MA Legislature Passes Economic Development Bill

From the General Court of Massachusetts:

Rep. John V. Fernandes, D-Milford, joined his colleagues in the Massachusetts Legislature to pass an economic development bill that will enhance the state’s position as a global economic competitor and support residents through education programs.

For the first time, this legislation creates an education tax incentive program (529 plan) which will allow single filers to take a $1,000 tax deduction on contributions to college savings accounts.

“As the House Chairman of the Manufacturing Caucus, I have routinely engaged with manufacturing leaders, innovators and vocational educators across the state to pinpoint exactly what they are seeking in terms of timely state government investment and what their logistical, training and personnel needs are going forward, said Fernandes. “This targeted, timely and proven infusion of state resources will empower us to bolster economic development through infrastructure improvements near major highways, invest in our future manufacturing workforce at a critical time of industrywide vacancies and pending retirements, and promote growth in previously underserved and abandoned areas of industrial activity.”

“I’m proud that of this legislation passed by my colleagues. It will help our state remain on solid footing and prepare for a bright future,” said House Speaker Robert A. DeLeo (D-Winthrop). “The programs in this bill will complement one another and, in doing so, support residents from all backgrounds and businesses of many different industries. I truly believe the college savings plan will provide vital support to our students and families on one of the greatest expenses they undertake.”

Recognizing the unique role that early-growth companies and emerging sectors have in revitalizing the economy, this bill includes numerous provisions to support the innovation ecosystem including:

• Creates the Angel Investor Tax Credit to incentivize investment and foster growth in newly formed start-ups in Massachusetts. Investors are eligible for a 20 percent credit of the qualifying angel investment and 30 percent if the recipient business is located in a Gateway City.
• Allows for $500 Million in bonding authorization for the MassWorks Infrastructure program.
• Establishes the Digital eHealth Institute, which will be run by the Massachusetts Technology
  Collaborative in coordination with the Secretary of the Executive Office of Housing and Economic Development, to enhance the state’s rapidly emerging e-health cluster.
• Authorizes $4.5 Million to launch the Cybersecurity and Data Analytics Technology Department &
  Training Center. This organization will bring together universities, government and private industry participants to bolster the Commonwealth’s data analytics and cybersecurity sectors.

The legislation takes multiple steps to further develop talent, support students and keep graduates in Massachusetts. It authorizes:

• $45 million for Workforce Skills Capital Grants;
• $71 million the National Network for Manufacturing Innovation Funding;
• $30 million for the Advanced Manufacturing, Technology and Hospitality Training Trust Fund;
• $2.4 million for the Early College High School Initiative, a program that encourages partnerships
  between regional school districts and institutions of public higher education.

This bill also authorizes:

• $15 million for the Innovation Infrastructure Fund, a new grant and loan program aimed at
  spurring entrepreneurship across the state, particularly through the use of co-working spaces and innovation centers;
• $45 million for the Brownsfields Redevelopment Fund;
• $45 million for the Transformative Development Fund, a program that makes equity investments
  in major development programs in Gateway Cities.

The bill authorizes $15 Million for the Smart Growth Housing Trust Fund. The bill goes to the Governor’s desk for his signature.

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