Gov. Approves Marlborough Economic Development Project

The Economic Assistance Coordinating Council (EACC) approved seven projects for participation in the Economic Development Incentive Program (EDIP), which are expected to create 433 new jobs and retain 460 existing jobs, in addition to leveraging over $61 million in private investment and supporting construction projects across the Commonwealth.

Among the approved projects are five manufacturing companies and three projects located in Gateway Cities. The EDIP program will facilitate the growth of these businesses, which will contribute to job creation and private investment in the state. The EACC meets on a quarterly basis to review applications.

“Supporting companies that are choosing to grow in Massachusetts is an important part and one of the Administration’s key economic development objectives to create economic opportunity in every region of the Commonwealth,” said Massachusetts Office of Business Development Executive Director Michael Hunter. “These investments will help these companies expand and continue to enhance the Massachusetts economy by making our communities stronger in the long term.”

The EDIP is the Commonwealth’s investment tax credit program for businesses. In 2009, Governor Deval Patrick and Housing and Economic Development Secretary Greg Bialecki, along with the Legislature, reformed the program and, as a result, the EDIP has become one of the most effective programs helping business grow in Massachusetts. EDIP tax credits and other incentives are available to companies that make qualifying investments in new facilities and create new jobs. Those benefits can be recaptured if a company does not make the investments or create the jobs it projected.

Since these changes, 204 projects have received approval, leading to the potential creation of 14,416 new jobs, the retention of 40,911 existing jobs and leveraging of over $5.5 billion in private investment. The EACC has assisted 111 manufacturers through the EDIP and has supported 94 projects in Gateway Cities.

Among that projects that the EACC approved:

IPG Photonics Corporation (Marlborough) – Headquartered in Oxford, Massachusetts, IPG Photonics Corporation is one of the world’s leading developers and manufactures of high-performance fiber lasers and amplifiers. Since its founding in 1990, IPG has pioneered the development and commercialization of optic fiber-based lasers for use in a wide range of markets. The company currently owns and fully occupies their 420,000 square foot headquarters facility in Oxford and leases temporary space in Marlborough. The Expansion Project includes the purchase and renovation of two vacant buildings totaling approximately 111,000 square feet. A private investment of $13.5 million is expected to transform the building into a state-of-the-art advanced manufacturing and research and development center, with dedicated space for clean rooms, labs and manufacturing. The project will create 100 net-new full-time jobs in the Commonwealth, transfer 24 existing employees to the site and support the company’s current Massachusetts workforce of 911 full-time employees. The City of Marlborough is supporting the project with a 5-Year Tax Increment Financing Agreement valued at $59,262. The EACC has approved $750,000 in EDIP Investment Tax Credits. IPG Photonics Corporation will also benefit from the Commonwealth’s 10 percent Abandoned Building Deduction.

Article submitted by the Patrick Administration