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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.

Financial Benefits

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.

TIF Policy

The City of Worcester has adopted the below Tax Increment Financing (TIF) Policy for any projects participating in the Economic Development Incentive Program.

TIF Policy

TIF Reporting

The City of Worcester's active TIF projects have accomplished the following:

  • Created 1,777 full-time, permanent jobs.
  • Retained 979 full-time, permanent jobs.
  • Retained and expanded 8 businesses in the City.
  • Attracted 3 new businesses to the City.
  • Catalyzed 17 real estate development projects.
  • Induced more than $306 million in total private investment.
  • Generated more than $200 million in new taxable value.
  • Contributed approximately $16,500,000 in real estate taxes.

2019 TIF Report

Additional Information

For more information and to apply, contact:

Peter Dunn
Chief Development Officer

Contact Information

Economic Development
City Hall 4th Floor
455 Main Street
Worcester, MA 01608

Accessible via WRTA Bus Line. View Schedules

Phone: 508-799-1400
Fax: 508-799-1406
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Office Hours:
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8:30 a.m. - 5 p.m.

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