Code of Massachusetts Regulations
402 CMR - ECONOMIC ASSISTANCE COORDINATING COUNCIL
Title 402 CMR 2.00 - Economic Development Incentive Program
Section 2.05 - Certification of Proposed Projects

Universal Citation: 402 MA Code of Regs 402.2

Current through Register 1531, September 27, 2024

(1) Applications. A Controlling Business may apply for certification of a proposed project by submitting an application to the EACC for review and approval. The application shall be in a form designated by the director and shall include all information that the EACC is required to consider in determining whether to certify a proposed project under the provisions of M.G.L. c. 23A, § 3D. The director may also issue instructions to assist the Controlling Business to use in completing the applications, which may include guidance regarding any factors that may enhance a proposed project's potential to receive favorable consideration and presentation to the EACC for its review and approval.

(2) Timeframe for Decision. The EACC shall evaluate, grant, or deny certification of a proposed project within 90 days of its receipt of such proposal; provided, however, that if the EACC determines that an application for project certification is incomplete, it may either reject such proposal and return it to the applicant or request additional information to complete the proposal. If the EACC requests additional information, the 90-day review period shall commence upon receipt of the additional information requested. If the EACC fails to act on an application for project certification within the 90-day period as described in 402 CMR 2.05(2), the proposed project shall be considered to have been approved for a term of five years but such approval shall not constitute the grant or approval by the EACC of any EDIP tax credits.

(3) Decisions. The EACC may certify a proposed project subject to any conditions that the EACC deems necessary or appropriate to incent the creation of new jobs in the Commonwealth. The EACC may limit any incentive or EDIP tax credit available to a project pursuant to a specific dollar amount or time duration or in any other manner deemed appropriate by the EACC. The EACC may decline to certify a project if the amount of the tax benefit that the business would receive if the project were certified is disproportionately high in relation to the number of permanent full-time jobs that are expected to be created by the project, other benefits provided by the project to the municipality or to the state.

(4) EDIP Contracts. Each recipient of EDIP tax credits awarded pursuant to 402 CMR 2.05(4) shall execute an EDIP contract approved in form and substance by the director. The contract terms may contain provisions related to:

(a) The Controlling Business's obligation to create jobs and to maintain these new jobs for a time period of not less than five years after the date the jobs are first

(b) filled;

(c) The schedule on which the Controlling Business commits to create the new jobs;

(d) The schedule governing when and in what amounts EDIP tax credits may be claimed;

(e) The entity that is eligible to claim the EDIP tax credits awarded by the EACC;

(f) Requirements to submit information to the director regarding job creation and exercise of EDIP tax credits;

(g) Consequences and procedures for failure to meet the Controlling Business's job creation commitments; and

(h) Such other matters as the director in his or her discretion may from time to time require.

(5) Transfer of Ownership. A facility that has been designated a certified project shall not lose its certified project status upon a transfer of ownership of such facility provided that:

(a) an instrument of assignment is duly executed between the business that originally owned the facility and the successor business, which instrument of assignment shall contain a written acceptance by the successor business of the duties and obligations of the original business including, without limitation, the duties and obligations as such are represented in the EACC's terms of approval of said facility as a certified project; and

(b) the EACC approves by resolution said assignment, such approval to be based on a determination of the EACC that said successor business has the intention and capacity to carry out the duties and obligations of the original business.

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