Origin: The Massachusetts Economic Development Incentive Program (EDIP) authorizes corporate excise and personal income tax credits for investments in certified projects. Owners and certain lessees of eligible property within certified projects may be awarded tax credits by the Economic Assistance Coordinating Council (EACC). See M.G.L. c. 23A, §§ 3A � 3F. The EACC may award up to $30 million in credits annually and has broad discretion regarding the amounts of credits awarded within the constraints of the cap. The amount of credit awarded to a taxpayer is based on numerous factors set forth in M.G.L. c. 23A, § 3D, including the number of jobs expected to be created, the amount of capital to be invested, and the net new economic benefit expected to be created. The EACC determines the amount of the credit and provides documentation of the credit to the taxpayer and DOR.
The EACC is authorized to award both refundable and non-refundable credits, and it can determine the schedule upon which filers may claim the credit. The credit is not transferable. If a certified project is sold the EACC may allow the new owner to assume the remainder of the credit. Credits may be carried forward up to 10 years, but not more than 5 years after a project ceases to qualify under M.G.L. c. 23A.
The amount of corporate excise and personal income tax foregone as a result of the credit constitutes a tax expenditure.
Origin: M.G.L. c. 63, §38N
Corporate Excise Tax
Credits Against Tax
2.605
Economic Development Incentive Program Credit
The Massachusetts Economic Development Incentive Program (EDIP) authorizes corporate excise and personal income tax credits for investments in certified projects. Owners and certain lessees of eligible property within certified projects may be awarded tax credits by the Economic Assistance Coordinating Council (EACC). See M.G.L. c. 23A, <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter23a/Section3a" target="_blank">§§ 3A</a> � <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter23a/Section3f" target="_blank">3F</a>. The EACC may award up to $30 million in credits annually and has broad discretion regarding the amounts of credits awarded within the constraints of the cap. The amount of credit awarded to a taxpayer is based on numerous factors set forth in M.G.L. c. 23A, § <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter23a/Section3d" target="_blank">3D</a>, including the number of jobs expected to be created, the amount of capital to be invested, and the net new economic benefit expected to be created. The EACC determines the amount of the credit and provides documentation of the credit to the taxpayer and DOR.<BR><BR>The EACC is authorized to award both refundable and non-refundable credits, and it can determine the schedule upon which filers may claim the credit. The credit is not transferable. If a certified project is sold the EACC may allow the new owner to assume the remainder of the credit. Credits may be carried forward up to 10 years, but not more than 5 years after a project ceases to qualify under M.G.L. c. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter23a" target="_blank">23A.</a><BR><BR>The amount of corporate excise and personal income tax foregone as a result of the credit constitutes a tax expenditure.
M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38n" target="_blank">c. 63, §38N</a>
15.0
15.0
22.5
25.0
25.0
