Economic Development Incentive Program (EDIP)
The Economic Development Incentive Program is a tax incentive program designed to stimulate business growth and foster job creation throughout the Commonwealth. Through this incentive program, participating companies may receive state and/or local tax incentives in exchange for job creation, private investment, and generation of substantial sales outside of Massachusetts.
The City of Gardner is an Economic Target Area (ETA), and has created six (6) Economic Opportunity Areas (EOA) where certified projects can be located. These areas include:
- Colony Road
- East Gardner Industrial Park
- Fredette Street
- Lower Main Street
- Pearson Blvd to E. Broadway
- Summit Industrial Park
For more information on the EDIP including eligibility requirements and application forms please contact Joshua L. Cormier at 978-630-4011 X1.
Five percent (5%) Investment Tax Credit or EOA Credit
| The EDIP enables Certified Project recipients to apply a 5% tax credit to the recipient’s corporate excise tax for qualifying tangible, depreciable assets associated with the new development or expansion. The Tax Credit is applicable over the life of the Certified Project. Currently listed manufacturers in Massachusetts receive a 3% Investment Tax Credit without Certified Project status.
Ten percent (10%) Abandoned Building Credit
| The EDIP offers a 10% Abandoned Building Tax Credit for renovations made to underutilized buildings within an EOA that have not been at least 75% occupied by a tenant for two (2) or more years. The City is required to verify the percentage of total floor area that is vacant or unused, and the amount of time in which that area has remained unused, prior to any project approval.
Tax Increment Financing (TIF)
| The TIF Agreement provides a property tax exemption for each land owner of between 0 and 100% of the taxes attributable to the increment in new value resulting from the proposed new development. The TIF zone proposed in the TIF plan shall also meet the criteria set forth for the designation of an EOA. The TIF project shall be designated for a specified number of years, which shall be not less than 5 years and not more than 20 years or the number of years remaining on the project EOA, whichever is less.
Special Property Tax Assessment
| The binding written offer shall set forth the following assessment schedule for each parcel of real property in and on which is located, and which is otherwise a part of, a certified project in the project EOA:
1. an assessment of 0% of the actual assessed valuation in the first year
2. an assessment of up to 25% in the second year
3. an assessment of up to 50% in the third year
4. an assessment of up to 75% in the fourth year
5. an assessment of up to 100% in the fifth year