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Last updated: 11/26/18

Tax agreements

The City has tax incentive programs to advance its economic development and housing goals. We have a description of these programs below. We also list the agreements that we executed under each program at the bottom of this page.

Please keep in mind:

The tax agreements we provided below are effective as of January 1, 2017.

Still have questions? Contact:

1 City Hall Square, Room 301
Boston, MA 02201-2011

121A agreements

Chapter 121A of the Massachusetts General Laws allows cities and towns to stop placing real property taxes on properties found to be blighted. The goal is to encourage redevelopment of these properties by Chapter 121A Corporations.

121A project owners make an alternative tax payment each year that is made up of:

  1. an excise PILOT (Payment in Lieu of Taxes) that is collected by the Commonwealth and given to the City, and
  2. a payment resulting from a 6A agreement. This agreement is between 121A project owners and the City. It’s related to City services available to the development.

Most 121A projects are for low- and moderate-income housing. You can find 6A agreements for each 121A project at the bottom of this page.

121B agreements

Chapter 121B of the Massachusetts General Laws allows cities and towns to take public actions to address substandard or blighted open areas.

The decision to take a public action is up to the community and is done through urban renewal agencies. Instead of property taxes, we may require 121B project owners to enter into an agreement to make annual payments to the City. You can see individual 121B agreements at the bottom of this page.

Developments in 121B agreements include:
  • residential
  • commercial, industry, or business
  • government
  • recreation
  • education
  • hospitals, or
  • other uses.

TIF and STA agreements

Tax Increment Financing ("TIF") and Special Tax Assessment ("STA") are property tax incentives. They’re available to businesses in Massachusetts.

In return for substantial job creation, TIF agreements:

  • provide businesses with tax relief on the incremental growth in their property's value for up to 20 years, and
  • give businesses tax relief by providing a phased-in assessment of the total value of the property from 5 to 20 years.

TIF and STA plans must be approved by a City Council vote. You can see individual TIF and STA agreements at the bottom of this page.

Tax Agreements by Program