Incentive Programs Available for Gateway City Businesses
by Admin | May 24, 2016 | 0 comments
Entrepreneurs in the Commonwealth face many challenges when starting a business including financial risks that can directly impact a company’s ability to succeed. Insufficient startup funds pose a substantial threat to a new business and securing adequate capital is the key to survival. Just as important as receiving necessary funding is locating business programs that help your company improve its bottom line. There are many incentive and assistance programs that can prove beneficial to businesses of all sizes especially in Gateway Cities that have become a target for economic development as supported by the Baker Administration.
With the goal of helping your business thrive and grow, both the State of Massachusetts and Federal Government offer a variety of tax credits and incentives. The Economic Development Incentive Program (EDIP) is a tax incentive program designed to foster job creation and stimulate business growth throughout the Commonwealth. Participating companies may receive state and local tax incentives in exchange for job creation, manufacturing job retention and private investment commitments. The Work Opportunity Tax Credit (WOTC) is a federal tax credit incentive that employers may receive for hiring individuals from certain target groups who have consistently faced significant barriers to employment. The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while participating employers are compensated by being able to reduce their federal income tax liability.
There are also a number of business incentives and assistance programs for specific cities within the State of Massachusetts. For example; Lawrence MA was chosen by HUD as one of 40 National Urban Renewal Communities and has target areas designated for renewal, providing businesses with substantial federal tax deduction incentives to invest in the city. Qualified businesses that hire local residents and invest or operate in commercial property located within these areas are entitled to special federal tax deductions, credits and capital gains exclusions. In fact, about 75% of Lawrence is located in a U.S. Small Business Administration’s HUBZone which allows for loan guarantee programs as well as bid-differentials on federal contracts. During the first year of business, a little research and time investment could be the difference between struggling to get off the ground or working towards true sustainability. Lawrence and many other Gateway Cities offer attractive programs that assist small businesses, start-up and expanding companies.