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There are certain state economic incentives available to
certified projects. A “certified project” is a business that is
expanding its existing operations, relocating its operations or
building new facilities and creating permanent new jobs within
an Economic Opportunity Area, as defined by the state.
New Bedford is an accepted Economic Target Area and within the
city are numerous Economic Opportunity Areas. Certified projects
may receive state tax incentives, including a five percent
investment tax credit or a ten percent abandoned building tax
deduction. In addition, such businesses may also qualify for
municipal tax incentives.
Tax Incremental Financing
The business applicant may be eligible for a property tax
exemption based on a percentage of the value of the property
added through new construction or through significant
improvement. This shall be for a period of not less than five,
but not more than twenty years. Consideration of a TIF is
subject to negotiations with the NBEDC.
5% State Investment Tax Credit
This is a program offered by the state for tangible, depreciable
investments. Land, buildings and equipment can all be qualifying
investments.
10% Abandoned Building Tax Deduction
The business applicant may be eligible for a tax deduction of
10% of the total renovation costs. The building in question must
have been at least 75% vacant for a minimum of 2 years prior to
the application.
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