Tax Credit Financing
Tax credits provide an incentive to eligible businesses, nonprofits, and developers to move projects forward. MassDevelopment can help determine what is available to you, including:
4% Federal Low Income Housing Tax Credits – If over 50% of the total development costs of an eligible multi-family rental project are being financed with tax-exempt bonds issued through MassDevelopment, the project is eligible to apply for an allocation of low income housing tax credits. Low income housing tax credits are a source of equity for the project. The availability of low income housing tax credit equity varies with market conditions.
Brownfields Tax Credit Program – The Brownfields Tax Credit Program is administered by the Massachusetts Department of Revenue and offers eligible businesses and nonprofits a tax credit for the costs incurred to remediate contaminated property owned or leased for business purposes in an EDA. Tax credits may be used against state tax liabilities, or transferred or sold to third parties.
New Markets Tax Credit Program – The NMTC Program was created specifically to stimulate investment in designated low-income communities. MassDevelopment assesses potential NMTC projects for both non-profit and for-profit businesses, including, but not limited to, community and health centers, retail and office space projects, performing arts centers, mixed-use projects and light industrial use centers. For developers, NMTC financing can provide a valuable source of gap financing. NMTC investment can be utilized on both new construction as well as rehabilitation projects of historic and non-historic structures.