Job Creation
Type: Tax Credit
Agency: Mass. Office of Business Development
The Economic Development Incentive Program is a competitive tax incentive program designed to foster full-time job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state and local tax incentives in exchange for full-time job creation, job retention (Gateway Cities Only), and private investment commitments. Projects require approval of the Massachusetts Economic Assistance Coordinating Council (EACC). The EACC is a state board comprised of public and private sector officials which reviews and makes determinations on EDIP Projects. The Board evaluates a project based on the project’s economic impact, considering such factors as industry, location, private investment, job creation and job retention. The EACC’s administrative arm is the Massachusetts Office of Business Development, whose 6 regional directors provide a centralized source of information for businesses and municipalities and can help companies applying to the program as well as other state resources.
Type: Real Estate Tax Reduction
Agency: Municipal; Mass. Office of Business Development
Tax Incentive Financing (TIF) is a negotiated agreement between the business and the municipality. The percentage exemption applies to the incremental increase of assessed value of the property. The business pays the full tax rate on the “base value.” The agreement can include exemptions on personal property as well. Term is a minimum of 5 years and a maximum of 20 years. The percentage of exemption may range from 5% to 100%. Special Tax Agreement (STA) is also a negotiated agreement between the business and the municipality. Current as well as future incremental real estate taxes are exempted as follows: Year 1 – 50%; Year 2 & 3 – 50%; and Year 4 & 5 - 5%. Thereafter, the business pays 100%.
Workforce Development
Type: Grant
Agency: Commonwealth Corp.
The WTFP provides grants to MA businesses to fund training for current and newly hired employees. In order to qualify, businesses must pay into the Fund. The program is targeted to small or medium-sized businesses that would not be able to invest in improving employee skills without the WTFP. The WTFP has three programs: General Program Training Grants, Express Grant Program, and Direct Access Program as well as Technical Assistance Grants.
Type: Grant
Agency: Commonwealth Corp.
Open to all business sizes, this program offers businesses grants of up to $250,000 in skills training for current and newly hired workers. Employers, employer organizations, labor organizations, training providers, and a consortia of such entities are encouraged to apply. Training programs must be completed within two years and applicants can use the training provider of their choice.
Type: Grant
Agency: Commonwealth Corp.
The program addresses smaller-scale training needs by making training slots available free of charge to businesses that are eligible for the WTFP. Businesses should consider the pilot program when training needs cannot be easily met by a consortium or Express Program grant.
Type: Recruiting Assistance
Agency: Mass Office of Labor and Workforce
The Commonwealth’s network of centers are capable of providing a business with: access to qualified candidates, applicant pre-screening, posting of jobs, assistance with small and large-scale recruitment activities, help planning job fairs and testing and assessment of candidates.
Research & Innovation Support
Type: Tax Credit
Agency: Mass. Office of Business Development
This program, designed after the federal credit program, offers a tax incentive for R&D investment for both manufacturers and R&D companies. The credit is divided into two categories, a 10% credit for qualified expenses and a 15% credit for basic research payments to research organizations such as hospitals and universities.
Type: Program
Agency: Partnership
Created in partnership with the Commonwealth and the MITRE Corporation, the Massachusetts Innovation Bridge connects local businesses, nonprofits, and academic institutions with federal opportunities. Through the Innovation Bridge, federal agencies will create new relationships with innovative academic institutions, though leaders, established companies, and with companies that previously did not work with the federal government. Together, they will discover innovative ideas, products, and services to enhance federal agency missions.
Financing
Type: Loan
Agency: Mass. Growth Capital Corp.
Loans made in conjunction with bank financing. Typically, the bank will have a senior position on assets and MGCC will be in a subordinated position. These loans are usually written as 5 year Term Loans.
Type: Loan
Agency: Mass. Growth Capital Corp.
When a company needs to receive partial advances of loan proceeds to meet working capital needs, such as for a seasonable business, a one year Line of Credit may be appropriate. A Line of Credit may be renewed for a second year or may be converted to a Term Loan.
Type: Loan
Agency: Mass. Growth Capital Corp.
Working capital requirements are not often easily handled within one year. Cash flow is typically insufficient to repay all but the smallest loan in a year. Five year Term Loans therefore provide a useful time frame – long enough for cash flow to increase and to allow MGCC to be repaid.
Type: Loan
Agency: Mass. Growth Capital Corp.
Winning a contract or a purchase order usually requires a firm to support labor, materials and overhead cost before billing and being paid for the work. Contract and Purchase Order financing can bridge this timing gap. Typically, a percent of the order value will be loaned, and repaid when the firm receives payment.
Type: Loan Guarantee
Agency: Mass. Growth Capital Corp.
