Massachusetts Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Massachusetts, and their state economic development professionals gave us some details (mass.gov ecdev site click here).
Massachusetts offers a selection of credits and incentives for new and existing businesses, mainly geared toward larger projects.  CNBC ranked Massachusetts #20 in their 2015 America’s Top States for Business survey (Georgia was #5 in the same survey).    
Incentives and Credits include:
The Economic Development Incentive Program (EDIP) — Includes the categories of Certified Expansion Project (EP), Enhanced Expansion Project (EEP), and Manufacturing Retention Project (MRP).  Involves up to a 10% EDIP- Investment Tax Credit (ITC) and local incentives.  Massively complex process, and   pre-approval is always required, of course.

Job Creation Incentive Program — Qualifying biotechnology and medical device manufacturing companies are eligible to receive incentive payments for new job creation.  Create 10 or more eligible jobs in the Commonwealth during a single calendar year.

Other Tax Credits — Credits for Investment (manufacturing, research, some others), Research and Development (similar to other states), and other special and assorted incentive programs.

Compared to Georgia, Massachusetts has:
  • Much higher corporate and higher personal income tax rates.
  • Higher combined state and local tax burden
  • A narrower range of incentives.
  • Pre-approval required for all incentives
To summarize, Massachusetts is below average for business tax incentives,but they do enjoy a prime Northeast location.

DaleSig