Bill > S1881

This bill aims to introduce several provisions related to economic development tax credits in Massachusetts. Key points: 1. The bill defines "Tax Incentive" as various tax credits and deductions outlined in state law, such as the film tax credit, life sciences credit, historic rehabilitation credit, and others. 2. The bill requires all existing tax incentives to expire within one year unless reauthorized by the legislature, with any reauthorization including a "sunset provision" to expire within 3 years. 3. The bill mandates the Inspector General, in consultation with the Department of Revenue, to review and evaluate each tax incentive, and provide recommendations to the legislature on whether to continue, amend, or eliminate the incentive based on factors like policy goals, revenue impact, benefits, and job creation. 4. The bill introduces a "clawback provision" that allows the state to recoup forgone tax revenues from recipients who fail to meet stated goals and benchmarks of the tax incentive programs. 5. For any new tax incentive programs proposed, the bill requires the Governor to include details on the program's purpose, expected effectiveness, estimated revenue impact, and administrative provisions like award criteria and clawback mechanisms. The overall intent is to provide more oversight, accountability, and sunset provisions for economic development tax credits in Massachusetts.

Budget and Finance

https://malegislature.gov/Bills/193/S1881