Under the provisions of the Economic Development Incentive Program (EDIP) established pursuant to M.G.L. c. 23A, the Economic Assistance Coordination Council (EACC) may authorize taxpayers participating in certified projects to claim tax credits under M.G.L. Ch. 62 § 6(g) and M.G.L. Ch. 63 § 38N. To be eligible, a project must be certified by EACC. The total dollar amount of the EDIP credit that may be authorized in a calendar year is $30 million. From 2011 to 2016, the annual cap included amounts awarded pursuant to the certified housing development program authorized by G.L. c. 40V. See item 2.622.

For projects certified prior to January 1, 2010:
The certified project must be in an economic opportunity area and the credit is 5% of the cost of any property that qualified for the investment tax credit (ITC) allowed by G.L. c. 63, § 31A. To qualify for the 5% credit, the property must be used exclusively in a certified project within an economic opportunity area. The credit may be carried forward for up to 10 years or indefinitely with certain restrictions. The credit is neither transferable nor refundable.

For projects certified on or after January 1, 2010 and before January 1, 2017: The EDIP credits must be awarded by the EACC and those credits are no longer limited to 5% of the cost of qualifying property(could be up to 40% of the cost of qualifying property). Further, it was no longer required that all certified projects be in an economic opportunity area. The EDIP credit for certain projects, if authorized by the EACC, may be refundable at the option of the taxpayer. This credit is not transferable.

For job creation projects certified on or after January 1, 2015 and before January 1, 2017:
The EDIP credit provisions have been expanded to include certified job creation projects. Individuals and entities pursuing certified job creation projects may be awarded a credit of up to $1,000 per job created (up to $5,000 is some instances) The total award per project may not exceed $1 million. The credit for a certified job creation project is allowed for the year subsequent to that in which the jobs are created.

For projects certified on or after January 1, 2017:
The amount of credit is determined by the EACC based on factors set out in M.G.L. c. 23A, § 3D. In addition, there are no limitations on the maximum amount of the credit awarded. The EACC may designate the credit as refundable for any certified project (subject to a $5 million limitation per year) and may specify the timing of the refund. For further information, see TIR 16-15. The credit is not transferable.

Finally, "An Act Relative to Economic Development in the Commonwealth" authorizes EACC to establish a program to incentivize businesses to occupy vacant storefronts in downtown areas. Pursuant to this program, the EACC may award up to $500,000 of available EDIP tax credits annually to businesses that occupy previously vacant storefronts. The businesses will not be required to invest in improvements or create new jobs. Rather, the businesses need only commit to occupying the previously vacant storefront for a period of not less than one year. These changes are effective for tax years beginning on or after January 1, 2019. See TIR 18-13 for details.

Origin: M.G.L. c. 63, § 38N

Item Number
FY2017
FY2018
FY2019
FY2020
FY2021
2.605
25.1
21.2
18.6
27.0
27.7
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Download the2.605 Economic Development Incentive Program Credit data