TAX CREDITS
The Economic Development Incentive Program (EDIP): Projects meeting certain employment and/or location criteria can qualify for a tax credit of up to 10% of new investment. Manufacturing projects creating at least 100 new jobs can qualify for a 40% credit (refundable).
Massachusetts Investment Tax Credit (ITC): Provides manufacturers, certain R&D corporations and corporations engaged primarily in agriculture or commercial fishing with a 3% credit against their Corporate excise tax.
Research and Development Tax Credit: Provides qualifying companies a tax credit equal to 10% for Qualified Expenses defined as any research expense incurred which would qualify for the Federal R&D tax credit and a Basic Research Payments Credit. The credit can be taken in conjunction with the state’s Investment Tax Credit or Economic Development Incentive Program. Unlike some of the other credits, the R&D tax credit may reduce the corporation’s tax to the minimum tax of $456.
CASH PAYMENTS
Job Creation Incentive Program: Biotechnology and medical device manufacturing companies are eligible to receive incentive payments for new job creation. To qualify, the company must create 10 or more eligible jobs during a single calendar year to be entitled to an incentive payment equal to 50% of the eligible jobs' salary multiplied by the applicable income tax rate of the newly hired persons.
LOCAL INCENTIVES
Tax Increment Financing (TIF): Municipalities have the authority to grant tax abatements for up to 20 years.
TAX EXEMPTIONS
Sales & Use Tax Exemptions: All machinery, replacement parts, and materials used by manufacturing and R&D corporations in research and development are exempt.
CASE STUDY
