House Passes Economic Development Bond Bill

Bill reauthorizes life sciences initiative; invests in industries of the future

JULY 9, 2024

On Thursday, June 27th, Representative Bill Driscoll Jr. (D-Milton) joined his colleagues in the Massachusetts House of Representatives in passing an economic development bill that includes an array of investments and policy initiatives that aim to bolster support for workers and businesses, particularly in the life sciences, clean energy technology, and manufacturing industries, while retaining a larger focus on making Massachusetts more affordable and competitive. Funded at $3.40 billion in bond authorizations, with an additional $700 million worth of tax credits, An Act relative to strengthening massachusetts’ economic leadership strives to ensure that the Commonwealth is prepared to lead the innovation industries of the future.

Notably, the legislation authorizes public agencies or municipalities to use Project Labor Agreements (PLAs) if it is in the best interest of the Commonwealth and directs the Department of Labor Standards to promulgate regulations to increase diversity of contractors in PLAs. These provisions benefit over 75,000 union tradesmen and women across Massachusetts by clearly defining when agencies and municipalities should utilize a PLA. Clarifying the determination process and allowing for Project Labor Agreements will expand apprenticeship training and career opportunity while increasing diversity, and improving wages, hours, and overall quality of life for those in the industry. According to State House News Service, the bill requires municipalities and agencies to review how an agreement could impact cost, safety, quality, and efficiency.

“This comprehensive economic development bill makes targeted investments across sectors, striving to make Massachusetts more competitive and prosperous in order to strengthen our booming workforce. The PLA provisions specifically will expand opportunity for union workers, diversifying their workforce, and further offering guidance for more effective project processes,” said Driscoll. “These investments support the Commonwealth’s preparedness for the future, encouraging life science, clean energy, and technology developments. I want to thank the Speaker, Leadership, and all my remaining colleagues for their work to move this bill forward, legislation that ensures Massachusetts’ longevity as a national leader.”

“Through billions of dollars in critical investments and tax credits, the House’s economic development bill provides support for companies at the forefront of innovation in the clean energy and the life sciences sectors, among other burgeoning industries. Ultimately, this legislation will help to ensure that the Commonwealth remains a hub for those industries of the future, while also enhancing support for workers across Massachusetts,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Governor Healey for filing the bill originally, as well as Chairman Michlewitz and Chairman Parisella for the work that they did to guide it through the legislative process. Finally, I’m grateful to each of my colleagues in the House for their input, and for voting to advance these vital investments.”

“This well-rounded economic development package makes significant, targeted investments into major sectors of the Commonwealth’s economy. By renewing our commitment to the life sciences industry, and by making significant new investments into ClimateTech, we will be elevating the Commonwealths economy to be able to compete and thrive for years to come,” said Representative Aaron Michlewitz (D-Boston), Chair of the House Committee on Ways & Means. “I want to thank Speaker Mariano for his leadership on this issue, and Chair Parisella for his hard work in getting this legislation to where it is today. Finally, I’m grateful to each of my House colleagues for their thoughtful input, and for voting to advance this critical legislation.”

“I’d like to thank Speaker Mariano, Chairman Michlewitz, and my colleagues in the House for their hard work in passing this $3.5 billion economic development bill. This legislation promotes economic growth across all regions of the state and makes several targeted investments in key sectors like life sciences and climatetech,” said Representative Jerry Parisella (D-Beverly), House Chair of the Joint Committee on Economic Development and Emerging Technologies. "Highlights of this session's bill include $700 million in meaningful tax credits, new permitting reforms, workforce training & consumer protections around ticket sales, electric vehicle charging and home improvement contractors. This is an exciting time in Massachusetts history and I'm proud of the work done to keep us not only competitive, but a leader in vital industries."

Bond authorizations include:

$500 million for the Massachusetts Life Sciences Center to provide grants and loans in order to grow the life sciences industry in Massachusetts
$400 million for MassWorks public infrastructure grants to municipalities
$250 million for the Mass Impact grant program to support large transformational projects that will drive economic growth
$200 million for the Massachusetts Clean Energy Center (MassCEC) to support the research and commercialization of climate technology across the state
$200 million for the MassCEC to invest in research, and in the implementation of offshore wind infrastructure
$150 million for grants for cities and towns for approved library projects
$100 million for Municipal Financial Assistance Grants to municipal entities to assist them with workforce development
$100 million for Applied AI Hub Capital grant program to support the adoption and application of AI technology in the state's tech sectors
$100 million for the Rural Development Program providing financial assistance to exclusively rural areas with the goal of community development
$100 million for the Seaport Economic Council Grant program for municipalities for the construction/repair of coastal assets that have potential to stimulate economic growth

Tax credits include:

