Massachusetts doesn't take its position as a leading life sciences industry cluster in the world for granted. Every day Massachusetts works strategically and at ground level to ensure that the forces that created the Massachusetts life sciences cluster - its schools, universities, highly skilled workforce, and medical community - continue to support the growth of the industry. This effort is now augmented by a new $1 billion Life Sciences Initiative. Massachusetts offers an impressive array of incentives for biotechnology companies across the business life cycle spectrum to grow and thrive.
To learn more about the many business incentives available in Massachusetts, contact the business incentives specialists at MassBio. Our job is to help educate you about these programs and provide you with a trusted industry advocate, with comprehensive knowledge of the Massachusetts economic development landscape, to assist you as you begin to take advantage of the many development resources potentially available to you. Contact Peter Abair at firstname.lastname@example.org or (617) 674-5100.
Overview of LSI Programs and Incentives
Cooperative Research Grant - Supports industry-sponsored research at universities and to facilitate scientific discoveries that lead to medical applications with grants of $250,000 per year for up to three years, in a 1:1 match with its industry partner.
New Faculty Startup Grant - Targets investments to attract and retain nationally prominent faculty at Massachusetts' colleges and universities with grants of $250,000 per year for up to three years, in a 1:1 match with the academic institution.
New Investigator Grant - Aimed at to spurring 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 with grants of $100,000 per year for up to three years.
Life Sciences Accelerator- Intended as matching funds, offers up to $750,000 for early-stage life sciences companies to help leverage additional sources of capital.
Life Sciences Tax Incentive Program - Life sciences companies that are growing jobs, investments, and revenue are prospects for the nine distinct tax incentives of the LSI. To receive the benefits, companies must apply to the MLSC to become a Certified Life Science Company. The incentives include:
- Refundable 10% Investment Tax Credit
- Refundable Research Tax Credit
- Special Sales Tax Exemption
- Extension of Let Operating Losses to 15 years
- Refundable FDA User fee Credit
- Life Sciences Research Credit
- Deduction for Orphan Drug Clinical Testing
- Elimination of Sales Factor Throwback
- Construction Sales Tax Exemption
For more information and to apply, visit www.masslifesciences.com. The application is ONLINE ONLY.
General Massachusetts Incentives
Workforce Training Fund (WTF) - Provides grants up to $100,000 to upgrade skills of new or incumbent workers. The WTF Express program offers grants of up to $15,000 for “off-the-shelf” worker training programs approved by the state. The Hiring Incentive Training Grant provides up to $2,000 in training funds for hiring eligible unemployed workers.
Investment Tax Credit (ITC)- A 3% ITC for investments in tangible depreciable assets to all state manufacturers. Massachusetts also provides aSales & Use Tax Exemption for manufacturers and companies engaged in R&D.
Economic Development Incentive Program - Offers incentives in several ways:
- In municipalities that are Economic Target Areas, expansions can be assisted with locally-approved TIF agreements which are exemptions on the value added to a property in the expansion and a state-approved 3-5% Investment Tax Credit
- For projects that result in 100 or more new jobs (Enhanced Expansion Projects), companies can be approved by the state for the Investment Tax Credits of up to 10%, without the need for any local approvals
- For projects in select “Gateway Communities” that create 100+ jobs, companies can pursue both a local TIF agreement and state-approved Investment Tax Credits of up to 10%. Manufacturing Retention projects can receive up to a 40%.
Research and Development Tax Credit - Costs that qualify for the Federal R&D tax credit are eligible for a 10% Massachusetts R&D Tax Credit. A 15% R&D Tax Credit is available for costs related to university -based research.
Single Sales Tax Treatment -Provides a 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.
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.
Infrastructure Grants - Municipalities can seek grant funds of up to $2 million to assist with the costs of roadway, water, and sewer projects associated with job creation projects through the CDAG and PWED grants.
For more information on how to access these programs and incentives, contact Peter Abair at email@example.com or (617) 674-5100.
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