Sweeping Economic Development Bill Passes Massachusetts Legislature
State Senator Adam Gomez (D-Springfield), State Senator Jake Oliveira (D-Ludlow) and the Massachusetts Senate unanimously passed a comprehensive economic development bill on Thursday 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 $3.96 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. This includes nearly $10 million in bonding for projects in Springfield and $1.5 million in Chicopee, as well as nearly $40,000,000 for a new quantum innovation hub in the Pioneer Valley if authorized, working on topics including information sciences, therapeutic biomanufacturing, and creating alternative proteins.
“This bond bill and the funding path laid out for the coming years reflects our state’s commitment to reinvesting in items that will benefit people and businesses in a way that is sustainable and on the forefront of science, technology, and health,” commented Senator Gomez. “I am proud to see the goals to create new innovation hubs, including one in the Pioneer Valley, which promise to bring high-paying jobs to our region, and I am grateful for the ways that our body prioritized regional equity in our approach today. I look forward to fighting for this bond funding to be released, and seeing these ideas come to fruition.”
"Today, we take a significant step forward in ensuring that the benefits of economic growth reach every corner of our Commonwealth, especially Western Massachusetts. This economic development package reflects our commitment to regional equity, fostering job creation, supporting local businesses, and investing in the strengths of our unique communities," said Senator Oliveira. "I'm proud to have worked with my colleagues in the Western Mass delegation and the Legislature to prioritize innovation, workforce development, and sustainable practices. Together, we are laying the groundwork for a more inclusive and balanced economy that uplifts all regions and ensures prosperity for generations to come."
Highlights from the bill include:
Educator diversity. 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.
Climatetech investments. 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. 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.
Support for small businesses. 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.
Live theater tax credit. 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. Updates the law to allow for locally produced craft beer to be sold at farmers markets, like wine and cider currently.
Ticketing transparency. 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. 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. Overhauls the state’s fragmented public health system to ensure strong public health protections for all residents regardless of race, income, or zip code.
Pathway for foreign-trained physicians. 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. 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. 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. Creates a new tax credit to attract investment in qualified data centers.
Childcare as campaign expense. Removes current limitations on political candidates using campaign funds for childcare services that occur because of campaign activities.
FAFSA. 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. Removes archaic requirement that a restaurant liquor license holder be a United States citizen, thereby creating a pathway for other qualified immigrants.
Project labor agreements. 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. Allows farmers to diversify how they use their farms, including using land for agritourism and selling goods made from produce they have grown themselves.
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.
Capital Authorizations
The legislation includes a total of $3.96 billion in capital authorizations for leading Massachusetts industries like life sciences and climate tech.
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
$40 million for food science innovations, including $10 million to support the state’s nascent alternative protein industry