Would employees hired during 2025 be counted towards the job incentive even if the application is submitted in 2026?
No. Read Section II for more details: "Climatetech Jobs Credit" - Job Creation - A one-year partially refundable credit against tax liability for the creation of not less than 5 (five) net new Permanent Full Time Employees (as defined below) by December 31, 2026". Please note that the period of eligibility for new hires started January 1st, 2026.
We are working on a tax exempt bond with MassDevelopment but we want to use those proceeds to lease with option to buy to create leverage to buy as much equipment as possible. Can we apply as "owner"?
Unless you currently own the building, no. Please read Section VI for more details.
Is there an opportunity for non-profits to participate? Private universities for example.
No, the Applicant must be a business corporation, partnership, firm, unincorporated association or other entity engaged in research, development, innovation, manufacturing, deployment or commercialization of Climatetech technologies in the Commonwealth and any affiliate thereof, which is, or the members of which are, subject to taxation under chapter 62, 63, 64H or 64I of the Massachusetts General Laws.
Refundability - The statute appears to provide for 100% refundability of the Capital Investment Credit. Unlike the Jobs Credit - explicitly limited to 90% - no such limitation appears in statute for the Capital Investment Credit. However, the current draft DOR forms (Schedule CMS, 2025) incorrectly state the Capital Investment Credit is limited to 90% refundability.
This was a drafting error that we are working with DOR to amend.
Please clarify that the Owner Credit applies to climatetech facility owners, and that the 50-job requirement pertains to all jobs located at the climatetech facility, not necessarily at the owner's broader operations.
The Owner Credit does apply to climatetech facility owners. The 50-job requirement pertains to the climatetech facility, not the owner's broader operations.
Please clarify how the Clean Energy Center (CEC) intends to administer and enforce compliance for the capital investment credits.
See Section VIII of the RFP for more info: If approved and awarded a tax incentive, each Certified Climatetech Company must file an annual report with MassCEC certifying whether it has met the specific targets established in its application. MassCEC also reserves the right to request a mid-year report on progress made towards meeting the specific targets. If the Certified Climatetech Company has not met the specific targets upon filing the annual report, it must provide supporting information and explanation as to why it has not and submit a plan detailing its progress towards those targets and a strategy to meet them. If the Applicant fails to meet the specified targets, the Applicant's status as a Certified Climatetech Company may be subject to revocation. Applicants may be subject to additional due diligence at the discretion of MassCEC. All Applicants agree to cooperate with MassCEC in any additional due diligence.
Omission of Additional Climatetech Incentives Authorized by Statute - The enabling climatetech statute includes two additional incentives not addressed in the current draft program materials. Please clarify why these incentives are omitted from current solicitation/request (RFP).
Although we are authorized to award the R&D and SUT incentives as per legislation, we will not be including them in this year of the program.
If an applicant has 2 locations -- how would you handle meeting the statutory requirements for the capital credit. Could they combine the minimums to reach the $5M / job creation requirements, or would they need to separately meet the requirements at each facility and need to submit two applications.
Each facility would have to meet their own requirements separately.
Application Form "Attachment B" indicates "Applicants are encouraged to stay within 11 pages total.". The Application Form is already 8 pages, does the 11 page limit exclude the 8 pages of questions? Does it also exclude the certificates of good standings and capital budgets?
No, this limit includes questions. It excludes the certificates of good standing the capital budget documents.
The Capital Investment/Owning and Capital Investment/Leasing both refer to the timing of when capital expenditures are incurred, and we would appreciate additional guidance and explanation of when capital expenditures are considered to be incurred by MassCEC for CTIP purposes. We assume the costs are generally considered incurred as of the date the applicable property or equipment is "placed in service" for federal income tax purposes, or perhaps for U.S. generally accepted accounting principles (GAAP) purposes. In the case of buildings, we assume the date costs are considered incurred is the later of the date the building is placed in service, but not sooner than the date the building receives its certificate of occupancy (CO)
We are adhering to GAAP guidelines for this program. The building must have received a certificate of occupancy and have been placed in service for the expenditure to have been incurred on a certain date.
Can you be more specific on the timing that the money would land? The RFP says "after July 1, 2026" for tax credit claims. In a world in which there is excess credit after exceeding our tax liability, approximately when would a refund credit be issued?
