SECTION 1. Chapter 63 of the General Laws is hereby amended by adding after section 38FF the following new section: 

Section 38GG. (a) As used in this section the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Certified applicant”, a person, corporation, or other entity issued a certificate by the Department.

“Department”, the Massachusetts Office of Business Development.

“Director”, the Executive Director of the Massachusetts Office of Business Development.

“Incremental sales tax revenue increase”, the difference between the average sales tax collected by the certified applicant in the three years prior to the scheduled project completion date described in the application submitted under this section, and the annual sales tax collected by the certified applicant following the completion of the project.

“Qualified applicant”, a person, corporation, or other entity which owns and operates a hotel or restaurant in the Commonwealth.

“Qualified hotel”, a hotel with a minimum renovation expenditure of two million  dollars for costs incurred for repair, renovation, improvements and upgrades of guest rooms or suites and common areas provided that such investment shall have a minimum expenditure of ten thousand dollars per guest room or suite.

“Qualified restaurant”, a restaurant with a minimum expenditure of one hundred thousand dollars for costs incurred for repair, renovation, improvements and upgrades relating to dining areas, restrooms, kitchens and common areas, as well as exterior upgrades such as signage, façade and landscaping.

"Qualified renovation expenditure", actual costs incurred by a certified applicant for repair, renovation, improvements and upgrades relating to guest rooms or suites of a project or actual costs for repair renovation, improvements and upgrades relating to dining areas, restrooms, kitchens and common areas as well as exterior upgrades such as signage, façade and landscaping for a project defined in this section. All costs shall be verified by an independent third-party Certified Public Accountant licensed to do business in the Commonwealth of Massachusetts. Applicant shall pay all costs for the third-party verification. Approved project costs may not increase regardless of the actual costs incurred by the project.

“Incremental sales tax revenue increase”, the difference between the average annual sales tax collected by the certified applicant in the three years prior to the scheduled project completion date described in the application submitted under this section, and the annual sales tax collected by the certified applicant following the completion of the project.