Financial Incentives
Single Tax Rate
Northampton is one of the few larger communities in Western Massachusetts that offers a single tax rate for commercial and residential real estate. This keeps our commercial tax rate lower than many communities our size or larger.
Economic Development Incentive Program (EDIP) - Tax Increment Financing
The City of Northampton is part of the Franklin Regional Economic Target Area which allows Northampton to use local and state tax incentives to attract new business, expand existing businesses, and stimulate job creation and business investment in Northampton. Please contact the Community and Economic Development Director for more information or to discuss your project.
Commonwealth of Massachusetts Incentives
Information and links on business development financial incentives available from the Commonwealth of Massachusetts. Includes tax incentives, training funds, brownfields financing, job creation incentive payments, job training grants, business development financing, and more.
MA Film Tax Credit
The Massachusetts Film Tax Credit has been dramatically upgraded since 2006. Filmmakers that shoot at least half of their movie or spend at least half of their production budget in Massachusetts are eligible for a tax credit equal to 25 percent of their total spending in Massachusetts including salaries over $1million.
The spending threshold begins at $50,000 and “digital media projects” are eligible extending the benefits of the film tax credit to locally based, small independent and documentary filmmakers.
Select USA Investment Incentives
President Obama has created Select USA to promote business investment in the United States. This website lists the advantages of locating business in the USA and the financial incentives available.
Federal Economic Stimulus 2009 Tax Incentives
National Health Care Tax Credit
The new national health reform law ("PPACA") signed into law by the President on March 30, 2010 includes a small business health care tax credit, effective immediately, which is designed to help small employers offer health insurance coverage for the first time or maintain coverage they already have.
The credit is available to small employers that pay at least half of the cost of individual coverage for their employees in 2010. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and middle-income workers.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt (non-profit) organizations. The maximum credit goes to the smallest employers - those with 10 or fewer full-time equivalent (FTE) employees - paying annual average wages of $25,000 or less, but partial credits are available for employers with up to 25 FTEs and with average wages up to $50,000. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt organizations, the IRS will provide further information on how to claim the credit.
For More Information:
The IRS has issued several materials and resources to help employers determine if they are eligible, and if so, how to go about getting the tax credit:
• YouTube Video: www.youtube.com/watch?v=85i1kzIG57k
• Detailed Guidelines: www.irs.gov/pub/irs-drop/n-10-44.pdf
• 3-step Guide: www.irs.gov/pub/irs-utl/3_simple_steps.pdf
• FAQ: www.irs.gov/newsroom/article/0,,id=220839,00.html
• One-page flyer: www.irs.gov/pub/newsroom/taxcreditflyer.pdf