Brewer Announces Legislation to Strengthen Economic Development and Job Growth
August Sales Tax Holiday Approved
(Boston) – Senator Stephen M. Brewer (D-Barre) announced today that House and Senate sent final legislation to the Governor that implements strategically-focused economic development policies to make Massachusetts more competitive by improving the Commonwealth’s innovation economy, promoting economic prosperity through infrastructure investments and streamlined permitting, facilitating the expansion of new and existing businesses, and training our workforce for the future. The bill also includes language that would establish a sales tax holiday for August 11th and 12th, making it the seventh year the Commonwealth provides a sales tax exemption for two days and the eighth year with at least one sales-tax-free day;
“We have worked meticulously on this bill and have come up with a lot of very good, very important targeted investments,” said Brewer. “As our economy starts to turn around, we need to continue to make smart decisions about the future of this Commonwealth. This bill supports plans for economic development and future job creation, while also focusing on the immediate needs of our existing workforce and small businesses.”
The bill includes important language aimed at developing the state’s workforce and ensures that the proper training is available to fill existing job opportunities. The bill adopts a talent pipeline that provides paid internships to technology startups and innovative companies to support and enhance entrepreneurship. Additionally, the legislation provides for a recapitalization of the Workforce Competitiveness Trust Fund with a focus on “middle skill” jobs through collaboration between public educational institutions, workforce investment boards, and local employers.
The bill also provides grant money for layoff aversion through providing consultant and technical assistance to manufacturing companies to prevent business closure and employee displacement.
This legislation also makes investments in infrastructure through the creation of the MassWorks Infrastructure Program, which will serve as a one-stop-shop for infrastructure funding, thus simplifying the process for municipalities and enabling the state to allocate the funds in the most efficient manner.
In an effort to further strengthen the innovation economy in Massachusetts, this bill aims to prime the workers of tomorrow through the Innovation Investment Fund, which will offer matching grants to research and development projects sponsored by the state’s world-class universities and research institutions. The investment will put Massachusetts ahead of others on the front of innovation and economic development.
Realizing that small businesses are the lifeblood of our Commonwealth, this bill provides financial support and a new online resource for owners. The bill first builds on the state’s already-strong commitment to small businesses by authorizing the Pension Reserves Investment Management board to invest at least $100 million in institutions that make capital available to small businesses and early-stage companies. The bill also creates the Small Business Online Portal, a one-stop-shop for small-business owners looking for help or information.
Other provisions of the bill include:
Creates a new Local Infrastructure Development Program that gives municipalities a new tool for leveraging private funding to finance infrastructure improvements needed to support economic development projects;
Establishes a Massachusetts Creative Economy Network tasked with creating a mentoring network, developing certification for creative economy businesses and attracting private investment to creative economy businesses;
Changes District Improvement Financing making it easier for cities and towns to use;
Extends Brownfield tax credits for two additional years (until 2015);
Extends for another two years state and local permits held by any developer who has been unable to proceed with their project because of tight credit markets;
Increases the annual cap on the state Historic Rehabilitation tax credit from $50 million to $60 million;
Transfers $4 million from one-time settlements to the Rainy Day Fund to go to the Smart Growth Housing Trust Fund;
Provides $250,000 for a competitive grant program through the Small Business Association of New England that averts layoffs at manufacturing companies;
Creates a Manufacturing Grant Program that will support small and mid-sized enterprises;
Creates a Community Investment Grant Program that seeks to promote long-term public/private partnerships at the community level by providing a special donation tax credit for contributions made to selected community improvement efforts. This program will be run as a $1.5M grant program in 2013 and a community investment tax credit program through 2019; and
Creates a new minimum corporate tax credit in the amount of the corporate minimum payment of $456, available to companies in their first three years of filing.
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Posted: Thu, Aug 2, 2012
Updated Thu, Aug 2, 2012