Tax Candi

I've been to Boston twice -- Once was a near-death experience as my mother and I tried to navigate the "Big Dig," and the second time, I spent 8 hours trying (unsuccessfully) to locate USS Constitution. And yet, for some reason think I could easily fall in love with Boston...

So, on that note, let's talk about Massachusetts' Economic Opportunity Area Credit.

As a part of the Commonwealth’s Economic Development Incentive Program, eligible businesses may claim a credit for a percentage of the cost of any property used exclusively for a certified project within an Economic Opportunity Area (EOA).  Companies are required to create new jobs and make substantial capital investment within Massachusetts

Here are a couple of important program parameters:

An EOA is an area within a designated Economic Target Area (ETA) that is in particular need for economic development.

The credit amount is equal to 5% of the cost of any eligible property.

A “certified project” is a project approved by the Economic Assistance Coordinating Council for participation in the economic development incentive program.

The credit may not reduce the tax below the greater of the minimum excise tax or 50% of the taxpayer’s excise tax before credits. The credit term may run up to 5 years, and the carryforward is 10 years.

Eligible companies recieve the credit through application and negotiations with the Massachusetts Office of Business Development.