This page provides information on grant and tax incentive programs that may be suitable for Merrimack Valley businesses and communities.  

Federal Grants

Economic Development Administration

The Economic Development Administration (EDA) of the U.S. Department of Commerce offers a number of grants for the purpose of creating and retaining jobs, targeted to local governments and nonprofit organizations in "highly distressed" areas of the country. There are a number of ways for an area to be considered "distressed," but generally, an area needs to have an unemployment rate at least 1% above the national average for the last 24 months; a per capita income of not more than 80% of the national average; or a sudden, large displacement of jobs.

It is important to note that the size of the area that EDA will consider is flexible, meaning that if the immediate area of a proposed project is too well-off to qualify as distressed, the boundaries of the area can expand to include neighboring communities that do qualify, so long as the applicant can show that the project will provide employment opportunities for workers from the distressed community and that these workers would have a reasonable ability to commute to the location.

Public Works Grant: This is an infrastructure grant, used for the development of roads, water/sewer lines, treatment plants, telecommunications, bridges, or port facilities, which service an industrial or commercial area; the rehabilitation of industrial or commercial buildings; or a new industrial or commercial building construction. All property improved or created by the grant must be owned by the public or nonprofit entity. ***Note: In order for a project to be considered by EDA for a Public Works Grant, the project must be listed in the regional Comprehensive Economic Development Strategy (CEDS) Report (please see MVPC's CEDS page for current project listings.) If an economic development project is not listed in the CEDS report, the project, through an EDA-approved addendum to the CEDS, may be added at any time during the year.

Economic Adjustment Grant: This grant is similar to the Public Works Grant, except that its aim is broader and is targeted towards areas that have experienced a sudden, large loss of jobs. In addition to infrastructure projects, this grant may be used for the creation of a strategic plan.

Technical Assistance Grant: Local governments and nonprofits typically use this grant to hire a consultant service to perform a feasibility study or to devise innovative programs leading to economic development. This grant is flexible and can support a number of different types of studies and programs. For example, a community that would like to boost its tourism industry could use the grant to prepare a tourism development strategy, or sponsor an economic development conference that focuses on the tourism industry.

Environmental Protection Agency

The U.S. Environmental Protection Agency (EPA) offers a number of grants dealing with brownfields and smart growth planning.

Brownfields Program: EPA offers local communities various grant opportunities for assessing and cleaning up brownfield properties. In addition, EPA offers a job training grant, which provides funding to train local residents for employment in a number of careers involved with brownfields restoration.
http://www.epa.gov/brownfields/
http://www.epa.gov/ne/brownfields/index.html

Smart Growth Program: EPA provides grants to localities to help them incorporate smart growth into planning, revitalization, and/or redevelopment efforts. The grants are targeted towards projects that feature innovative community actions that can be replicated across the country.
http://www.epa.gov/smartgrowth/index.htm

Federal Tax Incentives

In 2002, the City of Lawrence, through the U.S. Department of Housing and Urban Development, had a large section of its downtown designated as a Renewal Community Zone, one of only 40 in the entire nation, which qualifies the area for significant economic aid in the form of wage credits, tax deductions, capital gains exclusions, and bond financing to stimulate economic development and job growth.

State Business Assistance

The place for businesses to go is the Massachusetts Business Resource Team, a one-stop location for all the state's business assistance resources. Businesses no longer have to go hunting for information on state assistance programs; all they need to do is contact the Business Resource Team, answer a few basic questions, and the Business Resource Team will do all the work matching the company's needs with the available state programs.

Massachusetts Historic Rehabilitation Tax Credit: Under this program, a certified rehabilitation project on an income-producing property is eligible to receive up to 20% of the cost of certified rehabilitation expenditures in state tax credits. There is an annual cap, so there are selection criteria that ensure the funds are distributed to the projects that provide the most public benefit. The Massachusetts Historical Commission certifies the projects and allocates available credits. http://www.sec.state.ma.us/mhc/mhctax/taxidx.htm

State Assistance to Municipalities

Massachusetts Executive Office of Housing and Economic Development

Massachusetts Opportunity Relocation and Expansion (MORE) Jobs Capital Program: The Massachusetts Opportunity Relocation and Expansion (MORE) Jobs Capital Program provides $100 million in grant funding for public infrastructure improvements needed to support business expansion in the Commonwealth of Massachusetts. The purpose of the program is to stimulate job creation and economic growth across the state by providing the public infrastructure developments companies need. MORE was established in an economic stimulus bill and signed into law on June 24, 2006 (Chapter 123 of the Acts of 2006). For a detailed explanation of the program and its application requirements, click here - MORE JObs Program

 

Massachusetts Office of Business Development (MOBD)

Economic Development Incentive Program: To stimulate business growth and foster job creation, the state has created the Economic Development Incentive Program (EDIP), designed to attract and retain businesses in specific Economic Target Areas (ETAs). An ETA is three or more contiguous census tracts, in one or more municipalities, meeting one of nine criteria for economic need. There are ETAs throughout the Commonwealth. An Economic Opportunity Area (EOA) is an area, or several areas, within a designated ETA of particular need and priority for economic development. These areas are selected by the individual communities, and must meet one of four statutory criteria for designation.