If a bank cannot extend needed credit because the collateral is inadequate, MGCC can provide a partial and limited Guarantee to enable the bank to make the loan.
Type: Loan
Agency: MassDevelopment
Working capital can be provided for most business operational purposes. Not typically finance real estate development.
Type: Loan and Guarantee
Agency: MassDevelopment
The Emerging Technology Fund (ETF) provides MA startups or emerging tech companies with financing for working capital, manufacturing facilities, and equipment. The ETF specifically offers: loans up to $2.5M and loan guarantees up to $1M. Eligible companies must be starting or expanding manufacturing operations in MA, market demand, and proven fundraising, among other requirements.
Type: Loan
Agency: MassDevelopment
For companies expanding operations and need to purchase equipment. The program offers loans up to $2M, fixed rate financing, and loan advance rates up to 85% of the cost of new equipment. Exporters may receive 100% financing for new equipment.
Type: Loan
Agency: MassDevelopment
MassDevelopment offers real estate loans to help fund facility acquisition, renovation, construction, and permanent financing up to $7.5M. This is great for manufacturers, small businesses, and nonprofits.
Type: Loan
Agency: Mass. Growth Capital Corp.
This program can provide professional services to small businesses in need of solutions to financial and operational challenges.
Type: Loan
Agency: MassDevelopment
MassDevelopment provides Manufacturing Planning Loans up to $50,000 with low interest rates and terms of up to five years. Loans can be used by manufacturing companies to pay for consultant services. Eligible consultant contracts include services to evaluate and improve demand (sales and marketing), fulfillment (operations improvement), and finance and administration (strategic leadership).
Sales
Type: Tax Credit
Agency: Mass. Office of Business Development
Massachusetts single weights sales when assessing apportionment taxes for manufacturers. The single sales factor apportionment is the ratio of Massachusetts sales to overall sales. Net income subject to Massachusetts tax is determined by multiplying overall net income by the apportionment factor. Many other states use three-factor apportionment which weighs the state sales, property and payroll as a percent of overall sales, property and payroll. This is advantageous for companies with significant property and employees, as it won’t be a factor in determining the amount of tax. Additionally, this provision does not penalize companies for continual investment in the business or for hiring more employees.
Type: Tax Credit
Agency: Mass. Office of Business Development
Massachusetts exempts all manufacturing equipment and all R&D equipment from sales and use taxes.
Capital Investment
Type: Capital Grants
Agency: MassTech
M2I2 provides cost shares for projects and discovery centers located within the Commonwealth's borders, as part of the state's on-going commitment to the Manufacturing USA program put forth by the federal government. Entities may apply for a cost share grant from the Commonwealth of Massachusetts for projects within the AFFOA, AIM Photonics, NextFlex and ARM Institutes, related to the federal Manufacturing USA program.
Type: Tax Credit
Agency: Mass. Office of Business Development
Eligible companies can claim a 3% ITC on depreciable assets as a DOR registered manufacturer. Manufacturing entities most likely will be eligible to take advantage of the 3% Investment Tax Credit. The credit is calculated by computing 3% of the total capital investment in qualified equipment and facility leasehold improvements. This amount can be applied directly against any Massachusetts tax obligation. The maximum amount of credits, otherwise allowable in any one taxable year to a corporation, may not exceed fifty per cent of its excise. A corporation may carry over and apply to its excise for one or more of the next succeeding three taxable years the portion of those credits, as reduced from year to year.
Collaborative Workspaces
Type: Innovation Center
Agency: Private
Manufactures precision machined and sheet metal fabricated products in a wide variety of materials. Our engineering services at the prototype level can provide cost efficient solutions for manufacturability in production. Value added capabilities in both mechanical and electro-mechanical assemblies are available to complete your product for market.
Type: Innovation Center
Agency: Private
Provides the product development, engineering, and manufacturability expertise – along with product development software and infrastructure – to commercialize successful products in today’s competitive market.
Type: Innovation Center
Agency: Non Profit
Machining processes, additive manufacturing (metals, 3D plastics), and reverse engineering solutions to help companies run better, faster, and more efficiently by integrating technologies that increase productivity without disrupting your current operations.
Type: Innovation Center
Agency: Higher Education
Consulting services in financial modeling, equipment justification, technical analysis, commercialization, and process development, utilizing faculty, alumni, undergraduate and graduate students in engineering and management.
Real Estate
Type: Relocation Services
Agency: Non Profit
MassEcon is a nonprofit specializing in on-the-ground services to companies seeking to expand within or relocate to Massachusetts. MassEcon also engages with prospective businesses at tradeshows across the nation to help sell Massachusetts.