Under Governor Patrick, the Commonwealth has launched a Creative Economy Initiative and appointed a Creative Economy Industry Director in the Massachusetts Office of Business Development to work one-on-one with businesses and artists.

Services

"One Stop" Access to the range of State resources

The Massachusetts Office of Business Development (MOBD) promotes capital investment and job creation in Massachusetts. We provide your "front door" to a range of government resources - state and local incentives and relationships - to help businesses grow.

Access to parties eager to support business development

The Massachusetts Business Resource Team (BRT), an alliance of 23 partner agencies, universities, community colleges, industry associations, and regional development councils, is committed to supporting development in Massachusetts. BRT members make available region-, industry-, and needs-based expertise to companies seeking to locate or grow in our state. Coordinated by the MOBD, the BRT makes available relationships businesses need to succeed, including international trade and export assistance

Site selection assistance

The Massachusetts Alliance for Economic Development (MAED) works through its member network to develop site options for expanding businesses. MAED's no-cost services can quickly identify properties that best meet the company's key criteria.

Artistlink works with artists, artist groups, arts-minded organizations, real estate developers, municipalities, and other proponents to develop spaces for creative individuals.  Also has space finder service, including housing. www.ArtistLink.org  www.artspacefinder.org

Grants

Workforce Training Fund (WTF)

Offered by the Department of Workforce Development, the WTF provides grants to train new employees or to upgrade the skills of existing employees. Grants in the manufacturing industry have usually averaged $1,100 - $1,500 per employee, and are capped at $1 million. The WTF has no income requirements and companies applying to the program for the first time receive preference. Companies typically meet a match requirement through the salaries of employees as they provide or receive the training funded by the grant. The Commonwealth Corporation provides no-cost assistance to help ensure the quality of final application. A WTF grant requires approval of the Workforce Training Fund Board.

The Hiring Incentive Training (HIT) Grant

Offered by the Department of Workforce Development, The HIT Grant assists in paying training costs for newly hired employees who have been unemployed over a year and those that do not have a call back date from their last employer. The HIT grant may be used in addition to other training funds. The program funds up to $2,000 per employee and up to $30,000 a year per company.

Massachusetts Cultural Council's Cultural Facilities Fund

This provides Capital Grants and Feasibility and Technical Assistance Grants to promote the acquisition, design, repair, rehabilitation renovation, expansion, or construction of nonprofit cultural facilities in Massachusetts. All grants from the Fund must be matched with cash contributions from the private or public sector.

MCC's Adams Arts Program for the Creative Economy

This funds projects that create jobs and income, revitalize downtowns, and draw visitors. Only nonprofits or municipalities may apply, although they may use private sector partners.

Large Onsite Renewables Initiative (LORI)

Offered by the Massachusetts Renewable Energy Trust (MRET), LORI provides grant funding to assist with feasibility studies and design and construction of renewable energy projects, including wind energy, hydroelectric, and biomass energy. Projects must have an installed capacity of greater than 10 kilowatts and consume more than 25% of the renewable energy generated by the project onsite. Grant levels vary based on the characteristics of each project. MTC caps grants at $250,000, or 75% of project costs, whichever is lower. Grant awards are contingent on approval by the MTC Board of Directors.

Photovoltaic (PV) installation support

The Commonwealth Solar program offers $68 million over four years to encourage 27 MW of new commercial, municipal, and residential installations. Commonwealth Solar is a non-competitive rebate program with rolling availability and a simplified application and decision process.

Economic Development Incentive Program (EDIP)

EDIP is a partnership between a company, a municipality, and the state that imparts to a project:

Tax Increment Financing (TIF)

A TIF is essentially a reduction in local property tax resulting from new investment on a site, resulting from a negotiated agreement with the municipality. The discount may range from 5% up to 100% per year, on taxes resulting from project investment, for up to 20 years.

A 5% investment tax credit (ITC)

The 5% ITC applies to tangible or depreciable property with a service life of at least four years, and may be carried forward for the length of the TIF agreement, plus five years.To be eligible, the company must propose a project in a participating community that will create at least one new job and capital investment at the site. The TIF and 5% ITC become available when the state certifies the project. Over 160 cities and towns participate in the program.

Tax Incentives

Film Tax Credit

Highly competitive tax incentives for film production and digital media companies. Key provisions include: a 25% credit on all spending in state, no sales tax on production spending, no caps and no limits, and no minimum budget requirement. The credit applies to digital media production as well.  Contact the  Creative Economy Industry Director or the Massachusetts Film Office for more information.

3% Investment Tax Credit (ITC)

Companies recognized as manufacturers by the Massachusetts Department of Revenue that do not participate in the EDIP may claim a 3% ITC.

Research and Development Tax Credit

In Massachusetts, any costs which would qualify for the Federal R&D tax credit are eligible for a 10% R&D Tax Credit. This credit can be used in addition to the Investment Tax Credit and can reduce tax liability to the minimum of $456 annually. In addition, a 15% R&D Tax Credit is available for costs related to donations and contributions made to research organizations such as hospitals and universities. The R&D credit is permanent, but cannot reduce a corporation's tax liability below the minimum $456 and cannot reduce any tax liability over $25,000 by more than 75%. However, a corporation may carry forward for an unlimited period of time any portion of the R&D credit which cannot be allowed in a particular tax year because of this limit.

Single Sales Factor for Tax Apportionment

A substantial cost advantage to manufacturers is the "single sales factor" tax apportionment. For manufacturing corporations with multi-state tax filings, the single sales factor apportions state excise tax based solely on a ratio of in-state sales to total sales. Other states typically use more complicated apportionment formulas, which include the in-state sales ratio, the ratio of in-state payroll to total payroll, and the ratio of in-state property to total property. The practical implication is that these states penalize companies that hold and add tangible assets and jobs in that state.

Sales and Use Tax Credit

Massachusetts exempts all manufacturing equipment and R&D equipment from sales and use taxes. Therefore, regardless of where a company purchases this equipment, they will not pay the 5% sales tax nor the 5% use tax.

Personal Property Tax Exemption

Manufacturing corporations in Massachusetts qualify for a 100% exemption on personal property taxes taken against tangible depreciable assets, such as equipment.

Financing

(please note we are currently expanding this list and will update it soon, please call about financing)

Emerging Technology Fund (ETF)

Offered by MassDevelopment, the Emerging Technology Fund provides loans and guarantees for technology-based manufacturing facilities and equipment, focusing on companies transitioning technologies to commercialization. Loan awards may reach up to $2.5 million and are subject to approval by the MassDevelopment Board of Directors.

Citizen's Job Bank Loan Program

Offered by Citizen's Bank, this financing initiative is designed to support businesses that stimulate job growth in Massachusetts. The company must create at least one new job for each $40,000 borrowed, up to $5 million in financing at a below-market rate interest rates.