Bill passed to expand tax breaks for businesses
BOSTON - The state Senate's passage of a bill doubling the number of Economic Target Areas in Massachusetts to 40 yesterday will allow other state communities to benefit from tax breaks and business incentives already enjoyed by towns in the Milford region.
The program -- which grants tax breaks and provides incentives for business development -- seems to be working with various degrees of success, according to local officials. Towns such as Milford actively use their tax breaks while others, like Franklin, use them occasionally.
Franklin Town Administrator Jeffrey Nutting said he has only had to use the special tax incentives once because of his town's already low tax rate. But he said he appreciates having the option.
"It's another tool available to us," said Nutting. "We would use it if we had something we felt strongly about."
Communities can qualify as Economic Target Areas, or ETAs, if they have unemployment rates 25 percent above the state average and have commercial vacancy rates of 20 percent. Bellingham, Blackstone, Franklin, Hopedale, Medway, Milford, Mendon, Northbridge and Uxbridge are all part of an ETA.
Designated target areas receive property tax exemptions based on a negotiated percentage of the property's value, through a program called tax increment financing. The areas are also eligible for a 10 percent abandoned building tax deduction.
"Target areas are extremely important because they allow the local officials to engage in tax increment financing," said state Rep. Marie J. Parente, D-Milford.
The sponsor of the bill, Sen. Harriette L. Chandler, D-Worcester, hopes more communities can benefit from this extra incentive. The state put $66.2 million into ETAs between 1995 and 2004. In return, the program netted $66.4 million in economic development related to some 50,000 jobs, Chandler said.
"ETAs help spur economic development and create jobs in communities most in need," said Chandler.
The House has already approved the bill so it will be sent to Gov. Mitt Romney for final approval.