Economic Development Bill Summary
Thank you for your interest in H.5100 - An Act relative to strengthening Massachusetts’ economic leadership. I am writing today with an update regarding the Legislature’s passage of the Economic Development Bill. As you may remember, this bill was one of the items that the House and the Senate did not reach an agreement on prior to the end of the Formal Session on July 31st, 2024. As I mentioned in my blog post on August 2nd, I was hopeful that the Legislature would continue to advance legislation this fall during an informal or special session - which they have with the passage of this Economic Development Bill, the Sweeping Climate Bill, the Federal Funding Bill, the Maternal Health Bill, and the Long-Term Care Bill. I was proud to vote in favor of these critical investments and legislative victories and am thankful to the Speaker and Senate President for prioritizing their passage. The Economic Development Bill is now pending before the Governor for her signature. She has 10 days (from the bill’s passage) to accept or reject the bill or return any amendments to the Legislature. If the bill is not signed within 10 days, it becomes law automatically.
This bill will work to ensure the Commonwealth’s economic competitiveness by making crucial investments in new and established industries, workforce development, support for small business, rural infrastructure, education and more. The bill will authorize nearly $4 billion to be infused across major sectors of the Massachusetts economy, growing the cutting edge disciplines that our state has become the epicenter for, while also ensuring healthy job growth Main Street business across the Commonwealth.
This legislation contains a wide range of provisions which focus on enabling the development of clean energy infrastructure in the Commonwealth. Some main components of this legislation include:
Bond Authorizations
The legislation includes a total of $3.96 billion in capital authorizations for leading Massachusetts industries including life sciences and climatetech.
Climatetech investments. The bill provides $400 million in capital resources to the MassCEC (Massachusetts Clean Energy Center) to utilize over the next ten years, with $200 million authorized to support innovation and deployment of climatetech technologies and $200 million to support the offshore wind industry.
It also establishes a new tax credit to invest in climatetech companies. A new program housed at MassCEC will develop and expand employment opportunities in climatetech and promote climatetech-related economic development by supporting and stimulating research, development, innovation, manufacturing, deployment and commercialization in the climatetech sector. The credit will be subject to a $30 million annual cap.
Life sciences. This legislation authorizes $500 million over ten years for the Life Sciences Breakthrough Fund to reauthorize the Commonwealth’s life sciences initiative.
Known as Life Sciences 3.0, the reauthorization adds health equity, biosecurity, digital health, and artificial intelligence to the mission of the Life Sciences Center. The bill increases the annual tax credit authorization for the life sciences industry from $30 million to $40 million.
Additional authorizations include:
• $400 million for the MassWorks Infrastructure Program to support public infrastructure projects and create jobs;
• $150 million for library construction projects;
• $103 million for artificial intelligence in systems across the state;
• $100 million for infrastructure improvements in rural communities;
• $21 million for resilience in agriculture and fishing; and
• $40 million for food science innovations, including $10 million to support the state’s nascent alternative protein industry.
Local Bond Authorizations.There were bond authorizations for local organizations, including Museum of African American History ($1.5 million), the Huntington Theatre ($2.5 million), Museum of Science ($2.5 million), and Revolutionary Spaces ($2.5 million). The MAAH authorization is, in part, for replacing its HVAC system.
Policy Changes
Numerous policy changes in the legislation targeted at growing the Massachusetts economy include:
Support for small businesses. The bill restructures two quasi-state agencies that are designed to be the gateway for access to state resources, the Massachusetts Growth Capital Corporation (MGCC) and Massachusetts Development Finance Agency (MassDevelopment).
The legislation also authorizes a five-year pilot program for the Commonwealth to assist small businesses in acquiring surety bonds. Large capital projects, whether public or private, often require retention of a surety bond by the contractor as financial security. Historically, economically and socially disadvantaged businesses often cannot acquire these bonds because of a lack of credit history or collateral. This program creates a self-sustaining state assistance program to open doors for more of these businesses.
Educator diversity. It allows the Department of Elementary and Secondary Education (DESE) to develop an alternative certification process for teachers who may face challenges passing the educator certification exam but can otherwise demonstrate their competence as teachers. The change will help Massachusetts diversify the K-12 educator workforce.
Live theater tax credit. It launches a new tax credit of up to $7 million annually to support local live theater productions. The credit will help Massachusetts artists working towards Broadway or off-Broadway launch a national tour.
Craft beer at farmers markets. The legislation updates the law to allow for locally produced craft beer to be sold at farmers markets, like wine and cider currently.
Ticketing transparency. It requires ticket sellers to clearly disclose the actual ticket price when listing tickets online and bans automated ticket purchasing software, otherwise known as bots. Bots drive up prices in the secondary market by creating artificial scarcity when fans try to purchase tickets from the artist or venue.
Professional soccer stadium and environmental cleanup in Everett. It allows for the construction of a professional soccer stadium and waterfront park on a parcel of land in Everett by removing the parcel’s classification as a designated port area. The change is expected to have positive environmental and economic impacts in surrounding communities as well as improve public transit connectivity.
Public funding for the construction of the stadium is not allowed, and funding for public infrastructure improvements associated with the stadium would require matching private funds. The language also requires community mitigation agreements with the cities of Everett and Boston.
Strengthening local and regional public health systems. It overhauls the state’s fragmented public health system to ensure strong public health protections for all residents regardless of race, income, or zip code.
Honoring Mayor Menino. The bill renames the Boston Convention and Exhibition Center the Thomas Michael Menino Convention and Exhibition Center.
Pathway for foreign-trained physicians. It creates a pathway in Massachusetts for physicians previously authorized to practice medicine outside the United States to practice in an underserved region of the Commonwealth.
Nurse licensure compact. It includes a provision to admit Massachusetts in the national nurse licensure compact, which will help alleviate the critical workforce challenges facing the health care sector.
Civil service reforms. This legislation modernizes Massachusetts civil service laws to give communities more options in filling vacancies while giving qualified job seekers more opportunities to find a match.
Data centers tax credit. It creates a new tax credit to attract investment in qualified data centers.
Childcare as campaign expense. It removes current limitations on political candidates using campaign funds for childcare services that occur because of campaign activities.
FAFSA. The bill requires each school district to notify students prior to graduating from high school of the availability of FAFSA (Free Application for Federal Student Aid) and to provide students with information on financial aid options.
Liquor license equity. It removes an archaic requirement that a restaurant liquor license holder be a United States citizen, thereby creating a pathway for other qualified immigrants.
Project labor agreements. It authorizes public agencies and municipalities to enter into project labor agreements for public works contracts when such an agreement is in the best interest of the public agency or municipality.
Sustainability for farmers. Finally, the bill allows farmers to diversify how they use their farms, including using land for agritourism and selling goods made from produce they have grown themselves.
As always, please do not hesitate to contact my office if you have any questions or concerns.
Best Regards,
Jay