Massachusetts lawmakers approve $4B for major initiatives in life sciences, climatetech, and AI

On Nov. 14, the Massachusetts’ House and Senate approved a compromise $4 billion economic development measure after months of negotiations that followed the end of their formal legislative session this past summer and the spring release of Gov. Maura Healey’s $3.5 billion proposal, An Act relative to strengthening Massachusetts’ economic leadership, or the Mass Leads Act.  The Mass Leads Act sought to reauthorize the state’s life sciences investments at $1 billion for the next decade, launch a separate $1 billion, 10-year climatetech initiative, and build on the momentum of the state's CHIPS + Science wins by proposing targeted investments in advanced manufacturing and robotics. It also included $100 million to create an Applied AI Hub in Massachusetts.

The authorized investments in H.5100: An Act relative to strengthening Massachusetts’ economic leadership will encourage new and proven industries within Massachusetts, support workforce development and talent retention, and modernize economic growth strategies. The Act also provides for wide-ranging policy changes to make the state more competitive and authorizes $3.96 billion in capital bonds for the state’s life sciences and climatetech industries.

Climatetech. The legislation approves $400 million in capital resources to the MassCEC (Massachusetts Clean Energy Center) over the next ten years, with $200 million authorized to support innovation and deployment of climatetech technologies and $200 million to support the offshore wind industry. It also establishes a new tax credit for investments in climatetech companies. A new program housed at MassCEC will develop and expand employment opportunities in climatetech and promote climatetech-related economic development by supporting and spurring research, development, innovation, manufacturing, deployment, and commercialization in the climatetech sector. The credit will be subject to a $30 million annual cap.

Life sciences. H.5100 authorizes $500 million over ten years for the Life Sciences Breakthrough Fund to reauthorize the Commonwealth’s life sciences initiative. Known as Life Sciences 3.0, the reauthorization adds health equity, biosecurity, digital health, and artificial intelligence to the mission of the Life Sciences Center and will increase the annual tax credit authorization for the life sciences industry from $30 million to $40 million.

Other funding requested in the governor’s proposal and approved in this legislation include:

• $103 million for AI initiatives, and creates the Massachusetts AI Hub to facilitate the application of artificial intelligence across the state’s ecosystem ;
• 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; 
• $115 million to establish a Quantum Innovation Hub;
• $25 million appropriated to the Robotics Investment Program for capital grants to advance the state’s leadership in the robotics sector through research, commercialization, and training; and,
• $2 million towards a Life Sciences Career & Workforce Development Apprenticeship Hub.

The measure was sent to the governor for her review, and Gov. Healey signed it this week (Nov. 20).

Tags: life sciences, climate, artificial intelligence, quantum

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. (The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.