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Housing and Economic Development

Economic Development Incentive Program (EDIP)

The Economic Development Incentive Program (EDIP) is a tax incentive program designed to stimulate business growth and foster job creation throughout the Commonwealth.  Through this incentive program, a three way partnership is developed between the state, a growing company, and a municipality.  Participating companies may receive state and local tax incentives in exchange for job creation and private investment commitments. 


The Program
The EDIP was created as a tool to attract and retain businesses in specific economic target areas (ETA ). There is a three step process within the program, and each step must receive local approval as well as state approval by the Economic Assistance Coordinating Council (EACC). The EACC is a public-private body compromised of eleven members consisting of “ex officio” members and Governor appointed members. The EACC is responsible for designating Economic Target Areas (ETA), Economic Opportunity Areas (EOA ), and Certified Projects – the three steps in the Economic Development Incentive Program.  Click here for EACC Meetings Schedule.


The Three Steps
An Economic Target Area (ETA) is three, or more contiguous census tracts, in one or more municipalities, meeting one of eleven statutory criteria for economic need.  There are ETA locations PDF throughout the Commonwealth. 
An ETA  must first be approved by the local level, and then presented to the EACC for approval. 

An Economic Opportunity Area (EOA) is an area or several areas within a designated ETA of particular need and priority for economic development. These areas are selected by the individual communities, and must meet one of four statutory criteria for designation by the EACC. 
Click here for  EOA Qualification Criteria. Word

After an ETA and an EOA have both been established, a growing company may apply for Certified Project status. A Certified Project is a business that is expanding its existing operations, relocating its operations, or building new facilities and creating permanent new jobs within an EOA.

Prospective candidates can work with respective Regional Directors of the Massachusetts Office of Business Development (MOBD) throughout the application process (including the process for ETA and EOA designation). 


Eligibility Requirements
The prospective Certified Project must:

  • Be expanding or locating in Massachusetts
  • Be located in an ETA
  • Be located within an EOA within the ETA
  • Commit to a job creation schedule
  • Commit to private investment within Massachusetts 


Terms and Conditions
Certified Projects in the EDIP may receive state tax incentives, including a 5% investment tax credit (known as the Economic Opportunity Area Credit) for qualifying tangible, depreciable assets. 

  • A 10% abandoned building tax deduction is available for costs associated with the renovation of an abandoned building. The abandoned building must have been at least 75% vacant for the last two years.
  • Certified Projects in the EDIP qualify for municipal tax incentives including either a Special Tax Assessment or a Tax Increment Financing Agreement


How to Apply
Contact your Regional Director from the Massachusetts Office of Business Development (MOBD) vis contact list.  The Regional Directors can lead the three way partnership between the state, growing company, and municipality.


Required Forms

Note: FY09 EDIP Annual Reporting - online system has been addopted.
If you need help, please for more details contact:
Brenda Reynolds
EDIP Coordinator
617-788-3634
brenda.reynolds@state.ma.us

External Resources/Helpful links 
Department of Revenue

Applicable Regulations/Statutes  

Contact Information:
Brenda Reynolds
EDIP Coordinator
MA Office of Business Development
617-788-3634
brenda.reynolds@state.ma.us