Press Release  Massachusetts Unveils Major Reforms to Economic Development Incentive Program

Boston — The Healey-Driscoll Administration today announced a comprehensive redesign of the Economic Development Incentive Program (EDIP), Massachusetts’ flagship business development tool that offers state tax credits in exchange for a business’s commitment to invest in the state and create or retain jobs.

Driven by reforms under the Mass Leads Act, the new EDIP increases flexibility, transparency, and access for businesses of all sizes and stages, making Massachusetts more competitive in attracting and retaining companies in key growth sectors.

“This is about making it easier and faster for businesses to invest in Massachusetts,” said Governor Maura Healey. “We’re proud to launch a modernized EDIP that removes unnecessary barriers and empowers businesses, especially innovative and early-stage companies, to grow and create jobs in every region of the state.”

“These reforms are a direct response to feedback from businesses and communities,” said Lt. Governor Kim Driscoll. “By simplifying the process and expanding eligibility, we are making sure more companies – including those in rural areas, Gateway Cities, and emerging sectors – can access the resources they need to grow here in Massachusetts.”

Among the most significant changes:

• Elimination of the $5 million annual cap on refundable tax credits, enabling more early-stage, high-growth companies to participate, even if they are not yet profitable.
• Consolidation of the two-step application into a single, streamlined application with 60% fewer questions.
• Introduction of a new Request for Proposals (RFP) document that clearly outlines program eligibility, evaluation criteria, and award processes.

The program is designed to reach all corners of the state and support businesses in high-growth sectors such as artificial intelligence, climatetech, advanced manufacturing, and robotics with an emphasis on projects located in Gateway cities, small towns and areas with significant potential for economic growth. EDIP continues to offer tax credits based on job creation and investment levels. Award recommendations typically range from $10,000 to $15,000 per job created or retained and factor in project location, industry sector, job quality, and the strategic value of the investment.

“We’ve listened to businesses and municipalities alike and acted to create a more inclusive, responsive and competitive program,” said Economic Development Secretary Yvonne Hao. “The redesigned EDIP is a powerful tool to accelerate economic growth and attract more businesses to join Team Massachusetts.”

“Massachusetts is doubling down on its strengths – talent, innovation, and opportunity – and EDIP is key to that strategy,” said Undersecretary of Economic Foundations Ashley Stolba. “We’ve removed red tape and created a smarter, more accessible program that’s built to meet the needs of today’s businesses.”

For more information about the new EDIP process , visit https://www.mass.gov/info-details/economic-development-incentive-program-edip.

About the Massachusetts Office of Business Development
The Massachusetts Office of Business Development (MOBD) in the Executive Office of Economic Development assists businesses expanding in and relocating to Massachusetts, with specific attention paid to projects that create and retain jobs and invest capital. The MOBD team provides a highly responsive, central point of contact that facilitates access to resources, expertise, and incentive programs for businesses.

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