massachusetts economic development...
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www.cbre-ne.com
33 Arch Street, 28th Floor • Boston, Massachusetts 02110617.912.7000 • Fax 617.912.7001
BOSTON WORCESTER
SPRINGFIELD
MASSACHUSETTSECONOMIC DEVELOPMENT INCENTIVE PROGRAM (EDIP)
SalisburyAmesbury
W. Newbury
Newburyport
Newbury
Rowley
Ipswich
EssexHamilton
Manchester
Wenham
Danvers
PeabodyLynnfield
Wakefield
Saugus
Ston
eham
Melrose
MaldenRevere
Boston
Worcester
ChelseaEverett
Winthrop
Reading
N. Reading
Wilmington
BurlingtonBedford
Concord
Sudbury
Framingham
Natick
Ashland
Holliston
Sherborn
Medway
Franklin
Wrentham
Plainville
N. Attleboro
Attleboro
Mansfield
EastonW. Bridgewater
E. Bridgewater
Bridgewater
Raynham
Taunton
Berkeley Lakeville
FreetownRochester
Marion
Wareham
Bourne Sandwich
Mashpee
Falmouth
Barnstable
Middleborough
DightonRehoboth
Swansea
Fall River
Westport Dartmouth
New Bedford
Acushnet
Fairhaven
Seekonk
Brockton
Norton
Foxborough
Sharon
Stoughton AvonNorfolk
Walpole
Millis
Wellesley
Needham
Westwood
Norwood
Dedham Quincy
Randolph
Holbrook
Abington
Whitman
Hanson
Halifax
Plympton
Kingston
PlymouthCarver
Rockland Hanover
Pembroke
Duxbury
Marshfield
BraintreeWeymouth
Hingham
Norwell
Hull
Cohasset
Scituate
Milton
Canton
Dover
Medfield
Wayland Weston
Lincoln
Acton
MaynardStow
Hudson
Marlborough
Southborough
Westborough
Grafton
Northbridge
UxbridgeDouglas
Sutton
MillburyAuburn
Oxford
WebsterDudleySouthbridge
Charlton
Sturbridge
HollandWales
Monson
Brimfield
Brookfield
WarrenPalmer
Ware
Hardwick
New Braintree
Oakham
Rutland
Barre
PetershamNew Salem
Philipston
Athol
Orange
Warwick Royalston
Winchendon
Templeton
Gardner
Spencer
N. BrookfieldW. Brookfield
Leicester
Holden
SterlingPrinceton
Leominster
Fitchburg
Ashby
Ashburnham
Westminster
Hubbardston
W. Boylston
Paxton
Millv
ille
Blackstone
Warren
Upton
MilfordHopedale
Mendon
Bellin
gham
Hopkinton
Bolton
Boylston
Shrewsbury
Northborough
Berlin
Carlisle
Billerica
Lexington
Waltham
Woburn
Winchester
SomervilleCambridge
Arlington
Belmont
Watertown
Newton
Broo
kline
Medford
Salem
Swampscott
Nahant
Lynn
Marblehead
Beverly
Rockport
Gloucester
Merrimac
Haverhill
Groveland
N. Andover
Tewksbury
Lawrence
Methuen
Dracut
Lowell
Chelmsford
Tyngsborough
Westford
Littleton
Boxborough
Harvard
Lancaster
DunstablePepperell
LunenburgShirley
Groton
Ayer
Townsend
Andover
Boxford
Topsfield
Middleton
Georgetown
North Adams
AdamsNew Ashford
CheshireHancock
Lanesborough
Pittsfield
LenoxRichmond
West Stockbridge
Stockbridge
Alford
Great Barrington
Egremont
Mount Washington
Sheffield
Williamstown
Clarksburg Monroe
Florida
Savoy
Windsor
Dalton
Hinsdale Peru
Washington
Lee
Becket
Tyringham
Monterey
New Marlborough
Sandisfield
Tolland
Otis
Blandford
Granville
Chester
Middlefield
Worthington
Cummington
Plainfield
Hawley
Charlemont
RoweHeath Colrain
Buckland
Ashfield
Goshen
Chesterfield
Huntington
Southampton
Russell
Westfield
Southwick Agawam
Leyden BernardstonWorthfield
ShelburneGreenfield
Conway
Whately
Williamsburg
WesthamptonNorthampton
Easthampton
Montgomery
Deerfield
Gill
Montague
Erving
Wendell
Sunderland
Leverett
Hatfield
Hadley
Amherst
Pelham
Shutesbury
Belchertown
GranbySouth Hadley
Holyoke
Chicopee
Springfield
West Springfield
Longmeadow
East Longmeadow Hampden
Wilbraham
Ludlow E. Brookfield
Yarmouth
Dennis
Brewster
Harwich Chatham
Orleans
Eastham
Wellfleet
Truro
Provincetown
Devens
ECONOMIC DEVELOPMENT INCENTIVE PROGRAM (EDIP)
THE COMMONWEALTH’S LOCAL AND STATE INVESTMENT TAX CREDIT (ITC) PROGRAM FOR BUSINESSES (EDIP Awards by Municipality 2012 to Present)
PERCENTAGE OF INCENTIVES BY INDUSTRY
TYPE
HEALTHCARE 41%
BUSINESS SERVICES29%
MANUFACTURING GOODS
7%
HOSPITALITY6%
TECHNOLOGY 1%
MANUFACTURING 4%
MANUFACTURING/INDUSTRIAL 4%
RETAIL 10%
