Economic development bond authorizations set to enhance state as national leader
(BOSTON—7/11/2024) Today the Massachusetts Senate unanimously passed a comprehensive economic development bill that makes bold investments in life sciences, climate tech, and small businesses, building on Massachusetts’ national leadership and creating an environment where businesses and workers thrive.
The $2.86 billion in bonds authorized in An Act Relative to strengthening Massachusetts’ economic leadership will stimulate new and proven industries, support workforce development and talent retention, and modernize economic growth strategies.
The support in S.2586 extends to small businesses, communities, and cultural development, ensuring that main street businesses across the Commonwealth benefit from the economic boost.
“Life sciences and climate technology are synonymous with Massachusetts because of the past decade of strong investment,” said Senate President Karen E. Spilka (D-Ashland). “The Senate’s action today ensures that we build on that leadership in the coming decade, amplifying the diverse and thriving economic ecosystem that enables people to stay in our state to build careers and families. I am grateful for Chair Finegold’s leadership on this bill, to Chair Rodrigues, and to each of my Senate colleagues for their input and action to strengthen our economy.”
“I’m excited the Senate has created long-term investments in key sectors of our state’s economy by passing this economic development bond bill,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “With ambitious initiatives in life sciences, robotics, artificial intelligence, and other cutting-edge disciplines, we lay a strong foundation for the new and global economy for generations to come. While we look to the future, the bill also reinforces the traditional economic drivers of the Commonwealth, notably small business, education, and advanced manufacturing. This comprehensive legislation also reaffirms the Senate’s commitment to regional equity.”
“Massachusetts is home to great talent, industry, and education, but we must act now to remain competitive in a changing global and national economy,” said Senator Barry R. Finegold (D-Andover), Senate Chair of the Joint Committee on Economic Development and Emerging Technologies. “This economic development bill bolsters our state’s competitiveness by strengthening sectors we already excel in and creating pathways to secure the lead in emerging fields. I want to thank my colleagues for their helpful input, especially Senate President Spilka, Senate Ways and Means Chair Rodrigues, my House counterpart, Representative Parisella, as well as the Healey-Driscoll administration for leading the charge on behalf of Team Massachusetts.”
The combination of investments, tax credits, and policy changes will position Massachusetts industries as global leaders at a moment when breakthroughs in science and technology are more important than ever.
Provisions of the legislation include:
Maintaining Massachusetts’ Life Sciences Leadership
While 18 of the top 20 biopharma companies now have ties to Massachusetts, the national ecosystem remains competitive.
The Senate’s economic development bill authorizes $225 million over five years for the Life Sciences Breakthrough Fund to reauthorize the Life Sciences Initiative, totaling $45 million annually. Known as “Life Sciences 3.0”, the reauthorization adds health equity, biosecurity, digital health, and artificial intelligence (AI) to the mission of the Life Sciences Center.
It redefines “life sciences” to include preventative medicine, biosecurity, life sciences AI, and medical technology. It also allows for awards and grants to public higher education institutions or public private partnerships.
Keeping Climate Tech Companies in Massachusetts
Massachusetts is first in the nation for per-capita climate tech startups—despite being outpaced in investment by New York and California—with 49 businesses per one million residents.
To incentivize these startups to stay in Massachusetts and continue to build their companies, the legislation provides $200 million for the Clean Energy Investment Fund to facilitate research and development, commercialization, and deployment of climate technologies. It adds a further $200 million for the Massachusetts Offshore Wind Industry Investment Trust Fund to support the growth of the offshore wind industry.
Additional incentives include a climate tech tax credit, a climate tech jobs credit, and a climate tech research credit.
Regional Equity
The legislation reflects the different needs of different communities and ensures none of the Commonwealth’s 351 cities and towns are left behind.
This will partly be accomplished through statewide targeted infrastructure improvements, with the bill authorizing $400 million for MassWorks public infrastructure projects that spur economic development and help support job creation, $100 million for the Rural Development Fund to provide financial assistance for infrastructure and community planning efforts in rural communities, $100 million for local economic development grants for economic development in cities and towns, $90 million to support the redevelopment of underutilized, blighted, or abandoned buildings, and $10 million for the Broadband Incentive Fund for the capital maintenance of the MassBroadband 123 middle mile network.
In addition to infrastructure, the legislation recognizes the importance of local cultural and economic sites, providing $150 million for capital grants for public libraries, $50 million for the Cultural Facilities Fund, $40 million for Destination Development grants to support capital improvements of tourism assets, $15 million for a capital grant program to support the Commonwealth’s agriculture, commercial fishing, and cranberry growing industries, and $8 million for historical preservation grants through the Massachusetts Historical Commission.
Accelerating AI & Advanced Manufacturing Development
To position Massachusetts as a leader of the future economy, the bill includes provisions to further develop the rapidly growing AI industry as well as high-tech advanced manufacturing jobs.
It contains $115 million for the Massachusetts Tech Hub to establish key industry consortia across the Commonwealth, $100 million for the Applied AI Hub program to facilitate the application of AI, $99 million for flexible grants to support advanced manufacturing initiatives, and $25 million for capital grants to advance research, commercialization, and training in robotics.
Retaining Talented College Graduates
Outmigration is notably prevalent among students who graduate from Massachusetts colleges. To keep them and their talent in the state, the legislation includes $85 million for the Massachusetts Education Financing Authority (MEFA) to improve access to affordable higher education opportunities.
Additional talent-retention provisions promote internships for students and recent graduates through the employer internship tax credit and allow foreign-licensed physicians to apply for a limited license to practice medicine in the Commonwealth with a pathway to a full unrestricted license. The program would enable their talents to be used to fill the state’s physician shortage.
Supporting Small Businesses
With nearly 50 per cent of Massachusetts workers employed by companies with less than 500 employees, small businesses are a key part of the Commonwealth’s economy. The Senate’s legislation recognizes this, providing $25 million through MassVentures for small business technology grants to help early-stage companies commercialize new technologies, $35 million for grants to Community Development Financial Institutions (CDFIs) to help disadvantaged and underserved businesses, and $10 million for Biz-M-Power matching grants to small businesses with capital needs.
To assist small businesses in rural areas and areas impacted by pollution, the bill authorizes $3 million for grants to improve the readiness of sites for economic development projects and $30 million for the Brownfields Redevelopment Fund to support the remediation of land impacted by environmental contamination.
Everett Zoning Changes
The legislation would remove a parcel of land in Everett from its status as a designated port area, enabling a process to move forward that could create a public sports and entertainment venue. The change is anticipated to have significant positive environmental and economic impacts in the community surrounding the area.
During debate, the Senate adopted several amendments, notably:
· An amendment to allow local communities to opt-in and allow bars and restaurants in the community to responsibly offer happy-hour drink discounts.
· An amendment to admit Massachusetts in the national nurse licensure compact, helping to address the critical workforce challenge facing the health care sector.
· An amendment enhancing local public health infrastructure and service delivery.
· An amendment allowing local breweries and distilleries to sell their products alongside local wineries at farmers markets.
· An amendment increasing opportunities for a more diverse public sector teaching force.
· An amendment to provide consumers more rights to seek repair of their cell phones without having to seek service from the original manufacturer.
A previous version of this bill having passed the House of Representatives, the two branches will now reconcile the differences between the bills before sending it to the Governor’s desk.
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