MA Gov proposes $500M for life sciences

Massachusetts Gov. Charlie Baker announced a legislative proposal that would provide $500 million over five years for the life sciences sector, extending the state’s commitment to the biotech and medical technology industry. The money would be used for strategic investments in public infrastructure, research and development, workforce training and education. The proposal includes a $295 million bond authorization to provide capital funding,  up to $150 million in job-creating tax incentives, and $55 million for the Investment Fund, which would be provided through the annual consolidated net surplus, the same funding mechanism as the current initiative. The funding will continue to be managed by the Massachusetts Life Sciences Center (MLSC) and build on earlier investments. MLSC was charged with implementing the $1 billion, 10-year state-funded initiative that was signed into law by former Massachusetts Gov. Deval Patrick in 2008 and expires next year.

Strategic priorities for the initiative include strengthening investments in the state’s skilled workforce pipeline, expanding opportunities for companies to access both private investment capital and public infrastructure resources, and developing new scientific innovations that deliver higher outcomes, according to the governor’s announcement. In addition to the new bond authorization for MLSC, the proposal also extends and expands the authorization of a state tax credit that finances job growth. The proposal would permit the MLSC to award tax incentives for an additional ten years and increases the MLSC’s current annual statutory cap up to $30 million on tax credit awards.

Since its inception, Massachusetts, through the MLSC, has invested more than $650 million across the state, including:

• More than $429 million in capital infrastructure grants for research, manufacturing and administrative capabilities for companies and institutions throughout the Commonwealth;
• More than $116 million to medium-to-large companies committed to growing jobs within the Commonwealth through the MLSC Tax Incentive Program;
• $62 million for outfitting lab space in middle schools and high schools, advancing scientific research, subsidizing internships and developing programs to educate the state’s workforce; and,
• $33 million via grants and loans for small-to-medium sized businesses in the life sciences.

Baker made his announcement just prior to last week’s international BIO conference in San Diego. Next year’s conference is slated to be in Boston.