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The 193rd General Court of the Commonwealth of Massachusetts

Section 3C: Project proposal to create permanent full-time employees within the commonwealth; certification

Section 3C. (a) A controlling business may petition the EACC to certify a proposed project that will create new permanent full-time employees within the commonwealth. Each proposed project submitted by a controlling business to the EACC for review and certification shall include: (i) a detailed description of the proposed project; (ii) a representation by the controlling business regarding the amount of capital investment to be made, the number of new jobs to be created and the number of existing jobs to be retained; (iii) a representation by the controlling business regarding any other economic benefits or other public benefits expected to result from the construction of the proposed project; (iv) a municipal project endorsement; and (vi) any other information that the EACC shall require by regulation, policy or guidance.

(b) Upon receipt of a completed project proposal and municipal project endorsement, the EACC may certify the proposed project, deny certification of the proposed project or certify the proposed project with conditions. In order to certify a proposed project, with or without conditions, the EACC shall make the following required findings based on the project proposal, the municipal project endorsement and any additional investigation that the EACC shall make and incorporate in its minutes: (i) the proposed project is located or will be located within the commonwealth;

(ii)(A) if the controlling business has at least 1 existing facility in the commonwealth, then the proposed project shall be an expansion of an existing facility and not merely the replacement of an existing facility except in the case of a proposed project that will enable a controlling business to retain jobs in a gateway city as provided in subclause (2) of clause (B); or (B) the proposed project will either: (1) enable the controlling business to hire new permanent full-time employees in the commonwealth; or (2) enable the controlling business to retain at least 50 permanent full-time jobs at a facility located in a gateway city or in an adjacent city or town that is accessible by public transportation to residents of a gateway city and such jobs otherwise would be relocated outside of the commonwealth; (iii) the controlling business has committed to maintaining new and retained jobs for a period of at least 5 years after the completion of the proposed project; (iv) the proposed project appears to be economically feasible and the controlling business has the financial and other means to undertake and complete the proposed project; (v) unless the proposed project will be located in a gateway municipality, a duly authorized representative of the controlling business has certified to the EACC that the controlling business would not have undertaken the proposed project but for the EDIP tax credits and local tax incentives available to it pursuant to this chapter; and (vi) the proposed project complies with all applicable statutory requirements and with any other criteria that the EACC may prescribe by regulation, policy or guidance.

The EACC shall, by regulation, policy or guidance, provide for the contents of an application for project certification which may include a requirement that the controlling business provide written evidence to support the certification provided for in clause (v).

(c) A certified project shall retain its certification for the period specified by the EACC in its certification decision; provided, however, that such specified period shall be not less than 5 years or more than 20 years from the date of certification.

(d) Notwithstanding subsections (b) and (c), the EACC may, by guideline or regulation, establish a program to incentivize businesses to occupy vacant storefronts in downtown areas. The EACC may award EDIP tax credits to storefront tenants on a competitive basis, taking into account factors including, but not limited to: (i) the number of jobs to be created; (ii) the volume of pedestrian traffic to be generated; (iii) potential synergy with other downtown businesses; (iv) whether there is a matching contribution from the municipality or the landlord; (v) commitment to storefront improvements; and (vi) whether the municipality has made local plans or investments to revitalize the downtown. Certification of such a project shall require that a business commit to occupying the vacant storefront for a period of not less than 1 year, but the business shall not be required to invest in improvements or create new jobs. The EACC shall not award more than $500,000 in EDIP tax credits in a calendar year to projects certified pursuant to this subsection.