Tax Increment Financing: Tax Increment Financing (TIF) allows municipalities to provide flexible targeted incentives to stimulate job-creating development. The TIF Plan, completed by the municipality, describes proposed public and private investment in the TIF Zone, and is agreed upon by the municipality and all the private owners in the TIF Zone. The municipality and the prospective Certified Project candidate agree to a property tax exemption based on a percentage of the value added through new construction or significant improvement for a period of no less than five and no more than twenty years.

District Improvement Financing: The District Improvement Financing (DIF) Program is a public financing alternative available to all cities and towns in the Commonwealth. It enables municipalities to fund public works, infrastructure, and development projects by allocating future, incremental tax revenues collected from a predefined district to pay project costs. To make this work, a municipality must first define the district and document a development program describing, among other things, how the DIF will encourage increased residential, commercial, and industrial activity within the district. It must also detail the project improvements, financing plans, and community benefits. Next, after the local public hearings and approvals, the municipality must submit an application to the state Economic Assistance Coordinating Council (EACC) for final approval prior to implementing the program.

Massachusetts Executive Office of Transportation (EOT)

Public Works Economic Development Program (PWED): In short, PWED was created to assist municipalities in funding transportation infrastructure that will stimulate economic development. For a detailed explanation of the program and its application requirements, click here - PWED

Massachusetts Department of Housing and Community Development (DHCD)

Through the Division of Community Services, DHCD offers a wide array of comprehensive community planning programs and grants. http://www.mass.gov/dhcd/components/cs/default.HTM

Massachusetts Downtown Initiative: DHCD’s Massachusetts Downtown Initiative (MDI) offers a range of services and assistance to communities seeking help on how to revitalize their downtowns. The primary mission of the MDI is to make downtown revitalization an integral part of community development in cities and towns across the Commonwealth. MDI’s guiding principles are that the most effective approach to downtown revitalization is a holistic one; that it addresses economic and community development needs; and that it provides a framework of interrelated activities that promote positive change in a downtown to keep it healthy and prosperous. http://www.mass.gov/dhcd/components/cs/1PrgApps/MDI/default.HTM

Business Improvement Districts: Business Improvement Districts (BID) are special assessment districts in which property owners vote to initiate, manage and finance supplemental services or enhancements above and beyond the baseline of services already provided by their local city or town governments. A special assessment, or common area fee, is levied only on property within the district. The assessments are collected and expended within the district for a range of services and/or programs, including marketing and public relations, improving the downtown marketplace or city/town center, capital improvements, public safety enhancements, and special events. A BID creates a stable local management structure that provides a sustainable funding source for the revitalization and long-term maintenance of downtowns and city/town centers. The goal of a BID is to improve a specific commercial area by attracting customers, clients, shoppers and other businesses. http://www.mass.gov/dhcd/components/cs/1PrgApps/BID/default.HTM

Chapter 40R: In 2004, the Smart Growth Zoning Overlay District Program was created, which allows for direct payments to municipalities that adopt smart growth overlay zoning districts in downtowns, commercial centers, or around transit stations, and issue building permits in these areas to create new opportunities for housing. Electronic copies of the Chapter 40R statute and program regulations are available at http://www.mass.gov/dhcd/components/SCP/ch40r/default.htm

Massachusetts Executive Office of Energy and Environmental Affairs (EOEEA)

Smart Growth Technical Assistance Program: EOEEA offers Smart Growth Technical Assistance Grants to the Commonwealth's municipalities and Regional Planning Agencies in support of their efforts to implement land use regulations that are consistent with Massachusetts' Sustainable Development Principles.

Massachusetts Bay Transportation Authority (MBTA)

Transit-Oriented Development: Transit-oriented development (TOD) is compact, walkable development around transit stations. Generally including a mix of uses such as housing, shopping, employment, and recreational facilities—TOD is designed with transit and pedestrians as high priorities, making it possible for visitors and residents to move around without complete dependence on a car.

Numerous MBTA properties located at or near T stations are involved in the TOD Program on MBTA Surplus Property. The MBTA work with local communities to use surplus MBTA land near transit stations to catalyze high-quality, transit-oriented development. The program provides technical assistance for outreach, planning, marketing, and RFP development. 
 
