By: Lynn Tokarczyk, Government Tax Incentives Consultant, BDS
and Matthew J. Thomas, Esquire, TIF Attorney, BDS
On November 20, 2024, Governor Maura Healey signed into law Mass Leads: An Act Relative to Strengthening Massachusetts’ Economic Leadership. This nearly $4 billion package is designed to fuel growth in life sciences, climate technology, artificial intelligence, and other key industries.
A major provision of the law strengthens the Economic Development Incentive Program (EDIP), making state tax incentives potentially more valuable for real estate expansion and job creation projects. The law also modifies the approval process for Tax Increment Financing (TIF) Agreements by eliminating the need for state approval.
The tax incentive programs include:
- Municipal Tax Increment Financing (TIF)
- Municipal Special Tax Assessment (STA)
- Municipal Personal Property Tax Exemption
- State Tax Credit
Key Legislative Changes
The Mass Leads Act (Chapter 238 of the Acts of 2024) updates Massachusetts General Laws, including:
- Chapter 23A, Sections 3A–3F
- Chapter 40, Section 59
1. Municipal Authority
- Cities and towns may now negotiate and approve tax incentive agreements based on local priorities.
- A formal local approval—via Town Meeting, Town Council, or City Council vote—is still required.
2. Elimination of State Approval for TIF/STA Projects
- The Economic Assistance Coordinating Council (EACC) no longer needs to certify or approve TIF or STA agreements.
- Businesses and municipalities can finalize these agreements locally without state involvement.
3. State Tax Credit Submissions
- Projects seeking state tax credits must still be submitted to the EACC.
- Credits are awarded on a competitive basis and may be refundable, if applicable, subject to state criteria.
What These Changes Mean for Businesses
- Avoid Delays: Companies can now move real estate projects forward once local approvals are secured, avoiding delays caused by state oversight.
- Keep Projects on Track: Securing approval at the municipal level is still a heavy lift—Town Meetings can involve 200+ residents, making the process complex and often overwhelming for companies.
- Maximize Incentives: Municipal tax incentives may be combined with state credits to create significant savings.
Why It Matters
Massachusetts’ competitiveness is strengthened under the Mass Leads Act, but navigating this process requires expert guidance and strategy. At the municipal level, approvals hinge on building community support, preparing a strong case, and managing a public approval process that can make or break a project.
Timing is essential, otherwise money will be left on the table!
For assistance navigating these updates or securing tax incentives for your project, contact BDS.