MANUFACTURING/TECHNOLOGY 3%
OTHER 3%
HEALTHCARE MANUFACTURING 2%
7,500+
JOBS CREATED BY THE EDIP SINCE 2012
SalisburyAmesbury
W. Newbury
Newburyport
Newbury
Rowley
Ipswich
EssexHamilton
Manchester
Wenham
Danvers
PeabodyLynnfield
Wakefield
Saugus
Ston
eham
Melrose
MaldenRevere
Boston
Worcester
ChelseaEverett
Winthrop
Reading
N. Reading
Wilmington
BurlingtonBedford
Concord
Sudbury
Framingham
Natick
Ashland
Holliston
Sherborn
Medway
Franklin
Wrentham
Plainville
N. Attleboro
Attleboro
Mansfield
EastonW. Bridgewater
E. Bridgewater
Bridgewater
Raynham
Taunton
Berkeley Lakeville
FreetownRochester
Marion
Wareham
Bourne Sandwich
Mashpee
Falmouth
Barnstable
Middleborough
DightonRehoboth
Swansea
Fall River
Westport Dartmouth
New Bedford
Acushnet
Fairhaven
Seekonk
Brockton
Norton
Foxborough
Sharon
Stoughton AvonNorfolk
Walpole
Millis
Wellesley
Needham
Westwood
Norwood
Dedham Quincy
Randolph
Holbrook
Abington
Whitman
Hanson
Halifax
Plympton
Kingston
PlymouthCarver
Rockland Hanover
Pembroke
Duxbury
Marshfield
BraintreeWeymouth
Hingham
Norwell
Hull
Cohasset
Scituate
Milton
Canton
Dover
Medfield
Wayland Weston
Lincoln
Acton
MaynardStow
Hudson
Marlborough
Southborough
Westborough
Grafton
Northbridge
UxbridgeDouglas
Sutton
MillburyAuburn
Oxford
WebsterDudleySouthbridge
Charlton
Sturbridge
HollandWales
Monson
Brimfield
Brookfield
WarrenPalmer
Ware
Hardwick
New Braintree
Oakham
Rutland
Barre
PetershamNew Salem
Philipston
Athol
Orange
Warwick Royalston
Winchendon
Templeton
Gardner
Spencer
N. BrookfieldW. Brookfield
Leicester
Holden
SterlingPrinceton
Leominster
Fitchburg
Ashby
Ashburnham
Westminster
Hubbardston
W. Boylston
Paxton
Millv
ille
Blackstone
Warren
Upton
MilfordHopedale
Mendon
Bellin
gham
Hopkinton
Bolton
Boylston
Shrewsbury
Northborough
Berlin
Carlisle
Billerica
Lexington
Waltham
Woburn
Winchester
SomervilleCambridge
Arlington
Belmont
Watertown
Newton
Broo
kline
Medford
Salem
Swampscott
Nahant
Lynn
Marblehead
Beverly
Rockport
Gloucester
Merrimac
Haverhill
Groveland
N. Andover
Tewksbury
Lawrence
Methuen
Dracut
Lowell
Chelmsford
Tyngsborough
Westford
Littleton
Boxborough
Harvard
Lancaster
DunstablePepperell
LunenburgShirley
Groton
Ayer
Townsend
Andover
Boxford
Topsfield
Middleton
Georgetown
North Adams
AdamsNew Ashford
CheshireHancock
Lanesborough
Pittsfield
LenoxRichmond
West Stockbridge
Stockbridge
Alford
Great Barrington
Egremont
Mount Washington
Sheffield
Williamstown
Clarksburg Monroe
Florida
Savoy
Windsor
Dalton
Hinsdale Peru
Washington
Lee
Becket
Tyringham
Monterey
New Marlborough
Sandisfield
Tolland
Otis
Blandford
Granville
Chester
Middlefield
Worthington
Cummington
Plainfield
Hawley
Charlemont
RoweHeath Colrain
Buckland
Ashfield
Goshen
Chesterfield
Huntington
Southampton
Russell
Westfield
Southwick Agawam
Leyden BernardstonWorthfield
ShelburneGreenfield
Conway
Whately
Williamsburg
WesthamptonNorthampton
Easthampton
Montgomery
Deerfield
Gill
Montague
Erving
Wendell
Sunderland
Leverett
Hatfield
Hadley
Amherst
Pelham
Shutesbury
Belchertown
GranbySouth Hadley
Holyoke
Chicopee
Springfield
West Springfield
Longmeadow
East Longmeadow Hampden
Wilbraham
Ludlow E. Brookfield
Yarmouth
Dennis
Brewster
Harwich Chatham
Orleans
Eastham
Wellfleet
Truro
Provincetown
Devens
ECONOMIC DEVELOPMENT INCENTIVE PROGRAM (EDIP)
THE COMMONWEALTH’S LOCAL AND STATE INVESTMENT TAX CREDIT (ITC) PROGRAM FOR BUSINESSES (EDIP Awards by Municipality 2012 to Present)
$70M+TOTAL EDIP &
LOCAL TAX CREDITS SINCE 2012$
KEY1 Incentive
2 Incentives
3 Incentives
4 Incentives
5+ Incentives
The Greater Boston area has seen significant
benefits from the growth of healthcare,
technology and education. Contributing to
this growth is the concentration of high-skill
talent and well-paying jobs in these respective
industries.