 

Massachusetts Office for Commonwealth Development (OCD)

OCD is charged with pursuing the state's smart growth agenda by coordinating the smart growth efforts of the state's housing, transportation, and environmental agencies, including the above-mentioned grant programs of the Executive Office of Transportation, Department of Housing and Community Development, Executive Office of Energy and Environmental Affairs, and Massachusetts Bay Transportation Authority.

Commonwealth Capital Application: The Commonwealth Capital (CC) policy of the Office for Commonwealth Development (OCD) coordinates state capital spending programs that affect development patterns to ensure that state investments promote projects consistent with sustainable development principles. Commonwealth Capital explicitly endorses planning and zoning measures that are in accord with administration policy and encourages municipalities to implement them by linking state spending programs to municipal land use practices.

Grant applicants will continue to apply directly to each of the Commonwealth Capital programs; however, municipalities now need to also apply annually to OCD for a Commonwealth Capital score. For FY 06, the Commonwealth Capital applications will be submitted electronically. Communities should submit their Commonwealth Capital applications to OCD for scoring by the due date of the program to which they are applying.

MassDevelopment

MassDevelopment employs a wide range of financial tools, such as development funds, tax-exempt bonds, and a variety of loan and guarantee programs, to help meet the various financial needs of businesses, nonprofits, and public entities.

Massachusetts Technology Collaborative

The Massachusetts Technology Collaborative is the state’s development agency for renewable energy and the innovation economy. MTC administers the John Adams Innovation Institute and the Renewable Energy Trust.

John Adams Innovation Institute's Regional Fund: The $15 million Regional Fund supports regional technology-based economic development initiatives across the Commonwealth. Grants are provided to public and not-for-profit organizations to enable them to undertake initiatives that are intended to create and maintain a favorable environment for the establishment, attraction, retention and expansion of technology-intensive businesses.

• Regional Priority Grants – early stage, small to medium scale technology based projects that can move a region or an economic cluster forward. Fundable projects will advance opportunities for the development, retention and growth of regional employment in technlogy-based economic sectors. Amounts: range $25K to $150K

• Regional Project Grants – new and unique technology-based economic development projects that will enhance the competitiveness of a specified technology sector within a given region. Amount: up to $500K

• Regional Infrastructure Grants – large-scale, competitive awards for the purpose of catalyzing exceptional opportunities to grow/expand a specified technology-based economic sector. Amount: up to $2M

John Adams Innovation Institute's Research Center Matching Fund: The $20 million Research Center Matching Fund supports efforts to enable university-based research centers to develop and transfer technology to industry in the Commonwealth.

Renewable Energy Trust: MTC's Renewable Energy Trust has an array of programs that address energy use at public facilities, as well as a program that helps communities* explore the possibility of installing wind turbines on public land. 

• Green Schools Initiative – This initiative provides school districts in Massachusetts with the information and resources necessary to help them design and build high-performance green schools. Eligible schools achieving a high-performance design can also apply for a grant to install a solar electric (PV) or wind electric system at the school.

• Large Onsite Renewables Initiative – This initiative provides grant funding, through a competitive process, to assist with feasibility studies and design and construction of renewable energy projects, including wind energy, solar photovoltaics, hydroelectric, and biomass energy. Projects must have an installed capacity of greater than 10 kilowatts and consume more than 25% of the renewable energy generated by the project onsite. Grant levels vary based on the characteristics of each project.

• Small Renewables Initiative – This initiative provides rebates on a first-come first-served basis to public facilities of up to $50,000 for design & construction of solar electric, wind or hydroelectric energy projects that are up to 10 kilowatts in size.  Rebates vary based on the characteristics of each project. Follow the step-by-step instructions at this link to navigate the rebate process.

• Clean Energy Choice® – MTC's Clean Energy Choice® program allows consumers to purchase electricity from renewable sources, which, in turn, generates matching grants for their communities. Your town or city can receive up to one dollar in funding for each dollar residents spend on clean energy. This money can be used to fund clean energy projects. Towns can use Clean Energy Choice matching grants in combination with rebates from the Small Renewables Initiative (see above) for renewable energy projects. It pays to encourage residents to choose clean energy. Learn about matching grants.

• Community Wind Collaborative – The Community Wind Collaborative offers qualified interested communities technical assistance, wind monitoring equipment, data analysis, and competitively secured resources for wind energy projects.

• Predevelopment Financing Initiative – Public entities wishing to explore large (greater than 250 kW), grid-connected renewable energy systems may be eligible for grants to support feasibility studies through this initiative.

• Community Energy Opportunities – Communities in investor-owned utility service territories often need help addressing energy costs. Through Community Energy Opportunities, the MTC provides resources that will help communities of any experience level take the next step with saving energy and reducing costs.