As-of-right Tax Abatement

Incentive Overview

The As-of right Tax Abatement focuses on activating real estate development and job creation in traditionally underserved areas by providing a standardized tax abatement and offering a simplified and streamlined process.  

Temporary tax abatements of net new real property or business personal property taxes are available for job creation projects and real estate development projects that advance the City’s economic development goals. Eligible applicants can choose either a 10-year, 90% real property abatement or a 5-year, 90% business personal property abatement.  

All tax abatements begin on January 1 of the calendar year that immediately follows the execution of the agreement. As such, the As-of-right Tax Abatement is most appropriate for shovel-ready projects or other near-term investments. Projects with a longer investment timeframe may apply for negotiated incentives.

Requirements

As-of-right Tax Abatement projects must meet the following requirements:

• Located in the Target Area (and not in a TIF district) 
• Total project budget of $25 million or less
• Capital Expenditures of at least $2 million or creation of 10 jobs or retention of 25 jobs
• Jobs must pay living wage (MIT Living Wage Calculator)
• Construction projects must comply with City’s MWBE participation goal of 32%
• No residential displacement or demolition without a plan to rehouse or relocate the displaced

Read more about the  As-of-right Tax Abatement incentive. 

Apply

If you are ready to apply for the as-of-right tax abatement, please use this application.

If you are unsure and need help determining the best incentive program for your project, please complete our quick and easy Incentives Inquiry Tool.