Tax credits provide an incentive to eligible Massachusetts businesses, nonprofits, and developers to move projects forward. MassDevelopment can help determine your eligibility.
The Brownfields Tax Credit Program is administered by the Massachusetts Department of Revenue. It offers eligible businesses and nonprofits a tax credit for the costs incurred in a brownfields remediation project. Brownfields tax credits may be used against state tax liabilities, or transferred or sold to third parties.
Eligible multifamily rental projects can apply for an allocation of low-income housing tax credits, if over 50% of the total development costs are being financed with tax-exempt bonds issued through MassDevelopment. Availability of low-income housing tax credit equity varies with market conditions.
The New Markets Tax Credit (NMTC) Program was created to stimulate investment in designated low-income communities. MassDevelopment assesses potential NMTC projects for both nonprofit and for-profit businesses, including:
- Community and health centers
- Retail and office space
- Performing arts centers
- Mixed-use developments
- Light industrial use centers
- New construction
- Rehabilitation of historic and non-historic structures
For developers, NMTC financing can provide a valuable source of gap financing.