers will own or lease farms in Massachusetts.
TECH DOLLARS: MassDevelopment offers a special loan program to help non-profit 501(c) 3 organizations purchase and install technology equipment. TechDollars provides loans from $25,000 to $250,000 and 100 percent of cost of purchase of new or used telecommunications and IT equipment and installation costs
To be eligible, the borrower must be a Massachusetts 501(c) 3 organization and equipment purchased must be installed in facilities located in the state.
LIFE SCIENCE INCENTIVES
- COOPERATIVE RESEARCH GRANT: Supports industry‐sponsored research at universities and facilitates scientific discoveries that lead to medical applications with grants of $250,000 per year for up to three years, in a 1:1 match with its industry partner.
- NEW FACULTY STARTUP GRANT: Targets investments to attract and retain nationally prominent faculty at Massachusetts’ colleges and universities with grants of $250,000 per year for up to three years, in a 1:1 match with the academic institution.
- NEW INVESTIGATOR GRANT: Spurring innovative new research and advancing the careers of new investigators who are working on cutting‐edge research at Massachusetts academic research centers with grants of $100,000 per year for up to three years.
- LIFE SCIENCES ACCELERATOR: Financing, up to $750,000, for early‐stage companies to help leverage additional sources of capital.
- SMALL BUSINESS MATCHING GRANT (SMBG) - Provides “matching” support—capped at $500,000 per company—to Phase II or Post Phase II SBIR or STTR grants already received by applicant companies.
- LIFE SCIENCES TAX INCENTIVE PROGRAM: Companies that are growing jobs, investments and revenue are prospects for the nine distinct tax incentives of the LSI. To receive benefits, companies must apply to the MLSC to become a Certified Life Science Company. The incentives include:
o Refundable 10% Investment Tax Credit
o Refundable FDA User fee Credit
o Refundable Research Tax Credit
o Elimination of Sales Factor Throwback
o Deduction for Orphan Drug Clinical Testing
o Special Sales Tax Exemption
o Life Sciences Research Credit
o Construction Sales Tax Exemption