Press Release

Murray: Senate Votes for Stronger Life Sciences Industry in the Commonwealth

Senate Bill Seeks Transparency and Oversight of Taxpayer-Funded Grants and Activities; Distributes incentives widely to help invigorate economically-distressed areas

(Boston, MA) – Senate President Therese Murray (D-Plymouth) announced today that the Senate on Thursday approved its own version of the highly-anticipated Life Sciences bill. The Senate made significant changes to ensure accountability and transparency of taxpayer-funded grants and activities while dedicating major investments to promote job growth and stimulate the slumping economy.

Senate President Murray said the Senate bill builds on the positive work of the Administration and the House, and provides greater safeguards and a wider distribution of benefits than previous versions.

“I’m very proud of the Senate’s work on this bill,” President Murray said. “This legislation will keep Massachusetts competitive with the rest of the world, while also paying closer attention to its structure, implementation and cost. It is a comprehensive, well-thought-out bill designed for the stability and prosperity of our economy, which we need now more than ever. I look forward to working with the House and the Administration to get this on the books as soon as possible.”

The Senate bill, like other versions, commits $500 million in capital funding for life sciences construction and improvement projects to ensure job growth within the industry. The funding authorizations would be distributed at now more than $50 million per year for the next 10 years.

The bill also supports $250 million in authorized tax incentives for life sciences companies that commit to grow jobs. The bill allows life sciences companies to apply for eligibility as a “certified life sciences project” to receive one or more of eight tax incentives. A total of $25 million in incentives per year would be granted for the next 10 years. 

The Senate’s legislation seeks to distribute the benefits of tax incentives more widely than other versions by favoring projects proposed for economically-distressed areas. The Senate bill also requires existing Massachusetts companies to achieve a job-growth rate of 10 percent to be eligible for incentives, compared to 25 percent in other versions of the bill.

The Senate version also includes significant changes that promote accountability and transparency in the use of taxpayer-funded capital dollars for industry projects and activities:

  • Eligibility for capital grants will require certification by Executive Branch agencies and the Massachusetts Life Sciences Center.
  • The use of capital authorizations for “venture capital” purposes will be prohibited.
  • Reporting of results from awarded tax incentives and capital grants will be improved by requiring more details about company performance.
  • The recoupment, or clawback, of grant money from certified companies that do not achieve job targets will be required. A similar clawback of tax incentives will be implemented with stronger reporting language.
  • Capital grants will be awarded by Executive Branch agencies rather than the Massachusetts Life Sciences Center (a quasi-public agency), and the Center’s authority to issue bonds will be eliminated.

Other features of the bill include:

  • Continued funding of the Massachusetts Life Sciences Center at $25 million per year for the next 10 years, for a total of $250 million via transfers from year-end surpluses.
  • $5 million from the budget to bolster the Capital Access Program for small businesses.

The bill will now go to the House of Representatives for further action.