Bill > H2616

This bill establishes a new tax credit program in Massachusetts for restaurants and hotels that undertake significant renovations. The program, administered by the Massachusetts Office of Business Development (MOBD), allows qualified businesses that own and operate hotels or restaurants to apply for certification. To qualify, hotels must spend at least $2 million on renovations, with a minimum of $10,000 per guest room, while restaurants must spend at least $100,000 on improvements to dining areas, kitchens, exteriors, and other common spaces. Once a business is certified as a "certified applicant" after submitting project plans and financial information, they can receive payments from the Department of Revenue. These payments will be equal to 25% of the increase in sales tax revenue generated by the business after the renovations are completed, compared to their average sales tax collection in the three years prior to the project. However, the total incentive payments a business can receive are capped at 20% of their total qualified renovation expenditures, and payments will cease once this cap is reached.