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- Appendix A
- Appendix D
2.605 -EDIP/Economic Development Incentive Program Credit
|2.605||EDIP/Economic Development Incentive Program Credit
Pursuant to G.L. c. 62, S. 6(g) and G.L. c. 63, S. 38N, individuals and entities investing in qualified property for use exclusively in a certified project are entitled to a credit against tax for a percentage of the cost of the property. The credit is a key component of the Economic Development Incentive Program (EDIP) established pursuant to G.L. c. 23A. To be certified, the Economic Assistance Coordinating Council (EACC) must approve a project. The total dollar amount of the EDIPC that may be used in a calendar year is $25 million. Included in the $25 million annual cap are amounts (up to $5 million) awarded pursuant to the certified housing development program authorized by G.L. 40V.
For projects certified prior to January 1, 2010: The project must be in an economic opportunity area and the credit is 5% of the cost of qualifying property. To qualify for the 5% credit, the property must be used exclusively in a certified project in an Economic Opportunity Area. The credit may be carried forward for up to 10 years with certain restrictions.
For projects certified after January 1, 2010: Sections 21 to 24 and 47 of chapter 166 of the Acts of 2009 made significant changes to EDIP. Under the amended provisions of the EDIP, the EACC may authorize taxpayers participating in certified projects to claim tax credits up to 40% of the cost of qualifying property. The EDIPC for manufacturing retention projects, if authorized by the EACC, may be refundable "at the option of the taxpayer". If the credit balance is refunded to the taxpayer, the carryover provisions shall not apply. This credit is not transferable.
Insurance companies, financial institutions, and public utilities, which do not belong to regular corporate tax types, are also allowed to apply for this credit.
Origin: M.G.L. c. 63, S. 38N
|IRC||Federal Internal Revenue Code (26 U.S.C.)|
|M.G.L.||Massachusetts General Laws|
|U.S.C||United States Code|
|ESTIMATES||All estimates are in $ millions.|
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