Proposal would use tax incentives to revitalize vacant industrial sites

A bill recently introduced by Rep. Robert Freeman (D-Northampton) would create three types of state tax incentives to promote redevelopment and reuse of vacant factory or mill buildings.

The first allows for a business tax credit equal to the salaries and wages paid to full-time employees, up to a maximum of $5,000 per employee.

The second provides a 25 percent tax credit for the rehabilitation and reconstruction costs incurred by the owner.

The final type provides an interest income tax credit of 10 percent on the interest from loans for the expenditures within the building with a limit of $10,000 per taxable year. Loans for substantial rehabilitation would be eligible for a 100 percent tax credit on interest, up to $20,000 per taxable year.

“Using a building for the purpose other than which it was originally intended, is a way to reuse buildings that have stood in our communities for decades,” Freeman said. “Some of the buildings have withstood the test of time for more than 100 years. They might be vacant, but they are still standing. My bill would provide an incentive to breathe new life into these buildings – many of which are part of a community heritage and identity.”