Governor Healey Signs Economic Development Bill

BOSTON – Governor Maura Healey today signed into law the Mass Leads Act, an economic development bill that will make Massachusetts a global leader in emerging industries like climatetech and applied artificial intelligence (AI), while also building on the success of the state’s renowned life sciences sector. The package will create jobs, support business growth, expand workforce development programs and support rural and regional economic development initiatives. Governor Healey will host a ceremonial signing event in the near future. 
 

Bill to Strengthen Massachusetts’ Global Leadership in Climatetech, Life Sciences and AI
Mass Leads Act will also create jobs, expand workforce development programs, and support rural and regional economic development initiatives

The legislation positions the Healey-Driscoll Administration to begin executing on the billion-dollar initiatives proposed in March for climatetech and life sciences. This includes a $500 million capital reauthorization of the state’s Life Sciences Initiative over 10 years and an expansion of a tax credit program designed to spur job creation and growth in the life sciences industry, an unprecedented investment of $400 million in climatetech initiatives and a new tax incentive program to support climatetech companies in Massachusetts, and $100 million to create the Massachusetts AI Hub to boost innovation and attract AI talent to the state.

“Massachusetts is the best state in the nation to live, work, go to school, raise a family and build a future. That’s in large part due to our commitment to investing in cutting-edge industries that produce transformative innovations and make life better for people. The Mass Leads Act builds on this leadership, positioning us to the global hub for climate innovation and applied AI, while also growing our already world-renowned life sciences industry,” said Governor Maura Healey. “This legislation will create new jobs, strengthen our efforts to recruit and retain the best talent, support all of our communities, and grow our arts, culture and tourism sectors. We’re grateful for the partnership of the Legislature and proud to deliver these critical investments to the people and businesses of Massachusetts.” 

“The Mass Leads Act demonstrates our administration's commitment to supporting economic development in every city and town and for every resident of our state,” said Lieutenant Governor Kim Driscoll. “This bill will invest in our local economies, from rural areas of Western Mass to coastal communities of the Cape and Islands. It will help our residents pursue fulfilling careers while keeping talented graduates in our state, and it will boost the small businesses that are the backbone of our economy. With the support of the Legislature and the many partners who brought this bill to life, we are ready to lead our Massachusetts into the future." 

“Through billions of dollars in critical investments and tax credits, this economic development bill provides support for small businesses, and for larger companies at the forefront of innovation in the clean energy and the life sciences sectors. Ultimately, this legislation will help to ensure that the Commonwealth remains a hub for the 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, my colleagues in the House and our partners in the Senate for their work and commitment to getting this bill through the finish line.” 

"I’m proud of the collaboration between the Senate, House, Governor Healey, and her Administration that has delivered a comprehensive roadmap for the state’s future competitiveness and economic growth," said Senate President Karen Spilka (D-Ashland). "Together with our successful efforts to bolster our workforce through affordable childcare and free community college for all, the Governor's signature today is another bold step towards supporting our economic fundamentals and spurring growth in every region of our state. I would like to thank Governor Healey for her leadership, Economic Development Chair Finegold and Senate Ways and Means Chair Rodrigues for their steadfast advocacy on behalf of the residents and business owners of the Commonwealth, Senate members for their many contributions to this bill, and our colleagues in the House for their partnership in getting this done." 

The bill expands and creates several new tax incentives programs designed to spur job creation, develop the state’s talent pipeline, and support businesses looking to expand in Massachusetts. Mass Leads will also advance several permitting reforms to expand opportunity and improve predictability for development, including updates to support expedited permitting, allow for permitting extensions, and create a permit regulatory office within EOED. 

In line with the administration's commitment to rural communities, the bill codifies and recapitalizes the Rural Development Program within the Executive Office of Economic Development (EOED) at $100 million to ensure rural towns receive targeted resources to advance local priorities and unlock economic opportunity. The Rural Development Program received a record level of funding in FY25.  

