Economic Development Incentive Program (EDIP)
Type: Tax Credit
Agency: Mass. Office of Business Development
The EDIP, capped at $25M annually, provides eligible companies with state and local tax incentives in exchange for projects promising job creation, manufacturing retention, private investment, and out-of-state sales commitments. There are 5 types of EDIP projects: Expansion Projects (EP), Enhanced Expansion Projects (EEP), Manufacturing Retention & Job Growth Projects (MRP), Job Creation Projects (JCP), and Local Incentive Only Projects. These programs require the approval of the Economic Advisory Coordinating Council (EACC) which meets quarterly. There were significant changes to these programs as a result of a recent change in the governing statute. In January the EACC will be amending its policies to reflect the impact of the new law.
Local Only Incentive Programs: TIF & STA's
Type: Real Estate Tax Reduction
Tax Incentive Financing (TIF) is a negotiated agreement between the business and the municipality. The percentage exemption applies to the incremental increase of assessed value of the property. The business pays the full tax rate on the “base value.” The agreement can include exemptions on personal property as well. Term is a minimum of 5 years and a maximum of 20 years. The percentage of exemption may range from 5% to 20%. Special Tax Agreement (STA) is also a negotiated agreement between the business and the municipality. Current as well as future incremental real estate taxes are exempted as follows: Year 1 – 100%; Year 2 – 75%; Year 3 – 50% and Year 4 – 25%. Thereafter, the business pays 100%.
Workforce Training Fund Program (WTFP)
Agency: Commonwealth Corp.
The WTFP provides grants to MA businesses to fund training for current and newly hired employees. In order to qualify, businesses must pay into the Fund. The program is targeted to small or medium-sized businesses that would not be able to invest in improving employee skills without the WTFP. The WTFP has three programs: General Program Training Grants, Express Grant Program, and Direct Access Program as well as Technical Assistance Grants.
One-Stop Career Centers
Type: Recruiting Assistance
Agency: Mass Office of Labor and Workforce
The Commonwealth’s network of centers are capable of providing a business with: access to qualified candidates, applicant pre-screening, posting of jobs, assistance with small and large-scale recruitment activities, help planning job fairs and testing and assessment of candidates.
For companies expanding operations and need to purchase equipment. The program offers loans up to $2M, fixed rate financing, and loan advance rates up to 85% of the cost of new equipment. Exporters may receive 100% financing for new equipment.
Real Estate Loan
MassDevelopment offers real estate loans to help fund facility acquisition, renovation, construction, and permanent financing up to $7.5M. This is great for manufacturers, small businesses, and nonprofits.
Type: Relocation Services
Agency: Non Profit
MassEcon is a nonprofit specializing in on-the-ground services to companies seeking to expand within or relocate to Massachusetts. MassEcon also engages with prospective businesses at tradeshows across the nation to help sell Massachusetts.