Tax Incentives During the Pandemic and Beyond

As many Massachusetts businesses prepare for returning to the workplace, plans may include physical growth and expansion. During the COVID-19 pandemic, a number of Massachusetts companies have experienced increased demand for their products. Biomanufacturers, technology firms, food, beverage, and pet food suppliers, and distribution services are among the sectors seeing a significant uptick in customer demand. For many companies, one option to meet that growing demand is a physical expansion, which can be costly and time consuming. But there is good news. Businesses contemplating expansion in Massachusetts may qualify for tax incentives, enabling them to save thousands – even millions – of dollars.

Companies making a financial investment as part of their expansion plan may qualify for tax incentives under the State Economic Development Incentive Program (EDIP). Tax incentives may be available if there are plans to retain or create jobs, renovate a leased or purchased building or construct a new building. The available tax incentives may include:

  • State EDIP Credit
  • State 10% Abandoned Building Tax Deduction
  • Municipal Tax Increment Financing (TIF)
  • Municipal Personal Property Tax Exemption or
  • Municipal Special Tax Assessment (STA)

Once the available incentives have been identified, the company must receive approval from various municipal boards and committees, the city council or town meeting and eventually, the state.

Many of the state’s most respected businesses have realized long-term financial benefits from government tax incentives. Both publicly held and privately-owned businesses have received valuable incentive packages for growth.

Taking the time to learn about, apply for and secure government tax incentives for your company’s expansion is an important step towards keeping your business on track to success.