Massachusetts · Economic Development · MA-EDIP-001
Economic Development Incentive Program Credit
Publication revised September 24, 2026. Sourcebook page 143.
Credit amount / calculation
Project-specific negotiated award based on jobs, investment and location.
Business fit and eligible activity
Qualifying expansions can negotiate a state investment tax credit through EDIP. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
The practical fit depends less on the company label than on the underlying activity, expenditure, location, or employment change.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit. Page
Timing / first action
Seek approval before starting the overall project, including site work or construction. Contact the administering agency and secure the required approval before the project is publicly or contractually committed.
Official sources
Related programs
Investment Tax Credit
3% of qualifying tangible property
Massachusetts manufacturers can claim a broad statutory credit on qualifying tangible property used in manufacturing.
Research Credit
Credit based on qualified Massachusetts research
Qualified Massachusetts research can produce a corporate excise credit.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.