Bill > S2042

This bill introduces comprehensive reforms to economic development tax credits in Massachusetts by establishing three key provisions: sunset requirements, clawback mechanisms, and enhanced transparency for new tax incentive programs. First, the bill mandates that all existing tax incentives (including credits for film production, life sciences, research, historic rehabilitation, and many others) will automatically expire within one year unless the legislature specifically reauthorizes them, with each reauthorization including a new sunset provision that expires within three years. Second, the bill requires a clawback provision for all tax incentive programs, allowing the state to recoup tax benefits from recipients who fail to meet specific goals and benchmarks, such as job creation targets. Third, the bill requires that any new tax incentive program proposed by the governor must include detailed information such as the program's public policy purpose, expected effectiveness, estimated revenue impact, funding caps, award criteria, and administrative provisions. To ensure accountability, the Inspector General, in consultation with the Department of Revenue, will be responsible for reviewing each tax incentive program, evaluating its effectiveness using multiple criteria, and recommending whether the program should be continued, amended, or eliminated, with a comprehensive report submitted to the legislature.

Budget and Finance

https://malegislature.gov/Bills/194/S2042