Bill > S1571

This bill proposes several key changes to economic development tax credits in Massachusetts: 1. It defines "Tax Incentive" to include various tax credits and deductions related to economic development, such as the film tax credit, life sciences refundable jobs credit, and historic rehabilitation tax credit. 2. It requires all existing tax incentives to expire within one year unless reauthorized by the legislature, with each reauthorization including a sunset provision to expire within 5 years. 3. It requires any new transferable or refundable tax credit program to include a sunset provision with an expiration date up to 5 years after initial passage. 4. It directs the Inspector General to review and evaluate each tax incentive with an expiring sunset provision, and make recommendations to continue, amend, or eliminate the incentive based on factors like whether it is achieving its policy goals and the revenue forgone to administer it. 5. It requires any law containing a sunset provision to also include a "clawback" provision, allowing the state to recoup foregone tax receipts from recipients who fail to meet stated goals and benchmarks. 6. It requires the Governor to include certain details in any proposal for a new tax incentive program, such as its public policy purpose, estimates of foregone revenue, and provisions for administration and enforcement.

Budget and Finance

https://malegislature.gov/Bills/190/S1571