09.01.14 |
SHARE   |  

Massachusetts Enacts New Economic Development Incentives

On August 13, 2014, Massachusetts Governor Deval Patrick signed into law An Act to Promote Economic Growth in the Commonwealth, which adds new income tax credits to Massachusetts’ suite of economic incentives and expands funding for some existing incentives.

MassachusettesThe Act introduces a new income tax credit for job creation projects approved by the Economic Assistance Coordinating Council.  An approved project will be eligible for a credit of up to $1,000 per new job created, or up to $5,000 per new job created in a gateway municipality or a  in a city or town whose unemployment rate exceeds published state averages.  The maximum amount of award per certified project is $1,000,000.  To be eligible, a job creation project must generate a net increase of at least 100 permanent full-time jobs within 2 years after project certification, and such jobs must be maintained for at least five years.  The project must also generate substantial sales from outside of Massachusetts.

Other tax incentive initiatives contained in the Act include the following:

  • Effective for tax years beginning on or after January 1, 2015, the Massachusetts research credit is modified to give eligible taxpayers a choice between (1) a revised regular credit and (2) an alternative simplified research credit.  The alternative credit will be phased in over a seven-year period. 
  • The Act includes $12 million in funding for a middle skills job training grant fund to support manufacturing, mechanical, and technical skills.    The fund will be adminstered in consultation with various government agencies including the Department of Higher Education and the Massachusetts Technology Park Corporation.

 

 

 


TAGS  

1-855-864-1712

Sign Up for
Email Updates

featured webinar