The Town of Bedford’s Economic Development Office has compiled a list of relevant tax credits and other incentives that you may find helpful as you embark on your new venture or plan improvements to your existing business. Please contact Alyssa Sandoval, Economic Development Director, at 781-275-1111 for more information.
- Economic Development Incentive Program (EDIP) - through the EDIP, businesses are eligible to receive a local Tax Increment Financing (TIF) and a State Investment Tax Credit (ITC) if they invest and create jobs in a community. A TIF is a negotiated agreement with the municipality for a reduction in new local property taxes that result from an investment on a site. The tax relief may range from 5% to 100% for a period ranging from 5 to 20 years.
A State Investment Tax Credit may be offered if there is job creation and the company’s facility generates more than 25% of its sales outside of Massachusetts. A manufacturer may be eligible to receive a state investment tax credit (ITC) with a cap ranging from 0%-to 10%. The amount of the ITC varies by the community in which the investment occurs.
10% Research & Development Tax Credit - for 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 ITCs. A 15% R&D Tax Credit is available for costs related to university research.
- Manufacturers Investment Tax Credit - is a tax credit for investment in tangible depreciable assets for all state manufacturers.
- Sales and Use Tax Exemption - Massachusetts exempts all manufacturing equipment and all R&D equipment from sales and use taxes.
- Single Sales Tax Treatment - provides significant, relative advantage to Massachusetts manufacturers with multi-state operations. It apportions corporate income based solely on the ratio of in-state sales to total sales. Other states often use three factors - including wages and property - and double or triple weight in-state sales.
- Workforce Training Fund Grant - provides cash grants to train new employees or to upgrade the skills of existing employees up to $100,000. The Hiring Incentive Grant provides up to $2,000 in training funds for hiring eligible unemployed workers.
- Life Sciences Tax Incentives through the Massachusetts Life Sciences Center.
- Financing - MassDevelopment, the state’s economic development bank, provides an array of financing tools to assist growing companies. The Emerging Technology Fund can provide up to $2.5 million in low-cost financing to eligible technology-based firms. MassDevelopment provides export assistance loans, equipment loans, and guarantees to growing manufacturers and is the state’s purveyor of Tax-Exempt Industrial Development Bonds.
- State 10% abandoned building tax deduction - for costs associated with renovating an abandoned building at least 75% vacant for two years.
- CDC/504 Loan - a low-interest loan for small businesses with capital projects, landscaping or street improvements; and
- Disabled Access tax credit - for small businesses to remove barriers to make their businesses ADA-compliant.