Tax Increment Financing

New Bedford’s Tax Incentive Program

The Tax Increment Financing (TIF) Program is administered by the City of New Bedford and is a partnership between the municipality, and an expanding company. TIFs are flexible, locally driven, and a premier economic development tool for participating communities in Massachusetts. 

In this program, participating companies receive favorable local tax treatment in exchange for job creation and commitments for private investment. Under the state legislation, the City of New Bedford is an Economic Target Area and Gateway Municipality, and utilizes this designation to address blighted, distressed, and underutilized areas and sites. A company that intends to locate or expand operations in the city may submit a project proposal for certification to the City of New Bedford Tax Increment Financing Board. 

Types of eligible projects in the TIF Program include; Expansion Projects, Enhanced Expansion Projects, Manufacturing Retention Projects, or Abandoned Building Renovation Projects.

Massachusett’s Economic Development Incentive Program

The Economic Development Incentive Program (EDIP) is designed to foster the creation of quality full time jobs in every corner of the Commonwealth by responsibly awarding attractive tax credits to businesses committed to starting and growing in Massachusetts. The program directs awards to projects that leverage private investments to create jobs and generate new economic activity across the state. Approved projects typically receive an award aligned with their job creation commitment and other factors—generally between $10,000 and $15,000 per job.

In a Gateway Municipality such as New Bedford, businesses looking to propose for such areas or sites are eligible for greater incentives and can be paired with the local tax incentives offered through the New Bedford TIF Program.

To learn more about the Massachusetts EDIP program, click here.

Certified Projects
To be considered for designation as a certified project, the project proposal must provide for job creation, and new investment in a way that is consistent with TIF Program policy and guidelines and the NB Works Guiding Principles expressed by the City to ensure that opportunities abound for all its residents. 

A certified project proposal for the New Bedford TIF Program shall demonstrate: 

• a strong likelihood that the project will provide a significant influx of growth; or
• a strong likelihood it will provide for the creation of a significant number of new jobs and not merely replacement or relocation of jobs within the Commonwealth
• or a strong likelihood that the private investment will contribute significantly to the resiliency of the local economy.

Projects must also create a minimum of 10 jobs with the majority filled by New Bedford residents, have a value greater than $250,000, offer opportunities for New Bedford based companies to participate in construction and other services, and demonstrate that without this incentive the company would not undertake this investment or would need to relocate out of the city.

In exchange for job creation and investment commitments, a company’s certified project becomes eligible to receive local tax benefits that include:

• Local property tax exemptions pursuant to executed TIF or STA agreements
• 100% personal property tax exemption (for executed TIF agreements only)
• Municipal support for companies seeking state incentives through the EDIP

Reference Documents
Certified project proposals must comply with the eligibility guidelines as established by the City of New Bedford Tax Increment Financing Board. A full description of these requirements is provided in the City’s TIF Program Policy and Guidelines.  The NBEDC administers the Tax Increment Financing Program for the City of New Bedford and can guide your company through the application process, City/State approvals, and subsequent annual compliance reporting.