Code of Massachusetts Regulations
402 CMR - ECONOMIC ASSISTANCE COORDINATING COUNCIL
Title 402 CMR 2.00 - Economic Development Incentive Program
Section 2.02 - Definitions
As used in 402 CMR 2.00, the following words shall, unless the context clearly requires otherwise, have the following meanings:
Business. A private business corporation, partnership, firm, unincorporated association or other entity engaging or proposing to engage in economic activity within the Commonwealth, and any affiliate thereof, the income of which is subject to taxation under M.G.L. c. 62 or M.G.L. c. 63.
Certified Project. A proposed project that has been certified by the EACC consistent with 402 CMR 2.05.
Control. The power to direct the management and policies of a business or a facility thereof, directly or indirectly, through the exercise of voting rights, by contract, or otherwise.
Controlling Business. A business which controls a business or a facility thereof; provided that in the event that the ownership of a business, the operation of real estate, and/or the employment of employees is divided among entities under a common control, then the EACC may treat one or more of such entities as the Controlling Business for purposes of 402 CMR 2.00.
Director. The Director of the Massachusetts Office of Business Development.
Economic Assistance Coordinating Council or EACC. The Council established pursuant to M.G.L. c. 23A, § 3B.
Economic Development Incentive Program or EDIP. A program of various economic development incentives established pursuant to M.G.L. c. 23A, including EDIP tax credits and local tax incentives to promote job creation and increased business development and expansion in the Commonwealth.
Economic Opportunity Area or EOA. An area of the Commonwealth, located wholly within an Economic Target Area, which is designated as such by the EACC pursuant to 402 CMR 2.09.
Economic Target Area or ETA. An area of the Commonwealth designated as such by the EACC pursuant to 402 CMR 2.09.
EDIP Tax Credits. The tax credits authorized by the EACC pursuant to M.G.L. c. 23A, § 3D and claimed by a taxpayer pursuant to M.G.L. c. 62, § 6(g) or M.G.L. c. 63, § 38N.
Employee. A person who is in an employment relationship with an employer subject to, and within the meaning of, the Massachusetts unemployment insurance statute, M.G.L. c. 151A, § 1.
Facility. The physical location, in real property, which may include multiple buildings, owned or leased by a business of a commercial, manufacturing or industrial activity, division or component controlled by that business, or any real estate project which involves the construction or renovation of real property to serve such purpose, or any combination of the foregoing, at which are employed, or are projected to be employed, permanent full-time employees of the Controlling Business.
Full-time Employee. An employee who has been paid by an employer during its taxable year an amount equal to at least the maximum amount of "wages" with respect to which an employer is required to make contributions under M.G.L. c. 151A, § 14.
Gateway Municipality. A municipality with a population greater than 35,000, a median household income below the Commonwealth's average and educational attainment rates that are below the Commonwealth's average, as measured by the most recent American Community Survey (ACS) of the U.S. Bureau of the Census.
Metropolitan Area. A metropolitan statistical area (MSA) or a primary metropolitan statistical area (PSMA), as defined by the U.S. Bureau of the Census.
Municipal Application. An application submitted by a municipality to the EACC requesting the designation of an area as either an ETA or an EOA, or both.
Municipality. A city or town in the Commonwealth or, in a case in which two or more cities or towns are acting jointly hereunder, then all cities and towns participating in such joint effort.
Permanent Full-time Employee. A full-time employee who is paid wages by a Controlling Business and who:
(a) at the inception of the employment relationship, does not have a termination date which is either a date certain or determined with reference to the completion of a specified scope of work;
(b) works at least 35 hours per week; and
(c) receives employee benefits at least equal to those provided to other full-time employees of the Controlling Business; provided, however, that "permanent full-time employee" shall not include contractors or part-time employees who may be included in a calculation of the Controlling Business' full-time equivalent workforce.
Poverty Rate. The poverty rate, as defined by the Bureau of the Census, using the most recent census data available as of the date of submission of a municipal application.
Proposed Project. A proposal submitted by a Controlling Business to the EACC for designation as a certified project.
Real Estate Project. The construction, rehabilitation or improvement of any building or other structure on a parcel of real property which, when completed, will result in at least a 100% increase in the assessed value of the real property over the assessed value of the real property prior to the project.
Replacement or Relocation of Permanent Full-time Employees. Any transfer and/or substitution of permanent full-time employees by a participating business where there is no net increase in the number of permanent full-time employees of the business in the Commonwealth. Replacement or Relocation of Permanent Full-time Employees shall not include any situation where there is a net gain in the number of permanent full-time employees of a business in the Commonwealth as a result of a certified project, even though certain employees may have moved from one facility of the business to another facility within the Commonwealth.
Secretary. The Secretary of Housing and Economic Development.
Special Tax Assessment. A temporary reduction in local real property tax authorized by M.G.L. c. 23A, § 3E(c).
STA Agreement. A written agreement by and between a municipality and an owner of real property setting forth the terms and conditions of a special tax assessment.
STA Parcel. One or more parcels of land included in a STA agreement.
STA Project. A commercial, industrial or mixed-use development project that receives the benefit of a special tax assessment.
Substantial Sales Outside of the Commonwealth. On an annual basis, a percentage as determined by the EACC, of a Controlling Business's products or services generated at the facility are sold in the regular course of the Controlling Business's trade or business to customers not resident in the Commonwealth.
Tax Increment Financing. A temporary reduction in local real property tax authorized by M.G.L. c. 40, § 59, and approved by the EACC pursuant to M.G.L. c. 23A, § 3E(b).
TIF Agreement. A written agreement by and between a municipality and an owner of real property setting forth the terms and conditions of a proposed tax increment financing.
TIF Eligible Area. An area of a city or town that has been identified through zoning, planning or other municipal action as a location presenting exceptional opportunities for increased economic development. TIF eligible areas shall include all areas zoned to allow industrial and commercial uses by right, and at the discretion of the city or town may include other areas where new growth is desirable due to availability of infrastructure, access to transportation networks, proximity to downtown areas or the need for increased employment opportunities for residents.
TIF Parcel. One or more parcels of land included in a TIF agreement.
TIF Project. A commercial, industrial or mixed-use development project that receives the benefit of tax increment financing.