You would need to file your tax return along with the tax credit claimed. If you have a refund on your tax return, MA Department of Revenue's system will issue the refund. Refund checks take about a week to be issued out of the system. However, human intervention is part of the process and timing varies.
It's our understanding that, if we qualify, we could theoretically apply for a credit annually through 2030. For example, let's imagine that in 2026, we apply and qualify for the Leasing Credit because our property owner invested well over $5M in calendar years 2024/2025. In the case that the property owner invested an additional $5M into the site across 2025/2026 (without double counting any investments), is it possible for us to apply for the Leasing Credit again in 2027 or 2028? If yes, what - if anything - would the second (theoretical) awarded credit do to the remaining years payout of the first (theoretical) credit?
The second credit would not affect the first. We would continue to acknowledge the $7.5M limit each year to ensure that the total budget for the program across all recipients is $30M. For example, a $5M credit would subtract $1M from our total availability every year, and a second would bring that applicant to $2M allocated each year, which is permitted.
Lastly, in a scenario in which a ClimateTech company is approved for a Capital Investment (Leasing) credit in 2027, the 5 year payout would extend past the life of this program (year 5 would be 2031). Should the company expect that the funding is secured for all 5 years (through 2031), or should we expect a halt (pending a funding extension) in 2030?
Although we anticipate all awardees in compliance to receive their full award amounts, we cannot yet determine what funding will look like by 2030.
We've had a few questions/concerns from clients on how the tenant proves out the $5M of owner capex. What is your expectation on this? Some owners are being cooperative and willing to provide a high-level summary of capex. Is that sufficient? The tenant will need to rely fully on the owner's information and won't be able to directly attest to those amounts.
At the application stage -- Applicants interested in pursuing the Capital Investment / Leasing credit are required to complete the entire Application Form, which includes Question #18. Question #18 requires that the applicant provide specific details on the capital project. While MassCEC does not require receipts as part of this application process, applicants should be confident in the information they are given and thereby providing as part of this process.
Additionally, all applicants are required to read, sign, and submit Attachment A "Authorized Applicant's Signature and Acceptance Form", which includes attestation that information provided in the Application Form are true and correct.
If awarded a tax incentive, there are additional annual reporting requirements as well. In the situation described above, MassCEC requests that documentation from the owner be provided. See Section VIII for further details.
For overall 5-year compliance -- will you be putting out a policy on that? Right now, there are several factors mentioned, but they do not have any accompanying metrics on what it means to "substantially achieve the new stated revenue, job growth and capital investment projections."
At the application stage -- Applicants are required to complete the entire Application Form, which includes questions on forecasted revenue (i.e., Questions #19 and 20). While there are no quantifiable minimums provided by the statute or this RFP on what it means to "substantially achieve" these projections, MassCEC will require all awarded Climatetech Companies to annually report on their stated revenue, job growth, and capital investment projects, as those Applicants stated in their Application. There will be additional reporting guidelines to come.
Many of the companies in this industry will not generate state income tax during the term since they are still ramping up or have a majority of out of state sales. This will indirectly generate revenue for the state from employee withholdings and property tax. How will you track the ability to achieve new state revenue for the purposes of compliance?
At the application stage -- Applicants are required to complete the entire Application Form, which includes questions on forecasted revenue (i.e., Questions #19 and 20). While there are no quantifiable minimums provided by the statute or this RFP, MassCEC will require all awarded Climatetech Companies to annually report on their stated revenue, job growth, and capital investment projects, as those Applicants stated in their Application.
Additionally, Applicants are evaluated based on the criteria outlined in Section VII, some of said criteria includes, "Presentation of a clear strategy and credibility of the business plans and underlying assumptions for achieving revenue and employment goals" (p. 13). MassCEC encourages Applicants to ensure they meet all criteria stated in the RFP prior to applying to the program.
What if the facility has two owners, each owning 50%? In a scenario where the tenant is renting more than 25% of the part of the facility one of the owners, but not 25% of the entire facility, who would be eligible?
In the case of two owners, a tenant would only need to lease 25% of the leasable square footage of their owner's facility, assuming that the facility is a "climatetech facility". M.G.L. c. 62(6)(gg) defines a "climatetech facility" as "any building, complex of buildings or structural components of buildings, including access infrastructure and machinery and equipment used in the research, manufacturing, assembly, development, provision or administration of goods or services in the climatetech sector."