The bill includes several investments in fundamentals that will enable a strong foundation for future economic growth, including a $400 million reauthorization for the MassWorks program, which supports public infrastructure improvements; $100 million for the Seaport Economic Council to support growth in coastal communities; and $250 million for the new Mass Impact Fund to support large, transformational projects that have the potential to yield significant economic impact. Mass Leads also supports housing and economic development prospects in Devens, the former military base that has been redeveloped into a regional enterprise zone, by eliminating a cap on the number of residential units and square feet of commercial and industrial development that can occur there.  

"From day one, we have set out to make Massachusetts the best place for individuals to pursue rewarding careers and for companies to start, scale and succeed. The Mass Leads Act will help us achieve that vision," said Economic Development Secretary Yvonne Hao. "With this bill, we are positioning Massachusetts to lead for future generations. I thank the Legislature for their partnership and the many stakeholders, business leaders, advocates, and residents of Team Massachusetts who helped us build this ambitious north star for our state's economic future." 

Mass Leads also includes several initiatives aimed at attracting and retaining talent in Massachusetts, such as a new program to support internships for students attending  Massachusetts-based colleges. The bill also creates a pathway for physicians previously authorized to practice medicine outside the United States to become licensed to practice in the state, which will help address a physician shortage while also improving access to care across the state.  

“The Mass Leads Act is a landmark piece of legislation that executes on our administration’s long-term capital strategy by investing in sectors that will fuel the Massachusetts economy well into the future,” said Administration and Finance Secretary Matthew J. Gorzkowicz. “With nearly $4 billion in bond authorizations, as well as tax incentives, new policy, and other investments, this legislation furthers Massachusetts’s competitive edge—creating jobs, supporting businesses, and equipping industries such as life sciences and climatetech to continue demonstrating global leadership and forward-looking innovation.” 

Mass Leads also includes important investments to advance business competitiveness and address the unique needs of the state’s key sectors. In addition to providing a capital reauthorization of the state’s successful Life Sciences Initiative, the bill will increase the annual life sciences tax incentive program from $30 million to $40 million and expand the mission of the Massachusetts Life Sciences Center to include programs that support preventative medicine and health-related AI. The bill also supports ambitious initiatives aimed at making Massachusetts a climatetech hub, including $400 million in capital resources to advance the offshore wind industry and stimulate innovation, manufacturing, and deployment of climatetech. The legislation also establishes a new climatetech incentive program to position Massachusetts to attract and retain leading climatetech companies and makes updates to the existing Offshore Wind Tax Incentive Program to advance the offshore wind industry. 

“This bill tackles the urgent challenges we face today. As climate change intensifies, we must act decisively. By investing in clean energy and climate technology, we’re not only fostering innovation but also transforming Massachusetts into a powerhouse in the climatetech industry, boosting our competitiveness on the global stage,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “This legislation is a bold step toward combating environmental degradation, creating good-paying jobs, and securing a sustainable, healthier future for everyone in Massachusetts.” 

A new $100 million authorization will create the Massachusetts AI Hub to facilitate the application of artificial intelligence across the state’s ecosystem. Reforms to the state’s Economic Development Incentive Program, which provides companies seeking to relocate to and grow in Massachusetts with tax credits in exchange for private investment and job creation, will make the program fully refundable and strengthen this key business development tool for the state, especially for early-stage companies. Additionally, the bill provides more than $300 million in capital authorization for new and existing programs at the Massachusetts Technology Collaborative to support advanced manufacturing, robotics, the Massachusetts TechHub Program, as well as for Small Business Technology Grants at MassVentures.  

Mass Leads also dedicates $45 million for small business support through Community Development Financial Institutions and Biz-M-Power, making capital and technical assistance available to underserved businesses.

In support of the tourism and cultural economy, the bill reauthorizes the Destination Development Grant Program at $40 million to allow for state investment in tourism assets and commits $50 million for the Cultural Facilities Fund so that the state can continue to partner with nonprofit cultural organizations in the cultural sector. The bill also establishes a new live theater tax credit designed to support the local and regional theater industry.  

