FROED One Government Center Fall River, MA 02722-7700 Tel 508-324-2620 Fax 508-677-2840 info@froed.org		Tax Increment Financing The City of Fall River offers businesses tax incentives through its designation by the Commonwealth of Massachusetts as an Economic Target Area. "Certified Projects" are eligible for local Tax Increment Financing (TIF) and state incentives including a 5% Investment Tax Credit (ITC) and 10% Abandoned Building Tax Deduction (ABTD). The Fall River Office of Economic Development provides technical assistance throughout the certification process. Since the TIF program's inception in 1994, Fall River has assumed a leadership role and been among the state's most active TIF communities. The city has certified 45 projects to date, representing a projected 3,542 new jobs, the retention of 5,452 jobs, and $253,780,379.00 in private investment. Fall River's aggressive stance has played a dramatic role in reshaping the local economy. TIF Guidelines New Jobs Exemption Schedule 1 - 10 5 years - 25% exemption each year 11 - 39 5 years - 100%, 75%, 50%, 25% and 1% 40 or more negotiable up to 20 years Other State Tax Incentives Businesses are discovering that the tax incentives offered by the Commonwealth of Massachusetts are among the best in the country. Here are a few examples: Investment Tax Credit - Massachusetts provides a standard 3% ITC to manufacturing and research & development companies for the construction of production facilities and the purchase or lease of equipment. A 5% ITC is available to all businesses, not just manufacturers, that are certified through the TIF program. This credit can be carried forward to future tax years. Abandoned Building Tax Deduction - Redevelopment projects in one of Fall River's several Economic Opportunity Areas may be eligible for the state's 10% ABTD. Businesses may qualify for the ABTD if the redeveloped building had a previous vacancy rate of 75% or higher for a minimum of two years. TIF certification is not required. R&D Tax Credit - Businesses that invest in research & development receive a 10% tax credit for in-house activity and a 15% credit for research contracted with other state industries such as hospitals and universities. These credits are the highest in the nation, and businesses also benefit from a 15-year carry-forward provision.