The Economic Development Incentive Program (EDIP) has a 20-year track record of successfully attracting and retaining businesses, creating net-new jobs and leveraging billions of dollars of private investment in the Commonwealth. The Economic Assistance Coordinating Council (EACC) may consider the following 5 categories of Certified Projects: Expansion Projects, Enhanced Expansion Projects, Manufacturing Retention & Job Growth Projects, Job Creation Projects and Local Incentive Only Projects which can be either a Tax Increment Financing Only Project or Special Tax Assessment Only Project.  See below for minimum eligibility requirements of each project type and consult with the appropriate MOBD Regional Director.  

Disclaimer: EDIP Investment Tax Credits are granted at the discretion of the EACC.  Determination of alignment with the minimum eligibility requirements qualifies the applicant to apply for certification under the EDIP, but does not contract the EACC or the Commonwealth of Massachusetts to enter into a Tax Incentive Agreement with said applicant.

 
Eligibility Requirements for Expansion Projects (EP):

  • Job Creation: There is no minimum or maximum number of full-time jobs that must be created.
  • Capital Investment:  The Applicant must be making a significant capital investment to utilize the EDIP Investment Tax Credit.
  • Industry Requirements: None.
  • Geographical Requirements: An Expansion Project can be located in any of the Commonwealth’s 351 cities and towns. A project that is applying to be located in a Gateway or Middle Tier Community (See: EDIP Municipality Location Analysis pdf format of EDIP Municipality Location Analysis
) will receive preference in the awarding of EDIP-ITC, however, projects located in all communities are invited to apply.
  • Substantial Out-of-State Sales Requirement: The project site must generate substantial out-of-state sales.
  • Municipal Involvement: Expansion Projects must have an approved & executed municipal real estate property tax exemption (either Tax Increment Financing Agreement or Special Tax Assessment) in submitting an application to the EACC.  In most cases, the local incentive agreement and Certified Expansion Project application are considered concurrently by the EACC.


Eligibility Requirements for Enhanced Expansion Projects (EEP):

  • Job Creation: The Applicant must create a minimum of 100 full-time net-new to Massachusetts jobs within 2 years of approval by the EACC.  
  • Capital Investment:  The Applicant must be making a significant capital investment to utilize the EDIP Investment Tax Credit.
  • Industry Requirements: None.
  • Geographical Requirements: An Enhanced Expansion Project can be located in any of the Commonwealth’s 351 cities and towns; however the EACC is annually limited by statute in the approval of EEPs.
  • Substantial Out-of-State Sales Requirement: The project site must generate substantial out-of-state sales.
  • Municipal Involvement: Enhanced Expansion Projects must be supported by the municipality of the project; however the municipality is not required to offer a local incentive.  If a municipality is within an Economic Target Area and is unable to offer a local incentive, they should submit a letter to the EACC stating that the municipality will not increase the assessment of real property taxes on the project property for a period of not less than 5 years.


Eligibility Requirements for Manufacturing Retention & Job Growth Projects (MRP):

  • Job Creation: The Applicant must create a minimum of 25 net-new to Massachusetts full-time manufacturing positions and/or retain a minimum of 50 full-time manufacturing jobs.
  • Capital Investment: The Applicant must be making a significant capital investment to utilize the EDIP Investment Tax Credit.
  • Industry Requirements: The Applicant must be a manufacturer as defined by the Massachusetts Department of Revenue 830 CMR 58.2.1. Additionally, the project site must be a manufacturing facility.
  • Geographical Requirements: Must be located within a Gateway City.
  • Substantial Out-of-State Sales Requirement: The project site must generate substantial out-of-state sales.
  • Municipal Involvement: Manufacturing Retention & Job Growth Projects must be supported by the municipality of the project; however the municipality is not required to offer a local incentive.  If a municipality is unable to offer a local incentive, they should submit a letter to the EACC stating that the municipality will not increase the assessment of real property taxes on the project property for a period of not less than 5 years.


Eligibility Requirements for Job Creation Projects (JCP)

  • Job Creation: The Applicant must create a minimum of 100 full-time net-new to Massachusetts jobs within 2 years of approval by the EACC.  
  • Capital Investment:  A significant private investment is not required. Applicants will be considered for the JCP Credit if they are ineligible for other project types due to the capital investment requirements.
  • Industry Requirements: None.
  • Geographical Requirements: A Job Creation Project can be located in any of the Commonwealth’s 351 cities and towns.
  • Substantial Out-of-State Sales Requirement: The project site must generate substantial out-of-state sales.
  • Municipal Involvement: Job Creation Projects do not require a local incentive. 
  • The Credit: Projects that are certified as Job Creation Projects are eligible for up to $1,000 per new job created and up to $5,000 per new job created in a Gateway City, capped at $1million.


Eligibility Requirements for Tax Increment Financing (TIF) Only Projects:

  • Job Creation: Job creation requirements are at the discretion of the municipality.
  • Capital Investment:  The applicant must be making a significant capital investment that increases the assessed value of the real property.
  • Industry Requirements: Industry requirements are at the discretion of the municipality.
  • Geographical Requirements: A Tax Increment Financing Only or Special Tax Assessment Only Project can be located in any of the Commonwealth’s 351 cities and towns.
  • Substantial Out-of-State Sales Requirement: Not Applicable.
  • Municipal Involvement: Tax Increment Financing Agreements are municipal property tax incentive agreements that must be are approved by town meeting or city council prior to review by the Economic Assistance Coordinating Council.