Economic Development Incentive Program (EDIP)

The Economic Development Incentive Program (EDIP) is a tax incentive program designed to stimulate business growth and foster job creation throughout the Commonwealth.  Through this incentive program, a three way partnership is developed between the state, a growing company, and a municipality.  Participating companies may receive state and local tax incentives in exchange for job creation and private investment commitments. 

The Program
The EDIP was created as a tool to attract and retain businesses in specific economic target areas (ETA ). There is a three step process within the program, and each step must receive local approval as well as state approval by the Economic Assistance Coordinating Council (EACC).

The Three Steps
An Economic Target Area (ETA) is three, or more contiguous census tracts, in one or more municipalities, meeting one of eleven statutory criteria for economic need.  There are ETA locations throughout the Commonwealth. 

An Economic Opportunity Area (EOA) is an area or several areas within a designated ETA of particular need and priority for economic development. These areas are selected by the individual communities, and must meet one of four statutory criteria for designation by the EACC. 

After an ETA and an EOA have both been established, a growing company may apply for Certified Project status. A Certified Project is a business that is expanding its existing operations, relocating its operations, or building new facilities and creating permanent new jobs within an EOA.

Prospective candidates can work with the Massachusetts Office of Business Development throughout the application process (including the process for ETA and EOA designation). 

Eligibility Requirements

The prospective Certified Project must:

• Be expanding or locating in Massachusetts
• Be located in an ETA
• Be located within an EOA within the ETA
• Commit to a job creation schedule
• Commit to private investment within Massachusetts 

Terms and Conditions
Certified Projects in the EDIP  may receive state tax incentives, including a 5% investment tax credit (known as the Economic Opportunity Area Credit) for qualifying tangible, depreciable assets. 

• A 10% abandoned building tax deduction is available for costs associated with the renovation of an abandoned building. The abandoned building must have been at least 75% vacant for the last two years.
• Certified Projects in the EDIP qualify for municipal tax incentives including either a Special Tax Assessment or a Tax Increment Financing Agreement

Western Massachusetts Economic Target Areas

Hampden County  

Brimfield   
Chicopee
Holland  
Holyoke
Monson  
Palmer  
Russell   
Springfield    
Wales   
West Springfield  
Westfield

Hampshire County

Amherst
Belchertown
Easthampton
Hatfield
Northampton
South Hadley
Ware