Overview

The Economic Development Incentive Program (EDIP) is a state and local tax incentive program that can significantly reduce the cost of doing business for companies expanding or locating in Massachusetts.

How It Works

The EDIP program is a three-way partnership between the state, a municipality within an Economic Target Area (ETA), and a growing company. First, the company and the municipality must agree to a tax exemption schedule on future incremental real property taxes – a local tax reduction. The company then obtains state approval for a 5% investment tax credit – a state income tax reduction. In turn, the company commits to a job growth and private investment schedule. The duration of this incentive may range from 5 to 20 years.

Advantages

The Economic Development Incentive Program offers several key advantages to growing companies. Most notably, the program reduces the financial burden required to grow a company. The EDIP program is also highly flexible, allowing variable local tax exemption structures and agreement durations. Finally, the
investment tax credit carry forward period is 5 years beyond the duration of the agreement.

Eligibility

Any Massachusetts employer or prospective employer, located in or moving to an Economic Target Area within the Commonwealth of Massachusetts is eligible for the Economic Development Incentive Program. Contact a member of the Massachusetts Business Resource Team to learn more.