Mass. business development official outlines tax incentives, TIFs and site tools for Lakeville

Maria Morasco, a representative of the Massachusetts Office of Business Development, told the Town of Lakeville Economic Development Committee on May 2 that her office is “the one‑stop agency for businesses seeking to expand and relocate in Massachusetts” and offered to help the town vet and negotiate incentives for prospective companies.

Morasco said the state’s economic development incentive program primarily awards tax credits to firms that commit to creating permanent full‑time jobs and generating outside sales. “We’re looking for businesses that will create permanent full time jobs and have outside sales,” she said. She told the committee tax credit awards can range from roughly $50,000 to as much as $1 million, depending on job creation and private investment.

Morasco explained several tools municipalities can use. Tax increment financing (TIF) allows a town to exempt a business from taxes on the increase in assessed value from a project for up to 20 years. The municipality may tailor the percentage and the schedule (for example, 100% relief in year one that phases down in later years) but the TIF must be approved by the local board and placed on the town meeting warrant.

She described a separate special tax assessment that can apply when a company occupies and renovates existing property without producing a large assessed value increase. Under changes that took effect Jan. 1, Morasco said municipalities can grant an assessment that reduces the tax on existing value by no less than 50% in year one, no less than 25% in years two and three, and no less than 5% in year five, with actual terms set locally.

Morasco noted state incentives interact with Department of Revenue rules. Manufacturers registered with the Department of Revenue may qualify for a 3% investment tax credit, sales tax exemptions on materials used in manufacturing, and exemptions from local personal property tax — but she said DOR’s definition of “manufacturer” and eligibility can turn on corporate form and other technical factors.

On abandoned properties, Morasco said the state offers an abandoned‑building renovation deduction: a 10% deduction for qualifying hard costs where a building has been roughly 75% vacant for at least 24 months. She encouraged the committee to identify sites or districts the town could designate so potential renovators would know whether they would be eligible.

Morasco identified partners and practical next steps. She recommended listing ready sites on MassEcon’s property portal, described MassDevelopment and the MassWorks program as possible sources of infrastructure assistance, and offered to send the committee sample TIF guidelines, a model letter of intent and other materials to include in the town’s economic development “playbook.” She said local monitoring of job commitments generally relies on annual, self‑reported data to the state, with towns able to view reports associated with local agreements.

Committee members raised Lakeville Hospital — a privately owned, long‑vacant property discussed later in the meeting — as one possible candidate for state tools. Morasco said MassDevelopment and other agencies sometimes work with towns on brownfield or distressed properties and that she could help coordinate those contacts. She also told the committee about a company connected to Greentown Labs that is seeking about 60 acres and has said it would create 10 jobs over five years if a site can be found in the region.

Morasco concluded by offering follow‑up: “If I don’t know the answer, I will do my best to find out who can give it to you,” she told the committee, and said she would send sample materials and contact names for MassDevelopment and MassEcon.