Montague has 5 Economic Opportunity Areas (EOA) that have been certified by the Massachusetts Economic Assistance Coordinating Council under the Mass. Economic Development Incentive Progran
|Downtown Turners Falls
|Village Center Millers Falls
|Airport Industrial Park
|Sandy Lane Industrial Area
Under the Massachusetts Economic Devleopment Incentive Program, an Economic Opportunity Area is an area designated by a municipality that identifies a particular need and priority for economic development. The area must meet the State definition for an area that is blighted, decadent, or substandard. The areas have been designated for a period of 20 years.
State and Local Tax Incentives Available
State Investment Tax Credit (Economic Opportunity Area Credit) – Between 1-10% investment tax credit on State income taxes towards all tangible depreciable investments associated with the project (includes qualifying personal and tangible property that is acquired, constructed, reconstructed or erected, has a useful life of four years or more, and is either owned or secured through an operating lease). This increases the state investment tax credit for
manufacturers from 3% to up to 10% at the discretion of the State. Certified projects that are not manufacturers may take advantage of the tax credit.
10% Abandoned Building Tax Deduction – Allows for a 10% State income tax deduction for all costs associated with renovating an abandoned building for commercial use. An abandoned building is defined as a building located within an Economic Opportunity Area that has been at least 75% vacant for at least the previous two years. The building must be designated abandoned by the Economic Assistance Coordinating Council. The renovation deduction may be taken in addition to any other deduction for which the renovation costs qualify, e.g., the depreciation deduction on improvements to property. This deduction is available for personal income taxpayers or for corporations with tax liability determined by net income.
Municipal Tax Increment Financing (TIF) Exemption – A percentage exemption on the increased value of a parcel resulting from an expansion or improvement. Exemptions can be from 0% to 100% of the increased value for a period of between 5 and 20 years. The base value before improvements is taxed at the full assessed value. TIF agreements are negotiated between the Town and the Certified Project candidate.
Contact the Montague Planning and Conservation Department