Businesses renovating eligible buildings in Economic Opportunity Areas may deduct 10% of the cost of renovation from gross income. This deduction may be in addition to any other deduction for which the cost of renovation may qualify. To be eligible for this deduction, renovation costs must relate to buildings designated as abandoned by the Economic Assistance Coordinating Council.
Previously, the deduction was available only for improvements to abandoned buildings located in Economic Opportunity Areas ("EOA"), as designated by the EACC. However, in 2016, the legislature enacted An Act Relative To Job Creation And Workforce Development, which eliminated the EOA requirement, and inserted the requirement that the EACC need only "certify" a project. These changes are effective for tax years beginning on or after January 1, 2019.
Origin: M.G.L. c. 62, § 3(B)(a)(10)
Personal Income Tax
Deductions from Gross Income
1.204
Abandoned Building Renovation Deduction
Businesses renovating eligible buildings in Economic Opportunity Areas may deduct 10% of the cost of renovation from gross income. This deduction may be in addition to any other deduction for which the cost of renovation may qualify. To be eligible for this deduction, renovation costs must relate to buildings designated as abandoned by the Economic Assistance Coordinating Council.<BR><BR>Previously, the deduction was available only for improvements to abandoned buildings located in Economic Opportunity Areas ("EOA"), as designated by the EACC. However, in 2016, the legislature enacted An Act Relative To Job Creation And Workforce Development, which eliminated the EOA requirement, and inserted the requirement that the EACC need only "certify" a project. These changes are effective for tax years beginning on or after January 1, 2019.
<a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section3" target="_blank">M.G.L. c. 62, § 3(B)(a)(10)</a>
0.1
Negligible
Negligible
Negligible
Negligible
