Massachusetts Incentives

Massachusetts is the setting for one of the most dynamic scientific clusters the world has ever known because the state welcomes new companies and strongly supports the expansion of those already here with financial and tax incentives. There are a number of programs and tax advantages that make it easier for companies to thrive in the Bay State.

Economic development experts at the Massachusetts Biotechnology Council help companies navigate the various opportunities to find the most appropriate ones.

Life Science Programs

Job Creation Incentive Payment

For life science manufacturers, Massachusetts offers a rebate of 50% of the payroll withholding taxes paid by the new employees to the state. These rebates are available to companies hiring 10 or more new workers in a calendar year.

Emerging Technology Fund (ETF)

MassDevelopment, the state's development and finance authority, offers the ETF, which supports innovation and growth in Massachusetts by providing loans and guarantees for technology-based manufacturing facilities and equipment at low-cost rates.

Massachusetts Life Science Fund

This new $1 billion program will provide a variety of financial incentives to life science companies that are adding jobs in Massachusetts. The funds can be used to support a number of different growth activities, from equipment purchases to research activities to relocation costs. The initial Matching Grant program consists of three solicitations:

The Cooperative Research Solicitation

The Cooperative Research Solicitation seeks to increase industry-sponsored research at universities and colleges in Massachusetts in order to facilitate scientific discoveries and inventions that lead to beneficial medical applications. A successful applicant will receive a grant of $250,000 per year for up to three years, in a 1:1 match with its industry partner.

The New Faculty Startup Solicitation

The New Faculty Startup Solicitation targets investments to attract and retain nationally prominent faculty at Massachusetts' colleges and universities. A successful applicant will receive a grant of $250,000 per year for up to three years, in a 1:1 match with the academic institution.

The New Investigator Solicitation

The New Investigator Solicitation seeks to spur innovative new research and advance the careers of new investigators who are working on cutting-edge life sciences research at Massachusetts academic research centers and institutions. A successful applicant will receive a grant of $100,000 per year for up to three years.



Workforce Support

Massachusetts has an exceptional workforce assistance system that assists businesses seeking to recruit the best employees to meet workforce needs. Many of our regional career centers have received national awards for performance. These free services are an added benefit for doing business in Massachusetts.

Workforce Training Fund (WTF)

The WTF provides grants up to $250,000 to upgrade skills of new or incumbent workers. For exceptional opportunities, participating businesses can receive up to $1,000,000. These funds can be used to provide multiple training needs from manufacturing processes to sales force to management. The WTF has two components, the Express Program and the larger General Fund.

Hiring Incentive Training Grant

Employers can receive up to $2,000 in training funds for hiring eligible unemployed workers.



Tax Advantages

Research and Development Tax Credit

Massachusetts has a favorable R&D tax incentive. Costs that qualify for the Federal R&D tax credit are eligible for a 10% Massachusetts R&D Tax Credit. 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.

Sales & Use Tax Exemption

The Sales & Use Tax Exemption is for manufacturers and companies engaged in R&D.

Investment Tax Credit (ITC)

Massachusetts offers a 3% ITC for investments in tangible depreciable assets to all state manufacturers.

Single Sales Tax Treatment

A significant cost advantage to Massachusetts manufacturers is the Single Sales Factor Tax Apportionment, which provides a relative advantage to Massachusetts companies with significant out-of-state sales. It apportions corporate income based solely on the ratio of in-state sales to total sales. Other states often use three factors in apportionment and double or triple weight in-state sales.

Economic Development Incentive Program

Many communities in Massachusetts are Economic Target Areas (ETAs). Job creation projects within ETAs are potentially eligible to receive several types of tax benefits through the EDIP such as:

The TIF

An ETA community may offer a Tax Increment Finance (TIF) agreement to a job-creating business. A TIF provides an exemption on property taxes on the additional value added to the property by the participating company. The exemptions can be from 1 to 100% of the added value of the property for a period of 5 to 20 years. In addition, under a TIF agreement an exemption of 100% of the value of any personal property is provided to the business. Benefits of the TIF and EDIP program can also be achieved in circumstances in which businesses lease facilities.

The EOA-ITC

Once a TIF is negotiated, the Commonwealth can extend an EOA Investment Tax Credit of 5%. Investments in depreciable facilities or equipment are eligible in the calculation of the investment tax credit. This credit can be applied directly against any Massachusetts tax obligation.

Abandoned Building Renovation Deduction

Businesses can deduct up to 10% of the costs incurred in renovating buildings that have been 75% vacant for two or more years in ETA communities.



Life Science Companies and the EDIP

Since 1997, 27 life sciences companies have used the EDIP program in assisting expansions or relocation, with the following project results:

  • $2,013,550,000 in new investment
  • 2,754 projected new jobs
  • Abbott Bioresearch Center
  • Agencourt Bioscience
  • Alkermes, Inc.
  • Anika Therapeutics
  • Associates of Cape Cod
  • BASF BioResearch
  • BioChem Pharma (Shire)
  • Biomeasure
  • Biomedical Polymers
  • Bionostic, Inc.
  • Boston Scientific
  • Bristol Myers Squibb
  • Bruker Biosciences
  • Cell Signaling, Inc.
  • Charm Sciences
  • Charles River Laboratories
  • Cytyc Corporation
  • Innovative Spinal Technologies
  • Lonza
  • Medtronic Interventional Vascular
  • New England Biolabs
  • Nutramax Products
  • Serono Labs
  • Siemens Diagnostics
  • Spherics
  • Stryker Biotech
  • Waters Technologies