Economic Development Incentive Program

The City of Westfield and State of Massachusetts offers the Economic Development Incentive Program (EDIP) which is a tax incentive program in which eligible companies may receive state and local tax incentives in exchange for job creation and private investment commitments.
This incentive program is offered to businesses that choose to start-up, expand, or locate in or to Westfield. This program promotes growth in both emerging and maturing industries.

Each project must involve:
  • New investment that results in an increase in property value
  • Creation of new jobs for Westfield and immediate area residents
Financial Benefits:
  • 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 most 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 (STA) schedule ranging from 0%-100% of the total valuation
  • Research and Development Tax Credit
    • Costs that qualify for federal R&D are eligible for a 10% Massachusetts R&D tax credit. A 15% credit is available for costs associated to university based research
  • Single Sales Factor
    • Provides a signifigant advantage to Massachusetts manufacturers with multi-state operations. It apportions corporate income based solely on the ratio of in-state sales to total sales. Other states often use double and triple weight  of in-state sales which could include wages and property.

 

Contact Person:
Jeff Daley, City Advancement Officer, 413.642.9028 or j.daley@cityofwestfield.org