TOTAL 85
# OF PROJECTS
KEY INCENTIVE PROGRAMS
Over recent years, Massachusetts has proactively taken more aggressive steps to incentivize companies to move and expand their business within the Commonwealth.
The EDIP is an incentive-based tax program for expanding companies that are creating and/or retaining a substantial number of full-time jobs, and are generating sales outside of the Commonwealth of Massachusetts.
CERTIFIED EXPANSION PROJECT (EP) 13
• A full-time job creation and investment project within an Economic Target Area. ITC as high as 10%.
ENHANCED EXPANSION PROJECT (EEP) 16
• Substantial employment growth of 100+ new full-time permanent jobs, anywhere in the Commonwealth. ITC as high as 10%.
INVESTMENT TAX CREDIT (ITC)
• A credit of 3% for qualifying businesses to be used for the purchase and lease of tangible property used for business purposes. The credit is to be applied against their Massachusetts corporate excise tax.
MANUFACTURING RETENTION PROJECT (MRP) 17
• A project within a gateway community that creates a minimum of 25 new full-time manufacturing jobs and/or retains a minimum of 50 manufacturing full-time positions. ITC is refundable up to 40%.
R&D TAX CREDIT
• A tax incentive for R&D investment for both manufacturers and R&D companies. A credit of 10% can be applied to qualified expenses, while a credit of 15% for basic research. The credit can be taken in addition to the state’s ITC.
TAX INCREMENT FINANCING (TIF) 39
• District may provide businesses with a TIF agreement for up to 20 years. The property tax exemption can range from 5-100%.
Total number of EDIP & TIF Projects
COMMONWEALTH EDIP CASE STUDIES
311 ARSENAL STREET, WATERTOWN
INDUSTRY Information Technology
JOB RETENTION 1,074 full-time employees
JOB CREATION 1,900 new full-time employees
INVESTMENT TAX CREDIT $9.5 million
ENHANCED EXPANSION PROJECT (EEP)
CERTIFIED EXPANSION PROJECT (EP)
1000 TECHNOLOGY CENTER DRIVE, STOUGHTONINDUSTRY Online Retail
JOB CREATION 125 new full-time employees
INVESTMENT TAX CREDIT $600,000
LOCAL REAL ESTATE TAX BENEFITS $2,890,000
10-year Tax Increment Financing Agreement
TAX INCREMENT FINANCING AGREEMENT (TIF)
101 RANDOLPH ROAD, WORCESTER
INDUSTRY Housing Development
JOB CREATION 78 new full-time employees
LOCAL REAL ESTATE TAX BENEFITS $1,492,140
12-year Tax Increment Financing Agreement
MANUFACTURING RETENTION PROGRAM (MRP)
307 AIRPORT ROAD, FITCHBURG
INDUSTRY Information Technology & Manufacturing
JOB RETENTION 154 full-time employees
JOB CREATION 100 new full-time employees
INVESTMENT TAX CREDIT $317,500
© 2014 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
FOR MORE INFORMATION:
CB Richard Ellis – N.E. Partners, LP, a CBRE Joint Venture
CBRE LOCATION STRATEGY & INCENTIVES PROCESS
• Confirm project drivers and criteria through questionnaire and workshops
• Define business inputs (jobs, investment, etc.)• Identify footprint scenarios (what, where, when)• Perform preliminary opportunity assessment, as needed
PHASE I: Develop the Business Case and Review Footprint Considerations
30-45 days
30-45 days• Introduce project and submit request for proposals• Meetings with stakeholders in short-list communities• Develop and refine qualitative and quantitative analysis• Narrow to finalist locations
PHASE II: Scenario Analysis and Market Due Diligence
• Final in-market meetings/negotiations• Detailed site/facility due diligence• Submit applications, negotiate development
agreements, receive approvals• Finalize real estate options/sign lease or
purchase agreement
15-45 days
PHASE III: Final Negotiations and Approvals
• Announcements/Public relations events• Permits/Construction/Fit-out of space• Hire and train new jobs• Begin capital expenditures• Incentives administration and compliance
Timing TBD
PHASE IV: Implementation
MONTH 1: ALL NORTH AMERICA
MONTH 2: 10-15 STATES MULTIPLE MSAS
MONTH 3: 3-6 MSAS MULTIPLE SITES
MONTH 4: 1-2 SITES
MONTH 5: FINAL SITE
Christopher B. SchastokVice President 312.861.7847 [email protected]
Andy HoarPresident/Co-Managing Partner 617.912.7010 [email protected]
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