Economic Development Incentive Program
This collaborative effort between the Commonwealth of Massachusetts' Office of Business Development and the City of Worcester offers local and state tax incentives to qualified businesses that choose to start-up, expand or relocate in or to Worcester. This program promotes growth in both emerging and maturing industries. EDIP may be utilized by manufacturers, retailers, commercial office users or industrial businesses.
Program Eligibility Requirements
Each project must involve:
- New investment that results in an increase in property value.
- Creation of new jobs for Worcester residents.
EDIP provides the following benefits to projects that are designated as Certified Projects and are granted a Tax Increment Financing (TIF) Agreement with the City of Worcester.
- Abandoned Building Tax Deduction
If the project involves the renovation and reuse of an abandoned building in which 75% of the space has been vacant for a period of 24 months, the project may be entitled to receive a one-time corporate tax deduction equal to 10% of the cost associated with the renovation of the abandoned building.
- Investment Tax Credit (ITC)
A 5% tax credit provided by the state for all types of businesses. The ITC applies to the cost of renovations of the real estate and to capital acquisitions having a depreciable life of four or more years.
- Local Property Tax Relief
A TIF Agreement may allow relief from new taxes attributable to the increment generated by the private investment, or a special property tax assessment schedule ranging from 0% to 100% of the total valuation.
The City of Worcester has adopted the below Tax Increment Financing (TIF) Policy for any projects participating in the Economic Development Incentive Program.