The legislation also includes a series of reforms to the Home Improvement Contractor Program to better protect consumers, improve access to the program, and reflect the increased costs of construction. Other measures in the bill include provisions to facilitate the redevelopment of land in Everett for future use as a professional soccer stadium and waterfront park and a directive to merge two quasi governmental agencies overseen by EOED, Massachusetts Growth Capital Corporation and MassDevelopment, to ensure a more coordinated, cohesive approach to supporting small businesses.

The Mass Leads Act is central to a 10-year economic development strategy to execute the vision outlined in the administration’s 2023 economic development plan, Team Massachusetts: Leading Future Generations. 

The Governor’s filing letter will be available here shortly.  

Statements of Support 
Kendalle Burlin O’Connell, Esq., CEO and President, MassBIO: 
“On behalf of the MassBio community, I'd like to thank Governor Healey, Lieutenant Governor Driscoll, and Secretary Hao for spearheading the third iteration of the Life Sciences Initiative and our industry’s champions in House and Senate leadership for getting it across the finish line this session. The continued investment in infrastructure across the state and increases to the proven-effective Life Sciences Tax Incentive Program ensure that Team Massachusetts will have the tools to support innovation and the creation of lifesaving medicines and therapies for patients around the world - while lengthening our lead economically here at home.” 

Julie Kim, President, U.S. Business Unit and U.S. Country Head, Takeda Pharmaceuticals America, Inc: 
“On behalf of Takeda, I want to extend our congratulations to Governor Healey, Speaker Mariano, Senate President Spilka and members of the Massachusetts Legislature for passing this transformative economic development legislation, which will provide critical support to spur economic growth in the areas of life sciences, climate technology and applied artificial intelligence. It was an honor working alongside government, civic and business leaders as a member of Governor Healey’s Economic Development Planning Development Council to inform this legislation, which allows us to lengthen our lead in these important economic areas. As the largest life sciences employer in Massachusetts, we are especially grateful for the reauthorization of the Life Sciences Initiative with an expanded focus on initiatives to promote health equity and encourage the responsible use of artificial intelligence to address long-standing health disparities and drive breakthrough discoveries. Takeda looks forward to continuing to play an important role here in Massachusetts to bring better health for people and a brighter future for the world.” 

Brian Johnson, President, Massachusetts Medical Device Industry Council (MassMEDIC): 
“On behalf of the MassMEDIC community, I would like to thank Governor Maura Healey, Lieutenant Governor Kim Driscoll, Secretary Yvonne Hao, Senate President Karen Spilka, Speaker Ron Mariano, and the entire Massachusetts legislature for standing up for the Commonwealth's life sciences industry by including a new authorization of the Life Sciences Act in the landmark Mass Leads Act. This new authorization sends a strong signal to the rest of the world that Massachusetts remains deeply committed to the industry our state pioneered. The medical device industry is a critical piece of the Massachusetts economy. MassMEDIC’s 450 employers are located across the Commonwealth, employing more than 30,000 people from advanced manufacturing technicians, to engineers, to research doctors. Massachusetts leads the country in total exports of medical devices and is a top three US state in every metric of success and innovation. While states like California are losing good paying medtech jobs, Massachusetts is growing. Most importantly, our medtech sector is discovering, commercializing, and brining to consumers less invasive, and more effective devices to treat and manage diseases and chronic conditions. Together, our leaders in Massachusetts have committed to growing a stronger medtech industry. I applaud their commitment to expanding economic opportunity for people in all parts of the state and look forward to working with our government partners to execute this strategy.” 

