Climatetech Tax Incentives

The Challenge:
Boost Climatetech Development and Career Opportunity

Massachusetts is currently leading the nation in climatetech innovation. To accelerate industry progress, companies need financial support for the research and development of their technologies. MassCEC has created the Climatetech Tax Incentives Program (CTIP) to give credit to companies contributing to the climatetech sector at any stage, from innovation to deployment. By incentivizing climatetech participation and job creation, MassCEC is promoting advancement that will strengthen the economy and create a cleaner environment.

About Climatetech Tax Incentives

MassCEC, in consultation with the Massachusetts Department of Revenue, may authorize a total of up to $30,000,000 of tax incentives per calendar year. Respective tax incentives (as described below) can be provided to certified climatetech companies that are engaged in climatetech research, development, innovation, manufacturing and deployment. The incentives will be given over a one-to-five year period.

MassCEC-certified climatetech companies may be eligible for the following tax incentives:

1. Job Creation - A one-year partially refundable credit against tax liability for the creation of not less than five net new permanent full-time employees. 
2. Capital Investment / Owning - A five-year refundable credit for an owner of a climatetech facility against tax liability for up to 50% of its qualified total capital investment of not less than $5,000,000 in the facility and the facility will employ not less than 50 net new full-time employees by the fifth year of the compliance period. 
3. Capital Investment / Leasing - A five-year refundable credit for a tenant of a climatetech facility against tax liability, provided that: (a) the owner of the facility has made a qualified total capital investment in the facility that equals not less than $5,000,000; (b) the tenant leases and occupies an area of the facility that represents not less than 25% of the total leasable square footage of the facility; and (c) the tenant will employ not less than 13 full-time employees at the facility by the fifth year of the compliance period.

CTIP is one of MassCEC’s efforts/programs launched under the Mass Leads Act (2024) and supports the goals outlined in the Massachusetts Climatetech Economic Development Strategy and Implementation Plan (2025).