Life Sciences Tax Credit: increases the annual amount of life sciences tax credits from $30 million to $50 million. It decreases the length of time that the certification for a life sciences company is valid from five years to three years, and also repeals the Angel Investor Tax Credit.
Climatetech Industry Incentive Program and Tax Credit: creates a program that is modeled after the life sciences tax incentive program, capped at $30 million per year, to expand the Climatetech industry. Companies would be able to claim credits for: net new permanent full-time employees; capital investments; and eligible research costs. It also creates a sales tax exemption for construction, remodeling, and remediation of certain climatetech commercial facilities.
Economic Development Incentive Program (EDIP) Tax Credit: removes the $500,000 per calendar year cap on the total amount of refundable EDIP tax credits that may be awarded for a certified economic development project and removes the $5 million cumulative per year cap on refundable tax credits.
Live Theater Tax Credit: establishes a five-year live theater tax credit pilot program and tax credit, capped at $7 million per year, to support pre-Broadway, pre-off Broadway, national tour launches and regional professional theater productions.
Digital Interactive Media Tax Credit: establishes a five-year digital interactive media tax credit pilot program, capped at $5 million per year, to support the production of video games in the Commonwealth. It also establishes a sales tax exemption for digital interactive media production companies and students for production expenses.
Internship Tax Credit: establishes a tax credit for employers, capped at $100,000 per employer and $10 million total credits annually, that employ for 12 weeks a recent graduate of a public or private institution of higher education in Massachusetts.

Policy initiatives include:

Project Labor Agreements: authorizes public agencies or municipalities to use PLAs if it is in the best interest of the Commonwealth and directs the Department of Labor Standards to promulgate regulations to increase diversity of contractors in PLAs.
Thomas Michael Menino Convention and Exhibition Center: directs the Massachusetts Convention Center Authority to designate the Boston Convention and Exhibition Center as the Thomas Michael Menino Convention and Exhibition Center.
Combat Sports Governance Updates: modernizes the way the Commonwealth oversees combat sports such as mixed martial arts and boxing to encourage more events to be held in Massachusetts, and to provide greater protections for combatants. The bill allows MSAC to oversee and enforce contracts, revoke/suspend licenses and requires formal trainings for those regulating events. It also increases insurance coverage for combatants injured during events.
Rural Policy Commission and Rural Development Program: amends the definition of “rural community” to add municipalities with a population of less than 7,000 in the most recent census. It also establishes a rural development program, administered by the Executive Office of Economic Development (EOED), to promote economic opportunity in rural communities.
Workforce Investment Trust Fund: requires funds from the Workforce Investment Trust Fund to be competitively granted through existing workforce development programs that develop and strengthen workforce opportunities for low-income communities or vulnerable youth and young adults. Allows for funds to be granted to programs that provide opportunities for intellectual, developmental, or physical disabilities. and to facilitate work permits, professional credentialing, or other workforce opportunities for non-citizens residing lawfully in Massachusetts.
Broadband: authorizes governmental bodies to use the competitive sealed bid process under MGL 30B, instead of the procurement requirements for public works non-building construction contracts, to procure broadband internet service along with the design, installation, maintenance, and operation of broadband internet services for public buildings or public land.
Special Permit for Construction: requires construction or operations under a special permit or a site plan approval under local ordinance or by-law to conform to any subsequent amendment of the zoning ordinance or by-law or any other local land use regulations unless the use or construction is commenced within three years after the issuance of the special permit or site plan approval.
Commercial Electric Vehicle (EV) Charging Stations: requires commercial EV charging stations to be registered with division of standards under Office of Consumer Affairs and Business Regulation (OCABR) on a form developed by the division before offering charging services to the public. Requires all commercial electric vehicle charging stations operating as of January 1, 2025, to register with the division by January 1, 2026.
Capital Improvement Trust Funds: expands the purpose of the fund to include simulcasting.
Running Horse Capital Improvements Trust Fund: provides that the licensee in Suffolk County shall not be obligated to make any further payments to the Running Horse Capital Improvements Trust Fund.
Worcester County Simulcasting: authorizes a live racing meeting licensee in Worcester County to simulcast in any location in Worcester County.
Salesperson Licenses: allows Alcoholic Beverages Control Commission (ABCC) to grant to individuals employed as salesmen of farmer-distilleries the authority to solicit orders for alcoholic beverages on behalf of their employer.
Ticket Sales: makes several changes to modernize ticket sales laws and increase consumer protections, including increased audits and testing of paperless systems, clear and conspicuous fee disclosures, and guaranteed refunds in case of canceled events and other circumstances
Development at Devens: makes a number of technical updates to assist with planning and promote further residential development at Devens
Surety Bond Pilot Program: establishes a five-year surety bond assistance pilot program, subject to federal approval by the U.S. Treasury, to assist economically and socially disadvantaged businesses to secure contracts for capital projects in the form of technical or financial assistance.