(1) The EACC may award to the Controlling
Business of a certified project, or to its affiliate, EDIP tax credits
available under M.G.L. c. 62, § 6(g) or M.G.L. c. 63, § 38N. The
amount of any such credits awarded, and the schedule on which such credits may
be claimed, shall be determined by the EACC, in its sole discretion, based on
the following criteria, weighted and balanced as the EACC shall determine
appropriate on a case-by-case basis:
(a) The
degree to which the certified project is expected to increase employment
opportunities for residents of the commonwealth, with consideration given to
the number of new full-time jobs to be created, the number of full-time
employees to be retained, the salary, benefits or other compensation that will
be paid to the employees, and the amount of new state income tax to be
generated;
(b) The timeframe within
which new jobs will be created and the commitment of the Controlling Business
for how long they will be maintained, with preference given to certified
projects in which a significant portion of the new jobs shall be created within
two years;
(c) The amount of
capital to be invested by the Controlling Business in the certified
project;
(d) The degree to which
the certified project is expected to generate net new economic activity within
the commonwealth by generating substantial sales from outside of the
commonwealth;
(e) The extent to
which the project is expected to contribute to the economic revitalization of a
Gateway municipality or increase employment opportunities to residents of a
Gateway municipality;
(f) The
economic need of the municipality or region in which the certified project is
located, as determined by income levels, employment levels, or educational
attainment level;
(g) The amount
and type of local support provided by the municipality in which the certified
project will be located;
(h) The
amount or timing of incentives, for which the Controlling Business provides
documentation, offered by an entity located outside the Commonwealth to
undertake the certified project in such foreign jurisdiction;
(i) Whether the Controlling Business has or
the certified project proposes to locate its headquarters in the
Commonwealth;
(j) The extent to
which the project supports the economic development priorities of the
Secretary;
(k) Whether the tax
credits the Controlling Business is requesting would be refundable under the
provisions of
402 CMR
2.06(3) or would be applied
to the Controlling Business's ordinary income or corporate excise
tax;
(l) Commitments, if any, made
by the Controlling Business to use Massachusetts firms, suppliers and vendors,
or to retain women or minority-owned businesses, during the construction of the
certified project; and
(m) Whether
the Controlling Business has received an award of EDIP tax credits in the past,
and if applicable its compliance with past job creation requirements.
(2) When making an award of EDIP
tax credits pursuant to
402 CMR
2.06(1), the EACC may at its
sole discretion limit the award to a specific dollar amount, may specify the
schedule on which such credits may be claimed, including an award of credits
that spans multiple years. The EACC also may limit or restrict the right of the
Controlling Business to carry unused credits forward to future tax years, and
no carry forward shall be permitted unless expressly permitted in the EDIP
contract. When a Controlling Business expects that new jobs will be created
over a period of multiple years, the EACC ordinarily shall allocate and make
such credits available to the taxpayer on a schedule that ensures credits are
claimed on or after the date that the jobs are created.
(3) The EACC shall have the discretion to
grant refundable credits to a certified project, subject to the statutory cap
on the amount of refundable credits that may be granted in a calendar year.
Preference for refundable credits shall be given to applicants which are:
(a) growing, early-stage ventures with no
projected revenue or tax liability over the period in which job creation is
expected to occur; and
(b) projects
expected to create significant new employment for which a refundable credit is
necessary to make the project financially feasible.
(4) MOBD shall require the recipient of EDIP
tax credits awarded pursuant to
402 CMR
2.06(4) to execute an EDIP
contract after the EACC awards EDIP tax credits under
402 CMR
2.06(4). No EDIP credits may
be claimed or taken until the Controlling Business has executed an EDIP
contract in form and substance acceptable to MOBD. Failure by a Controlling
Business or its affiliate to execute an EDIP contract within 60 days of the
EACC award shall be grounds for revocation of the project certification as
provided in
402 CMR
2.08.
