4. How quickly does MassCEC expect grant funds to be spent, and how does that relate to the three-year performance period?
Shovel-ready projects – those that can spend the majority of the grant by June 30, 2027 (the end of FY27) – are prioritized. Otherwise, grants run for a maximum of three full fiscal years after contract execution, and funding does not roll over between fiscal years, so project spending accurately by year in your Project Budget template (Attachment 2). See Section C (p. 6) of the RFP.
5. What does MassCEC mean by “shovel-ready,” and does a facility or lease need to be secured before an award is made?
Shovel-ready projects – those that can spend the majority of the grant by June 30, 2027 (the end of FY27) – are prioritized. Secured space isn’t required, but it’s strongly preferred. Submit as much supporting documentation as you have: signed leases, permits, engineering drawings, construction schedules, vendor quotes, and Massachusetts vendor lists. The application asks what’s been done to date, and grantees must verify readiness at the time of award. See Section C (p. 6) and Section F (p. 12) of the RFP.
6. It’s specified that there will be a strong preference for the majority of program funds to be spent before July 2027. Given the short time period between expected award date and July, can program funds be used to reimburse purchases made before the actual award date?
No. Program funds can only be used to reimburse purchases after the execution of a grant agreement.
7. If equipment with a long lead time is delivered later than planned and pushes spending into the next fiscal year, is there any flexibility to shift project grant spend?
Funds don’t roll over between fiscal years, so project your spend as accurately as possible. In this instance, You can adjust projected spend during contracting, but not after. This round prioritizes spend before June 30, 2027.
8. If our expansion is a multi-year or phased project, should we request the full amount now or hold part of the project for a future funding round?
Submit as much as you can now, and describe the timing and cost of each phase in your application. We’ll align scope to the spending window during contracting. The program runs twice a year, with the next round due date as April 1, and you can reapply for a later phase.
9. If a binding purchase order or deposit is placed prior to contract execution, but final delivery, invoicing, and title transfer occur after Grant Agreement execution, will the post-execution milestone payments be eligible for grant reimbursement and 50/50 matching?
Yes, only costs after a grant agreement is executed can be submitted for reimbursement, in this case: final delivery, invoicing, etc. Similarly, only cash outlays provided by the grantee will be considered cost share after the grant agreement is executed.
10. Could you explain the difference between the $10M+ investment scoring consideration and the 50/50 cash cost share requirement?
The $10M is a scoring consideration under the “Investment in Massachusetts” criteria in Section E of the RFP. We use this benchmark to evaluate the scale and significance of the applicant’s commitment to Massachusetts through capital investment, business expansion activities, and long-term presence. It can include spending you’ve already made, up to two years before your application. The 50/50 match is a contractual requirement you must meet and maintain during the grant period, using cash outlays made after contract execution. Past spending and cost share count toward the $10M consideration. Cost-share only includes future spending.
11. What types of spending count toward the $10M+ investment scoring consideration, and how far back can that spending have occurred?
Broadly, your full project spend – CapEx, OpEx. Costs already incurred count if they reasonably fall within your project scope and were incurred no more than two years before application. Document them in the Project Budget template (Attachment 2) and your Application on Submittable.
12. If our company already owns equipment located outside Massachusetts and plans to move it here as part of the project, does what we previously paid for it count toward the $10M+ investment consideration?
Yes, if the assets will be relocated to Massachusetts as part of the project scope and the costs were incurred within two years. The grant can also reimburse relocation and permanent reinstallation costs. See Section C (p. 7) and Section E (p. 10) of the RFP.
13. Are certain kinds of business expansion, such as manufacturing versus R&D, weighted more heavily in the “Investment in Massachusetts” scoring criteria?
Considerations include investments exceeding $10 million; expansion of manufacturing, headquarters, R&D, or other functions; establishment of a new location; and introduction of a new business function to the state. See the “Investment in Massachusetts” criteria in Section E (p. 11) of the RFP.
14. What expenses can an applicant use to satisfy the 50/50 cash cost share requirement?
Cash cost share is the portion of total project costs covered by the applicant rather than MassCEC. Any of the budget categories listed in the Project Budget template (Attachment 2) can count toward cost share.
15. Which funding sources are allowed to serve as the 50/50 match – for example, equity, venture debt, crowdfunding, or other state grants?
Any source except state and quasi-state grants and in-kind contributions. For example: equity, venture debt, equipment financing, federal grants, and Regulation Crowdfunding (Reg CF) rounds all qualify. Existing MassCEC awards do not. You’ll need a commitment letter from each matching source with your application. See Section C (p. 5) and Section D (p. 10) in the RFP.
