Massachusetts offers a wide array of business incentives aimed at supporting economic development, technological innovation, and job creation across various sectors.  With a strong focus on technology, life sciences, clean energy, and advanced manufacturing, Massachusetts is committed to fostering a dynamic environment for businesses to thrive.  Below are some of the key business incentives available in the state.

Massachusetts Economic Development Incentive Program (EDIP)

Overview

The EDIP provides tax incentives to businesses that expand or relocate to Massachusetts.  The program is designed to stimulate job creation, attract investment, and enhance the state's economy, with a particular focus on high-growth industries.

Eligibility

• Businesses must create a minimum number of new, full-time jobs.

• The business must make an investment in facilities, equipment, or infrastructure within Massachusetts.

• The program targets industries such as technology, life sciences, manufacturing, and clean energy.

Incentive Value

• Businesses can receive state and local tax credits, including up to a 10-year corporate income tax credit.

• Local property tax abatements may also be available, and the program may include a Sales and Use Tax exemption on certain equipment purchases.

Application Process

Businesses must apply through the Massachusetts Executive Office of Housing and Economic Development (EOHED), providing project details, financial information, and job creation plans.

Massachusetts Investment Tax Credit (ITC)

Overview

The Massachusetts Investment Tax Credit (ITC) is designed to incentivize businesses to make capital investments in the state. This credit encourages the purchase of tangible personal property used in manufacturing, research, and development activities.

Eligibility

• Businesses must purchase or lease qualifying property that is used in manufacturing, research, or development.

• The property must be located in Massachusetts.

Incentive Value

• Businesses can receive a tax credit equal to 3% of the cost of qualified investments.

• The credit can be carried forward for up to 5 years.

Application Process

Businesses must file an application with the Massachusetts Department of Revenue (MDR), providing documentation of the qualifying investments.

Massachusetts Life Sciences Tax Incentive Program

Overview

The Massachusetts Life Sciences Tax Incentive Program is designed to support the growth of the life sciences industry in the state.  The program provides tax incentives to companies engaged in biotechnology, pharmaceutical research, and medical device manufacturing.

Eligibility

• Businesses must be in the life sciences sector, including biotechnology, pharmaceuticals, and medical device manufacturing.

• The business must meet job creation and investment requirements.

Incentive Value

• The program offers tax credits, including income tax credits and property tax exemptions, based on job creation and investment levels.

• Businesses can receive up to $25 million in tax credits over the life of the project.

Application Process

Businesses must apply through the Massachusetts Life Sciences Center, providing detailed information about the project, investments, and job creation.

Massachusetts Research and Development (R&D) Tax Credit

Overview

The Massachusetts R&D Tax Credit is designed to encourage companies to invest in research and development activities.  This program provides businesses with a credit for qualifying R&D expenditures, fostering innovation across various industries.

Eligibility

• The credit is available to businesses engaged in R&D activities in Massachusetts.

• R&D activities must involve the development or improvement of products, processes, or technologies.

Incentive Value

• Businesses can receive a credit of up to 10% of eligible R&D expenses incurred in Massachusetts.

• The credit can be carried forward for up to 10 years.

Application Process

Businesses must file a claim with MDR, providing documentation of R&D expenses and activities.

Massachusetts Workforce Training Fund Program

Overview

The Massachusetts Workforce Training Fund Program helps businesses develop a skilled workforce by providing grants to support employee training and skill development.  The program is aimed at ensuring that businesses can access the talent they need to grow and remain competitive.

Eligibility

• Businesses must be registered in Massachusetts and have at least one full-time employee.

• The training must improve employee skills or help the business adapt to changing market conditions.

Incentive Value

• The program offers grants to cover up to 50% of the cost of employee training programs, with a maximum grant amount of $250,000.

• The program also provides support for specialized training programs related to new technology or processes.

Application Process

Businesses must apply through the Massachusetts Executive Office of Labor and Workforce Development, providing details of the training program and the business’s workforce needs.

Massachusetts Green Jobs Incentive Program

Overview

The Massachusetts Green Jobs Incentive Program offers incentives to businesses that create jobs in clean energy, sustainability, and environmental sectors.  The program aims to promote the growth of green industries, such as renewable energy and energy efficiency, within the state.

Eligibility

• Businesses must create full-time, permanent jobs in the clean energy or environmental sectors.

• The jobs must be focused on renewable energy, energy efficiency, or environmental sustainability.

Incentive Value

• Businesses can receive tax credits for each green job created, with credits ranging from $5,000 to $25,000 per job depending on the industry and the wage level.

• Additional incentives may be available for businesses that invest in renewable energy technologies or energy efficiency measures.

Application Process

Businesses must apply to the Massachusetts Department of Energy Resources, providing information about job creation and the environmental benefits of their projects.

Massachusetts Economic Opportunity Area Program (EOA)

Overview

The Massachusetts EOA Program provides tax incentives to businesses located in economically distressed areas of the state.  The program aims to promote business investment and job creation in these areas by offering various tax benefits.

Eligibility

• Businesses must locate or expand within designated Economic Opportunity Areas.

• The program is available to businesses in a range of sectors, including manufacturing, technology, and clean energy.

Incentive Value

• Businesses can receive a property tax exemption, income tax credits, and sales tax exemptions on equipment purchases.

• The program offers up to 10 years of tax relief for qualifying businesses.

Application Process

Businesses must apply to MDR, providing documentation of their location, investments, and job creation activities.

Massachusetts Historic Rehabilitation Tax Credit

Overview

The Massachusetts Historic Rehabilitation Tax Credit encourages businesses to invest in the preservation and rehabilitation of historic properties.  The credit is aimed at revitalizing older buildings while maintaining their historical integrity.

Eligibility

• Businesses must undertake a qualified rehabilitation project on a historic building.

• The property must be listed on the National Register of Historic Places or be designated as a local historic property.

Incentive Value

• The program provides a tax credit equal to 20% of the qualified rehabilitation expenditures.

• The credit can be used against state income taxes and can be carried forward for up to 5 years.

Application Process

Businesses must apply to the Massachusetts Historical Commission, providing detailed plans for the rehabilitation and the costs associated with the project.

Massachusetts Tax Increment Financing (TIF)

Overview

The Massachusetts TIF program offers property tax incentives to businesses that invest in new construction, renovation, or equipment purchases.  The program encourages businesses to locate in Massachusetts or expand their existing operations.

Eligibility

• Businesses must make significant investments in new construction, renovation, or equipment.

• The business must create or retain jobs as a result of the investment.

Incentive Value

• Businesses can receive up to 100% property tax relief for a period of up to 20 years, depending on the project size and job creation.

• The incentive is tied to the increase in property value as a result of the investment.

Application Process

Businesses must apply through the local municipality and MDR, providing information about the investment and the anticipated impact on jobs and property value.