Katie Rae, CEO and Managing Parter, The Engine Ventures: 
“The Mass Leads Act bridges the gap Tough Tech companies face between innovation and scalable manufacturing. By ensuring transformative technologies are developed and produced in Massachusetts, this legislation cements the Commonwealth's leadership not just in invention but in industrial competitiveness, driving growth in 21st-century industries. We at The Engine Ventures are proud to continue supporting this landmark effort.” 

Joe Curtatone, President, Alliance for Climate Transition (ACT): 
"The signing of the Mass Leads Act marks a pivotal step in fostering equitable economic growth and creating job opportunities for all communities across Massachusetts. We commend the Healey-Driscoll Administration and the legislature for their vision and leadership, and we are proud to have contributed to this effort, which reflects a shared commitment to building a stronger, more inclusive economy." 

Elizabeth Turnbull Henry, President, Environmental League of Massachusetts (ELM): 
“Massachusetts is well-suited to lead on climatetech and become the best state in the nation to start, staff, and scale climate solutions. But we need to compete if we are going to win the benefits for our environment and economy. The transformative climatetech provisions within the Economic Development Bill are an essential start to investing in this growing industry. Thanks to the Healey-Driscoll Administration and the Legislature, this ten-year initiative will expand our workforce, drive competitive growth, and catalyze the development of technology to fight climate change.” 

Tamara Small, CEO, NAIOP Massachusetts, The Commercial Real Estate Development Association: 
“NAIOP applauds the Healey-Driscoll Administration and the Legislature for the passage of a bold economic development bill. The critical permitting reforms signed into law today will bring increased predictability to developers, lenders, and communities, while ensuring housing and economic development projects throughout Massachusetts can move forward." 

Adam Chapdelaine, Executive Director and CEO, Massachusetts Municipal Association (MMA): 
“Cities and towns greatly appreciate the opportunities unlocked by the Mass Leads Act, and are grateful to the Healey-Driscoll administration and the Legislature for their dedicated work on this important legislation. This bill includes critical reforms to our civil service laws, bolsters support to local and regional public health, and provides significant funding for impactful local infrastructure programs such as MassWorks, the Rural Development Fund, library construction, and much more. Local leaders have a range of tools to further the economic vitality of communities across the Commonwealth — and are eager to get to work.” 

Elisabeth Reynolds, Professor, MIT Former Special Assistant the President for Manufacturing and Economic Development, National Economic Council, 2021/22: 
“The Mass Leads Act is a great collective achievement for the Commonwealth. It provides considered and targeted investments that will catalyze economic growth where Massachusetts has a competitive edge including in foundational areas like advanced manufacturing and AI.” 

Nicole Obi, President and CEO, Black Economic Council of Massachusetts (BECMA): 
"The Black Economic Council of Massachusetts applauds the leadership and collaboration of Governor Healey, Secretary Hao, and the entire Administration on this historic investment in the future of the Commonwealth. The Mass Leads Act represents a significant step forward in building a more robust, equitable, and inclusive Massachusetts economy, with programs and provisions that will create and expand opportunities for diverse and small businesses. BECMA is particularly excited about the historic investments in a life sciences center in Nubian Square and the funding allocated for BECMA’s new headquarters in Roxbury. We’re also proud to see our continued advocacy for innovative initiatives like the surety bonds pilot program succeed, as this provision will help bridge a critical access gap for minority and LGBTQ-owned businesses that compete for public construction contracts. We appreciate the Legislature for their hard work, contributions, and commitment to advancing this pivotal legislation, which will support the growth of small and micro businesses and lead to a more prosperous and competitive Commonwealth." 

Eneida M. Roman, CEO of Amplify Latinx: 
“We applaud Governor Healey for signing this historic economic development bill, which provides vital support for microbusinesses—many of them Latino and Black-owned—and opens new opportunities for minority entrepreneurs in sectors like life sciences and cleantech,” said Eneida Román, President & CEO of Amplify Latinx. “This bill reflects a commitment to building an inclusive economy, and Amplify Latinx looks forward to working with the Healey administration, elected leaders, and community partners to ensure its success and maximize its impact.” 