16. Can a Business Builds: Climatetech grant be used as our matching contribution on a separate federal grant award?
Yes, as long as MassCEC reimburses eligible capital expenses for the Federal Grant. We’re happy to provide any support letters after you’re awarded our grant. Check the timing, our fiscal year deadlines for grant expenditures are strict. See Section C (p. 6) in the RFP.
17. Can research, design, or engineering work performed by an outside subcontractor count toward the 50/50 cost share or reimbursement?
For cost share: yes, if it’s a cash outlay that the applicant is paying for within the project scope and documented in the Project Budget template (Attachment 2). For reimbursement: reimbursable subcontractor costs are the design, engineering, and installation work tied to the capital asset being purchased – not general research, testing, or OpEx. Your own staff time is never reimbursable. See Section C (pp. 7 – 8) in the RFP.
18. Does specialized third-party FOAK project management qualify as an eligible capital cost if external contractors perform it and it is directly capitalized as part of the asset buildout?
It depends. Third-party labor is eligible when it’s capital labor: installation, engineering, and construction services required to place equipment or infrastructure into service. It’s ineligible when it’s operating expenses: performing non-capitalizable tasks, such as project execution, evaluation, outreach, etc. See Section C in the RFP (p. 7).
19. How does MassCEC measure the 50% job growth figure used in the “Job Growth Potential” scoring criteria, and when does the clock start?
Over five years, from contract execution. Job growth is a scoring criterion, not an eligibility requirement. Preference goes to projects estimating at least 50% employment growth with wages above the statewide average individual income. Grantees must maintain job commitments during the grant term and for at least three years afterwards. See Section E (p. 11) and Section G (p. 13) in the RFP.
20. Does a strong applicant need to demonstrate both 50%+ job growth and $10M+ in capital investment, or is either one sufficient?
Both – the language should read “and.” An amended RFP was released September 3, 2026.
21. Can project costs our company paid for before signing a grant agreement with MassCEC be reimbursed?
No. All reimbursable costs must be incurred after execution of a Grant Agreement, and only approved expenses within the contracted scope of work are reimbursed. Funds are disbursed on a cost-reimbursement basis in 45-day cycles. See Section C (pp. 5, 7) in the RFP.
22. Is a project eligible if it consists only of purchasing and permanently installing equipment in an existing or newly leased facility, with no building construction?
Yes. See Eligible Expenses in Section C (p. 7) in the RFP.
23. Are the raw materials and subcomponents that go into the product we manufacture eligible for reimbursement?
Only if they become part of the facility itself. Permanent building and installation materials are eligible (structural steel, conduit, concrete, wiring, permanent piping, etc.). Inventory inputs, resupplies, consumables, and reagents are not. See Section C (pp. 7 – 8 ) in the RFP.
24. Will an initial, one-time commissioning charge for biological enzymes/catalysts required to bring a system into their intended operating stage be eligible capital expense?
Yes, since the biological enzymes/catalysts are directly attributable to placing the asset into service, therefore it can be capitalized. However, after the asset is online inventory inputs, resupplies, consumables, and reagents are not eligible for reimbursement. See Section C (pp. 7 – 8 ) in the RFP.
25. What kinds of software and digital infrastructure costs qualify as eligible capital expenses?
Digital infrastructure and capitalized software are eligible. Software not tied to asset creation – CRMs, employee portals, SaaS tools – is not. See Section C (pp. 7 – 8) in the RFP.
26. Attachment 2 allows capitalized software where only perpetual or long-term licenses qualify, and excludes SaaS subscriptions. Where is the boundary between long-term licenses and subscriptions that are excluded? Specifically, does a multi-year term license (e.g., 3- or 5-year, prepaid capitalized under GAAP) qualify as long-term, or is any license with a specific end date eligible?
Generally, it must be clear that the software must match the useful life of the assets it’s enabling. From your example, a 3 – 5 year prepaid license would be eligible. Please make sure that in your Project Budget it’s clear what asset the software enables.
27. Can the grant fund equipment that our company buys but that will be housed and operated at a contract manufacturer’s facility rather than our own?
Yes, provided you retain ownership of the equipment and can demonstrate a long-term relationship with the manufacturer. The equipment must meet all RFP eligibility requirements, and the project must be located in Massachusetts. See Section C (p. 7) and Section E (p. 10) in the RFP.
28. Are climatetech service providers eligible – for example, an energy services company that performs assessments and subcontracts out installations?