For the Job Creation Tax Incentive, is there a cap to # of jobs created that qualify for the $20K per job? And the credit is for the first year and not the subsequent Year 2-5?
There is no cap as long as you're below a $7.5M total award. The credit is to be claimed in year 1, with years 2-5 being for compliance.
What if the facility is a large building 300,000 sqft but we are occupying only 20,000 sqft? we don't meet 25% requirement?
Per Section II of the RFP, the requirement is that "the tenant occupies a leased area of the climatetech facility that represents not less than 25% (twenty-five percent) of the total leasable square footage of the facility." The building may be a total of 300,000 sqft, but may have a smaller leased amount of space. Please check with the building owner to find out the building's leased area.
Are the 50 employees required to be direct employees of the "owner" or are the employees at the facility the employees of the climatetech companies who are the tenants located at the facility?
The employees must be employees of the facility in which the tenant is claiming the incentive for.
For the tenant credit - what is the period of the lease payments for this round - 2025 lease payments? Thank you!
It would be for 2025, the taxable year. See Section VI of the RFP for more info.
For the tenant credit, would CAPEX reimbursements from owner to tenant qualify towards the $5M minimum?
Yes, these expenses would count towards the minimum.
Is the $7.5M out of $30M max a yearly or total figure?
$7.5M is the total maximum for each company.
On evaluation criteria, is there a grading rubric that can be made public to guide applications on metrics / additional dimensions to highlight within each of the categories shown here?
Use the RFP for this guidance. If we make any updates to the evaluation criteria or scoring mechanism, we will update the RFP before applications are due.
Can companies 'double dip', if they qualify for more than one of these credits? If not, what guidance, if any, do you have for applicants who are thinking through sequencing of these credits? Specifically, our company should qualify for both the Renters and Job Creation credits. If we decide to start with the Renters credit and thats a 5 year program, in year 6, do you expect the job creation credit to still be something we could still apply for?
Please consult a tax professional for advice on what makes sense for you. However, companies can apply for a different tax credit this year and again next year. You don't have to wait until the end of the 5 year compliance period to apply for another tax credit.
for renter's credit, is it $5M total for the whole building, including space from other tenants? the startup just has to occupy at least 25% of the space?
Yes, as Section VI of the RFP states, "Capital Investment / Leasing - A five-year refundable credit for a tenant of a climatetech facility against tax liability, provided that the owner of the climatetech facility has made a qualified total capital investment in the facility that equals not less than $5,000,000 (five million dollars); the tenant occupies a leased area of the climatetech facility that represents not less than 25% (twenty-five percent) of the total leasable square footage of the facility; and the tenant will employ not less than 13 (thirteen) full-time employees at the climatetech facility by the fifth year of its certification period. The amount of tax credits awarded to a tenant for a taxable year shall not exceed the tenant's total lease payments for occupancy of the climatetech facility for the taxable year. The total amount of credit awarded will be distributed in equal parts over 5 (five) taxable years that correspond with its certification period (i.e., 2025 -- 2029)."
How are you protecting Intellectual Property that is included in applications? (FOIA question)
See more in Section IX of the RFP: As a public entity, MassCEC is subject to Massachusetts' Public Records Law, codified at M.G.L. c. 66 (the "Public Records Law"). The Applicant acknowledges and agrees that any documentary material, data, or other information submitted to MassCEC are presumed to be public records. The Applicant acknowledges and agrees that MassCEC, in its sole discretion, shall determine whether any particular document, material, data or other information is exempt from or subject to public disclosure.
An exemption to the Public Records Law may apply to certain records, such as materials that fall under certain statutory or common law exemptions, including the limited exemption set forth in M.G.L. c. 23J, Section 2(k) regarding certain types of confidential information submitted to MassCEC by an applicant for any form of assistance.
Climatetech certification -- can climatetech companies still get the climatetech certification even if they do not get awarded CTIP $?
No. Certification takes place in conjunction with awarding.
Can you provide some examples of how the tax credit(s) work?
See webinar for example calculations.
Will there be office hours after the Q&A period has ended?
No. We don't permit this because we want to ensure all Applicants have fair access to the same information.