Ed Park, Co-Founder and CEO, Devoted Health, Inc: 
“As a company born right here in Massachusetts, we are excited to see the Governor’s vision for a Commonwealth economy that lifts us all through smart investments in the ideas, people and technology that pushes us forward. The Governor and her Administration also are to be applauded for reaching out to a diverse group of Massachusetts stakeholders to understand the many ways we can collaborate to ensure Massachusetts remains a top choice for innovators.” 

Julie Chen, Ph.D., Chancellor, UMass Lowell: 
“The Healey/Driscoll administration’s Mass Leads Act is an essential tool to build Massachusetts’ economic strength and ensure we educate and retain the talent we need to grow our leadership in industries like the life sciences, advanced manufacturing and robotics, health care and cleantech. Massachusetts’ network of public and private higher education institutions is one of our state’s most important assets. Through investments from the Mass Leads Act, organizations like UMass Lowell can work with industry to build the workforce and advance the research that will power the Commonwealth’s economic engine.” 

Kevin Tabb, MD, President and CEO, Beth Israel Lahey Health: 
“This economic development bill is a shining example of the Healey-Driscoll administration’s commitment to growing Massachusetts’ competitive edge in a number of critical sectors, including health care and the life sciences.  With input from across industries, Governor Healey, L Governor Driscoll and Secretary Hao have developed a blueprint to propel our economy forward and invest in efforts that will lift up diverse communities across the Commonwealth.” 

Sarah Hodges, Managing Partner, Pillar VC: 
“Massachusetts is recognized globally for our strength in life sciences and the world-class talent and innovation within our academic institutions. The Mass Leads Act directs nearly $4B in funding to these critical areas for our state, helping us maintain our lead in life sciences, retain the extraordinary students who attend our universities, and fuel our growth in AI, climatetech and other emerging areas of global importance.” 

JD Chesloff, President and CEO, Massachusetts Business Roundtable: 
“With the passage of the Mass Leads Act, the Governor and legislature are taking direct aim at addressing the state’s competitiveness, authorizing transformational investments in new and existing industries that are, and will, form the foundation of our economy for decades. Through a series of targeted investments and policy initiatives, the bill provides a bold and comprehensive set of tools that will reach every corner of the Commonwealth. As part of a statewide business community that has been sounding the alarm on these issues, the Roundtable is grateful to our public leaders for taking action and for the opportunity to collaborate with them on this legislation. It is now incumbent on the business community to work in partnership with government to implement this law, build upon its momentum, and carry it into 2025 to continue to address the state’s competitiveness challenges.” 

Jay Ash, President and CEO, Massachusetts Competitive Partnership: 
“Opportunities are abounding in the economy. The Mass Leads Act represents a bold move by the Healey-Driscoll Administration and the Legislature to position Massachusetts to compete and win in numerous sectors, in every region of our state, and to the benefit of our residents who do and will continue to make up the nation's best workforce. The economic development bill makes a major statement both inside and outside of the state: Massachusetts is not only open for business, but we're the best place to do that business!” 

Brooke Thomson, President and CEO, Associated Industries of Massachusetts (AIM): 
“Associated Industries of Massachusetts (AIM) celebrates the signing of the Mass Leads Act economic-development bill, which provides vital support to key industries through the infusion of close to $4 billion into the state economy to ensure that the Commonwealth remains competitive. AIM, representing 3,400 member businesses, believes the bill enhances Massachusetts’ ability to lead in sectors like life sciences, climate technology, advanced manufacturing and applied AI. I want to express my gratitude to Governor Maura Healey and Secretary Yvonne Hao for their leadership in convening The Economic Development Planning Council, on which I was proud to serve. The Council helped to craft the legislation and worked relentlessly to get this impactful bill over the finish line AIM also thanks the Legislature for making passage of this legislation a priority in 2025, demonstrating its commitment to creating an environment in which businesses can thrive, compete, and succeed.”