Bill > S1721

This bill proposes several key changes to economic development tax credits in Massachusetts: 1. It defines "Tax Incentive" to include various tax credits, deductions, and other programs across different chapters of state law. 2. It requires all existing tax incentive programs to expire within one year unless reauthorized by the legislature, which must then include a sunset provision of up to 3 years. 3. It requires any new transferable or refundable tax credit programs to include a sunset provision of up to 3 years. 4. It directs the Inspector General, in consultation with the Department of Revenue, to review each tax incentive program with a sunset provision, evaluate its effectiveness in achieving policy goals, and recommend whether to continue, amend, or eliminate the program. 5. It requires any tax incentive program with a sunset provision to include a "clawback" provision, allowing the state to recoup foregone tax revenue from recipients who fail to meet stated goals and benchmarks. 6. It mandates that any new tax incentive proposal submitted by the Governor for legislative approval include details on the program's purpose, expected effectiveness, estimated revenue impact, and provisions for administration and enforcement.

Budget and Finance

https://malegislature.gov/Bills/191/S1721