SOMERVILLE — Governor Maura Healey provided additional details on her economic development agenda on Thursday. She expressed her intention to extend the life sciences initiative funding to \(1 billion over the next decade and introduce a new \)1 billion climate tech initiative spanning ten years. This climate tech initiative will encompass investments in the offshore wind industry, including an investment fund and tax credits.
During a press conference at Form Energy in Somerville, a company specializing in energy storage technology, Healey outlined key components of her proposed legislation named the “Mass Leads Act.” While the complete bill is still being refined and is expected to undergo revisions by the Legislature post-filing, Healey emphasized an overall investment exceeding $3.5 billion.
Healey stressed the practicality and responsibility of the proposed measures, citing proven tax incentives that stimulate economic growth and ensure tangible outcomes. The legislation aims to address disparities based on race, ethnicity, and geography, with a particular focus on establishing an Applied AI Hub with a $100 million allocation.
Although specific funding details are yet to be disclosed, Healey’s office hinted at investments in cultural sectors, advanced manufacturing, and robotics to bolster Massachusetts’ competitive edge in these areas.
The life sciences initiative under Healey’s plan includes \(500 million in capital funding for the Massachusetts Life Sciences Center, alongside a \)350 million infusion into the life sciences tax incentive program. Additionally, $150 million is allocated for operational resources to enhance workforce training and support early-stage ventures in the life sciences domain.
Furthermore, Healey proposes an increase in the annual cap on life sciences tax incentives from \(30 million to \)50 million, subject to approval by Administration and Finance Secretary Matt Gorzkowicz. Recipients failing to meet specified revenue, job growth, and investment targets may face recapture of the incentives.
The climate tech initiative outlined by Healey advocates for \(400 million in capital funding for the Massachusetts Clean Energy Center, with equal distribution towards a clean energy investment fund and an offshore wind industry investment fund. The plan also encompasses \)300 million in tax incentives, including an annual $35 million offshore wind tax credit.
Yvonne Hao, Secretary of Economic Development, emphasized the importance of tracking metrics to ensure optimal returns on these investments, considering them as taxpayers’ money that demands accountability and efficiency.
As discussions progress, Massachusetts officials are weighing the state’s borrowing capacity to accommodate the proposed economic development initiatives. With a planned bond cap increase of approximately $125 million per year, the state aims to leverage these resources to support key sectors and drive innovation.
Julie Kim, U.S country head of Takeda, highlighted the significance of Massachusetts as a global hub for the company, attributing its strategic investments to the state’s robust healthcare ecosystem that fosters innovation from research to commercialization.
Healey’s ambitious economic development proposal aligns with her administration’s vision to fortify Massachusetts’ leadership in pivotal sectors. As she approaches her 15th month in office, the governor’s proactive stance underscores a sense of urgency for legislative action on the comprehensive economic agenda outlined since her inauguration.