Bill > S1369

This bill proposes changes to economic development tax credits, which are financial incentives offered by the government to encourage specific business activities. Key provisions include the addition of three new tax credit programs to the definition of a tax credit program: the investment tax credit, the Devens refundable tax credit, and the abandoned building renovation deduction. Crucially, the bill introduces a sunset provision, meaning all tax credit programs will automatically expire after three years unless reauthorized by the legislature, and existing programs will expire after one year unless reauthorized. Before reauthorization, the Department of Revenue and the Office of Commonwealth Performance, Accountability and Transparency will review the effectiveness of each program, assessing metrics like revenue foregone, beneficiaries, and job creation, and will issue reports with recommendations for modification or elimination. Furthermore, all tax credit programs will now include a "clawback provision," allowing the state to recover tax revenue if recipients fail to meet stated goals, such as job creation targets. Finally, before proposing any new tax credit program, the governor must include specific details in the legislative proposal, such as the program's purpose, expected effectiveness, estimated revenue loss, and, for discretionary programs, criteria for awards, conditions, public disclosure of recipients, and enforcement mechanisms.