No. The program funds companies producing climate-critical technologies, either first-of-a-kind commercial operations or established manufacturers expanding in or relocating to Massachusetts. Applicants must be developing or deploying a technology that meets the Climatetech definition. See Section C (pp. 4, 6 – 7) in the RFP.
29. The Sample Agreement includes a ten-year period during which moving a funded asset out of Massachusetts triggers a Change Event. How does that work if our lease is shorter than ten years?
It depends. If the equipment will remain in Massachusetts after the lease ends, no Change Event occurs. If permanent infrastructure is part of the project, a renewal commitment or landlord acknowledgement is expected with the application. Relocating assets outside Massachusetts within ten years is a Change Event.
30. At what point is a pilot manufacturing line considered commercial enough to be competitive, rather than still being treated as R&D?
When you can show traction – signed customer agreements, projected revenue, and how the line supports long-term revenues.
31. What kinds of community or institutional partnerships satisfy the “Public Good” scoring criteria?
Any partnership that delivers value to Massachusetts beyond your own business outcomes – workforce training partnerships, hiring from Gateway Cities or rural communities, and partnerships with schools or training institutions. Every applicant must describe the project’s public benefit. See Section E (pp. 11 – 12) in the RFP.
32. Does a project earn additional scoring credit for bringing an overseas supply chain back to the United States?
No, not on its own. Scoring centers on job growth and Massachusetts investments. Local sourcing and hiring do strengthen your Public Good score. See Section E (pp. 11 – 12).
33. Is it a problem if our jobs and manufacturing are in Massachusetts but the technology we produce will be sold and deployed nationally?
No. Customers outside Massachusetts are expected. Scoring looks at job growth and investment in the state, not where the technology is deployed.
34. Which financial statements must be submitted with the application, and from which year?
Your most recent fiscal or calendar year statements, 2025 or later – balance sheet, income statement, cash flow statement, and statement of shareholders’ equity. See Section D (p. 10) in the RFP.
35. How itemized do vendor quotes and construction estimates need to be, both at application and later at reimbursement?
At application, itemized quotes for anything over $100,000 – a general contractor top-line number isn’t enough. After award, reimbursement requests for equipment need itemization above $30,000.
36. Cell E18 of the Project Budget Template, which calculates the cost-share percentage, returns a #REF! error. Is that intentional?
No, and thank you for flagging it. The formula should be =IFERROR((D18/D15), 0). An amended Project Budget template (Attachment 2) was released September 3, 2026.
37. Since MassCEC is subject to the Massachusetts Public Records Law, how should a private company handle proprietary or sensitive information in its application?
Don’t submit anything you wouldn’t want made public. Exemptions to the law exist and our counsel interprets them, so flag specific concerns at submission and we’ll review appropriately if a public records request comes in. See Section H in the RFP.
38. What is the purpose of the generative AI disclosure in the application’s Affirmations section, and does it affect scoring?
It’s informational only. You won’t be penalized. We ask so we can follow up on accuracy and understand how you’ll use AI during the project. See Section D in the RFP.
39. Does MassCEC offer support with product certification or finding local component suppliers as part of this program?
No, not through this program. Email our business development team at bizdev@masscec.com and we’ll try to connect you.
40. Can a Business Builds: Climatetech grant be combined with an award from the Climatetech Tax Incentive Program (CTIP), including if we’ve received CTIP funding previously?
Yes, but not for the same equipment. Business Builds reimburses future purchases; CTIP looks back at a tax year and opens each December. Since Business Builds is forward-looking, prior CTIP assets generally won’t create a conflict, but you may not claim a CTIP credit for purchases reimbursed under Business Builds. Contact bizdev@masscec.com for more details.
41. We are registered as an LLC in a different state and can’t provide the MA DOR CoGS, MA DUA Cert. of Compliance, and MA Sec. CoGS. Would we instead be able to provide the CoGS from our registered state (e.g, Delaware)?
The Massachusetts certificates can't be substituted for out-of-state equivalents, since each one certifies standing with a specific Massachusetts agency. However, a foreign LLC can obtain them (all certificates must be dated within 90 days of your submission):
- DOR Certificate of Good Standing — this confirms your Massachusetts tax filings are current, not where you're incorporated. You can request it free through MassTaxConnect, including if you're not yet registered there.
- Secretary of the Commonwealth — you'll need to register as a foreign LLC with the Corporations Division first, which then lets you request the certificate.
- DUA Certificate of Compliance — this one depends on having a Massachusetts unemployment insurance account. If you have MA-based employees, you should have an account.
