Bill > S1856

This bill provides tax incentives for small-scale commercial development in gateway municipalities, which are defined as cities or towns with a population between 35,000 and 250,000, a median household income below the state average, and an educational attainment rate below the state average. The key provisions of the bill include: 1. Allowing cities and towns to adopt a "Gateway Municipality Tax Increment Financing" (GM-TIF) plan, which can provide property tax exemptions of up to 100% for a term of up to 30 years on eligible commercial properties in designated GM-TIF areas. 2. Providing a 20% state tax credit for the cost of improving any commercial building in a GM-TIF area, as approved by the Secretary of Housing and Economic Development. 3. Allowing a credit against the state corporate excise tax of up to 50% of the tax liability, with the possibility of the credit being refundable, for approved projects for commercial rental and build-out opportunities in multi-story commercial buildings in gateway municipalities. 4. Allowing corporations to deduct 20% of the cost of renovating any abandoned or underutilized building located within either an economic opportunity area or a GM-TIF area when determining their net income for state corporate excise tax purposes. The overall goal of the bill is to encourage and support small-scale commercial development in economically challenged gateway municipalities across the state.

Budget and Finance

https://malegislature.gov/Bills/193/S1856