At the forefront are several proposals Governor Healey included in his $3.5 billion budget to boost life sciences, clean energy and other climate-related business in Massachusetts.
The bill would allow the state to borrow $500 million over 10 years for life sciences and $400 million for the so-called Climate Technology Initiative. In return, the bill would increase tax incentives for life sciences companies by $200 million and create a $300 million tax credit for climate technology investments, amounting to $30 million per year for 10 years.
Massachusetts is already considered to be at the forefront of attracting climate tech companies and investment, but much like the state’s bet on life sciences 15 years ago under then-Governor Deval Patrick, Governor Healey’s proposal, and the current House proposal, aims to give Massachusetts an edge over rivals like California and New York.
Rep. Gerald Parisella, D-N.Y., chairman of the House Economic Development Committee, said one state report suggests every dollar the state invests could spur about $16 in economic activity.
“It seems like a good investment, and we want to make sure we take advantage of it,” said Parisella, a Beverly Democrat.
That focus has garnered support from both business leaders and environmentalists, who say the proposal could move the state toward two goals: providing an economic engine beyond Greater Boston and helping Massachusetts reach its net-zero goal. Reduce carbon dioxide emissions by 2050.
“We want to make sure that climate technology is available across the state,” said Casey Bowers, executive director of the Massachusetts Environmental League’s Action Fund. “For us, as we’re talking about economic development bond bills, this is a new area to address. But we know we have a lot of work to do to meet our climate goals.”
Notably, the bill does not include high-profile language that would have helped advance New England Revolution’s $500 million plan to build a new stadium on the Mystic River in Everett. Everett officials and Senate leaders have sought language that would have removed 43 acres from the so-called designated port area, a state division that limits certain waterfront parcels to industrial uses. The move is seen as one of the first steps to allowing the stadium to be built there.
The land, which currently houses the decommissioned portion of a power plant acquired by Wynn Resorts last year, is located just outside Boston, across the Mystic River from Charlestown and across Route 99 from the Encore Boston Harbor Casino.
The Senate had already passed the bill as part of a supplemental budget bill last year, but language was removed during negotiations with House leaders. House Democrats said at the time they were surprised by some elements of the community benefits agreement. The lawsuit between Everett and the Kraft Group was made public a few weeks ago.
A separate bill has been introduced in the Senate that would remove the facility from the DPA, but it is unclear when or if that bill will become law, either as a standalone bill or as an add-on to the economic development package that is due to reach Senator Healey’s desk.
Parisella said House members’ decision not to include the language in the bill wasn’t an indication of their position. “We just thought it would be best to make this a separate bill,” he said.
An aide to House Speaker Ron Mariano said the speaker was not available for an interview Monday. State Rep. Aaron Mischelwitz, the House Budget Committee chairman, did not respond to an interview request.
The House bill also advances a series of other initiatives. It includes a provision that would provide a $5 million annual tax credit to New York City and national touring theater productions. The bill would provide a 35 percent deduction for in-state employment costs and a 25 percent deduction for other expenses.
Lawmakers are also exploring the creation of a $5 million “digital interactive media” tax credit pilot program that would cover up to 25% of payroll costs for video game makers. They adopted another Healey proposal, creating a $10 million internship tax credit program that would allow employers to receive a credit of up to $5,000 for each paid intern they hire.
The House killed a separate bill, also proposed by Healey, that would have created a $250 million fund “to support large-scale, transformative projects to spur economic growth.” Parisella said the broadly worded requirement could be “catch-all” as the state tries to attract businesses.
“We’re fighting for economic vitality, and it’s amazing what other states, other cities, some countries are doing to compete,” said Jay Ash, president and CEO of the Massachusetts Competitive Partnership. The $250 million fund is “to give states more flexible resources. If we don’t compete, we’re going to fall behind.”
Overall, the bill is largely in line with what Healey, a first-term Democrat, called for in his own plan in some respects.
“If the governor’s bill is a coloring book, there’s not much to color outside the lines,” said Doug Howgate, president of the Massachusetts Taxpayers Foundation, a business-backed budget watchdog group.
Councilors also included separate language to rename the Boston Convention and Exhibition Center after Mr. Menino, Boston’s longest-serving mayor, under whose watch the Seaport began to transform from a parking-lot swath into a vibrant new neighborhood.
But it is the proposed investment in the clean energy sector that emerges as the biggest promise in the bill’s final outcome.
Healey has regularly called for the state to increase investment in the clean energy sector. May visited Rome where she met with world leaders. Speaking at a climate summit in the Vatican, she said her administration was aiming to invest a total of $1.3 billion in technology to make the country more resilient to climate change and accelerate the country’s transition to clean energy.
“We want to be a global innovation lab for the clean energy revolution,” she said.
Samantha J. Gross of the Globe staff contributed to this report.
Contact Matt Stout at matt.stout@globe.com. Follow us: mat.
