Senate, House Approve Final Economic Development and Jobs Legislation
BOSTON – The Legislature yesterday sent final legislation to the Governor that implements strategically-focused economic development policies to make Massachusetts more competitive by improving the Commonwealth’s innovation economy, promoting economic prosperity through infrastructure investments and streamlined permitting, facilitating the expansion of new and existing businesses, and training our workforce for the future.
“This important legislation is the latest example of our dedicated commitment to promoting economic development, job creation, and continued reform to help support our residents and businesses as our economy continues to recover,” said Senator Karen Spilka. “Building upon past reforms championed in the Senate, this comprehensive bill will provide businesses and workers with the tools and support they need to succeed.”
To streamline the process of complying with regulations, the bill establishes a State Regulatory Ombudsman charged with helping employers navigate the state’s business-related regulation. The Ombudsman will also train workers to identify and reduce the impacts regulations have on small business.
This legislation makes investments in infrastructure through the creation of the MassWorks Infrastructure Program, which will serve as a one-stop-shop for infrastructure funding, thus simplifying the process for municipalities and enabling the state to allocate the funds in the most efficient manner. Additionally, given the recent success of Boston’s Innovation District, this bill makes more funding available for project financing via the I-cubed program.
In an effort to further strengthen the innovation economy in Massachusetts, this bill aims to prime the workers of tomorrow through the Innovation Investment Fund and the Talent Pipeline Program.
The Innovation Investment Fund, which will offer matching grants to research and development projects sponsored by the state’s world-class universities and research institutions, will put Massachusetts ahead of others on the front of innovation and economic development.
The Talent Pipeline Program allows students and young innovators to get a head start on their future by matching stipends for interns at technology and innovation start-ups. These early connections will make for a strong innovation economy in the long-term.
Additionally, the legislation provides for a recapitalization of the Workforce Competitiveness Trust Fund with a focus on “middle skill” jobs through collaboration between public educational institutions, workforce investment boards, and local employers.
This legislation also encourages economic growth by expanding expedited local permitting, which will enable communities to use the Chapter 43D local option program to promote residential development in addition to commercial and mixed-use development that are currently allowed by law.
Realizing that small businesses are the lifeblood of our Commonwealth, this bill provides financial support and a new online resource for owners. The bill first builds on the state’s already-strong commitment to small businesses by authorizing PRIM to invest at least $100 million in institutions that make capital available to small businesses and early-stage companies. And this bill also creates the Small Business Online Portal, which is a one-stop-shop for small-business owners looking for help or information.
Other provisions of the bill include:
- Establishes a sales tax holiday for August 11th and 12th, making it the seventh year the Commonwealth provides a sales tax exemption for two days and the eighth year with at least one sales-tax-free day;
- Creates a new Local Infrastructure Development Program that gives municipalities a new tool for leveraging private funding to finance infrastructure improvements needed to support economic development projects;
- Establishes a Massachusetts Creative Economy Network tasked with creating a mentoring network, developing certification for creative economy businesses and attracting private investment to creative economy businesses;
- Changes District Improvement Financing making it easier for cities and towns to use;
- Extends Brownfield tax credits for two additional years (until 2015);
- Extends for another two years state and local permits held by any developer who has been unable to proceed with their project because of tight credit markets;
- Increases the annual cap on the state Historic Rehabilitation tax credit from $50 million to $60 million;
- Transfers $4 million from one-time settlements to the Rainy Day Fund to go to the Smart Growth Housing Trust Fund;
- Provides $250,000 for a competitive grant program through the Small Business Association of New England that averts layoffs at manufacturing companies;
- Creates a Manufacturing Grant Program that will support small and mid-sized enterprises;
- Creates a Community Investment Grant Program that seeks to promote long-term public/private partnerships at the community level by providing a special donation tax credit for contributions made to selected community improvement efforts. This program will be run as a $1.5M grant program in 2013 and a community investment tax credit program through 2019; and
- Creates a new minimum corporate tax credit in the amount of the corporate minimum payment of $456, available to companies in their first three years of filing.