Rep. Donato Supports Economic Development Bill

The Massachusetts Legislature in a show of nonpartisanship and efficiency passed some very powerful legislation in the closing sessions of the legislative calendar in the areas of pay equity, municipal relief, energy, and other topics. However, one bill in particular, Economic Development and Emerging Technologies, I feel stands out as an important bill that will have a long standing effect on the Commonwealth’s economic stability. I offer you the following summary of that bill.

The bill creates new initiatives as well as provides a variety of changes to existing initiatives, all of which are aimed at promoting job creation, workforce development and infrastructure improvements.

The bill authorizes $1 billion in capital spending for the following targeted investments…

– $500 million for Mass Works Infrastructure Program which provides a one-stop shop for municipalities and other eligible public entities seeking public infrastructure funding to support economic development.

– $71 million for National Network for Manufacturing Innovation Funding for matching grants to enable Massachusetts colleges and universities to participate in NNMI a federal initiative that brings together manufacturers, university engineering schools, community colleges, federal agencies, non-profits, and regional and state organizations to invest in unique, but industrially relevant, manufacturing technologies with broad commercial applications.

– $15 million for Site Readiness Fund a program administered by MassDevelopment that promotes site assembly, site assessment, pre-development permitting and other pre-development and marketing activities.

– $15 million for Innovation Infrastructure Program to make grants and loans available to municipalities, private property owners, and business operations for design, construction and improvement of buildings and for equipment to spur innovation and entrepreneurship across the state.

– $45 million for the Brownsfield Redevelopment Fund providing grants for environmental site assessment and clean up to encourage development and reuse of brownfields that are vacant, abandoned, or underutilized.

– 45 million for the Transformative Development Fund to make equity investments in major development projects in Gateway cities.

– $15 million for the Scientific and Technology R&D Matching Grant Fund which offers matching grants to research and development projects sponsored by the state’s universities and research institutions. Fifty percent of this funding is reserved for UMass institutions.

– $30 million for the Advanced Manufacturing, Technology and Training Trust Fund that will establish and support training and education programs to address workforce shortages in manufacturing, technology, and hospitality industries.

– $6 million for the Massachusetts Food Trust Program which provides grants and technical assistance to support access to healthy food options and improve economic opportunities for nutritionally underserved communities in urban, rural, and suburban localities.

– $4.5 million in capital spending to establish a Cybersecurity and Data analytics Technology Development and Training Center. The center will convene public and private universities, governmental bodies, and industry participants for the purpose of expanding the Massachusetts’ data analytics and cybersecurity capabilities

– $15 million for the Smart Growth Housing Trust Fund. This account funds incentive payments to communities that create dense residential or mixed-use smart growth zoning districts in accordance with the Smart Growth Zoning Overlay District Act.

– $45 million in capital dollars to purchase and install equipment and related building improvements for career technical education and training programs that are aligned to regional economic and workforce development priorities. The Workforce Skills Capital Grant Program is a new initiative of the Workforce Skills Cabinet, which seeks to align education, workforce and economic development strategies across the state.

– $2.4 million for the Early College High School Program. The competitive grant program encourages partnerships between school districts and institutions of public higher education. These partnerships allow students pursuing a high school diploma to simultaneously earn free college credits toward an associate degree or other professional certificates

– $107.5 million for Massport’s Conley Terminal in South Boston. The authorization will support the construction of a new berth and new cranes to handle the increased demand and activity in the port.

– $25 million in capital spending for Coastal and Inland Waterways to support market rate housing projects in Gateway Cities. The pilot program will supplement the Housing Development Incentive Program (HDIP) to encourage redevelopment of underutilized buildings in Gateway Cities.

– $25 million for the Designated Port Area Fund. The fund will provide financial assistance to properties within a designated port area to support the design, construction, repair, renovation, rehabilitation or other capital improvements related to commercial and marine industrial infrastructure and public maritime transportation infrastructure.

– $1 million for Urban Revitalization and Development Grants to meet costs associated with approved urban renewal projects. This program assists towns and cities, through their urban renewal agencies, to revitalize land uses and encourage new growth through residential, commercial, or industrial redevelopment projects.

– $25 million for the State Police and Boston Regional Intelligence Center to enhance and expand technology capabilities for the Massachusetts State Police and the Boston Police Department in establishing and improving programs for the prevention of economic cybercrime, terrorist activities, organized crime, and to enhance emergency response and transportation infrastructure alerts

In addition to the capital expenditures listed above, this bill significantly restructures the state’s Economic Development Incentive Program (EDIP). This bill also establishes a new tax incentive for contributions to a prepaid tuition program or college savings program established by the commonwealth, also known as 529 plans. For single filers and married filing separate or head of household, a deduction is allowed of up to $1,000. For married filing jointly, a deduction is allowed of up to $2,000.

Additionally, the bill addresses reforms in the Housing Development Incentive Program, Chapter 40R and Smart Growth Zoning, allows cities and towns the opportunity to establish Community Benefits Districts, and allows tax credits to owners who sell their property to nonprofit organizations for use as affordable housing.

The bill also involved reforms in The Urban Center Housing Tax Incentive Program, Regional Economic Development Organization, Digital eHealth Institute, Fantasy Contests, “blue Law” exemptions for warehouses and fulfillment centers, unemployment insurance job training, recruitment, hiring, and retention of people with disabilities, provides for liquor license in house café, as well as additional liquor provisions.

As you can see, the legislation is comprehensive and will position the Commonwealth for the future.

– Submitted by Rep. Donato