On November 20, 2024, Massachusetts Governor Maura Healey signed into law the Mass Leads Act (H.1500), a sweeping economic development bill that created new state incentives and funding for Climatetech, life sciences, and artificial intelligence.
The legislation represents a $3.5 billion investment package, with $2.8 billion supported through capital authorizations and $750 million sourced from statutory changes to economic development tax programs. These investments are structured around three priority areas outlined in the state's economic development plan, designed to position Massachusetts as a leader in emerging industries while strengthening existing sectors.
Top lawmakers from the Commonwealth touted the bill and its goals, saying:
“Massachusetts is the best state in the nation to live, work, go to school, raise a family and build a future. That's in large part due to our commitment to investing in cutting-edge industries that produce transformative innovations and make life better for people. The Mass Leads Act builds on this leadership, positioning us to the global hub for climate innovation and applied AI, while also growing our already world-renowned life sciences industry.” - Governor Maura Healey
"The Mass Leads Act demonstrates our administration's commitment to supporting economic development in every city and town and for every resident of our state." This bill will invest in our local economies, from rural areas of Western Mass to coastal communities of the Cape and Islands. It will help our residents pursue fulfilling careers while keeping talented graduates in our state, and it will boost the small businesses that are the backbone of our economy." - Lieutenant Governor Kim Driscoll
“Through billions of dollars in critical investments and tax credits, this economic development bill provides support for small businesses, and for larger companies at the forefront of innovation in the clean energy and the life sciences sectors.” - House Speaker Ronald J. Mariano
The Act established several targeted grant programs to support economic development across diverse sectors, including:
- $10 million for a grant program supporting nonprofit employment social enterprises that enhance economic development through the sale of goods and services
- $100 million for the Seaport Economic Council to stimulate growth in the maritime sector and coastal economy development
Overall, the legislation focuses on three major initiatives that seek to transform key sectors of the Massachusetts economy:
Climatetech Initiative
The landmark $1 billion, 10-year Climatetech Initiative aims to position Massachusetts as a climate innovation hub and includes historic investments in clean energy and climate technology:
Capital Funding ($400M)
- $200M through the Massachusetts Clean Energy Center (MassCEC) Clean Energy Investments Fund supporting research, innovation, manufacturing and deployment of Climatetech
- $200M for the Offshore Wind Industry Investment Fund advancing wind industry development
Tax and Operating Support ($600M)
- New $300M Climatetech Tax Incentive Program with $30M annual cap
- $300M in operating support over 10 years for MassCEC to deliver workforce training, internships, and strategic programs
Life Sciences Program
A $1 billion reauthorization helps strengthen Massachusetts' leadership in life sciences through:
Capital Investment ($500M)
- Life Sciences Capital Fund supporting health equity ventures and Research & Development (R&D)
- Focus on cross-sector collaboration between biotech, manufacturing, medical technology, higher education and healthcare
- Support for multi-institution partnerships and ecosystem development
Industry Growth Support
- Tax incentive cap increase from $30M to $40M annually through 2033
- Operating funds for workforce development and early-stage companies
- Expansion of the Pathmaker program that provides funding for industry-aligned training programs that helps address essential skills and talent supply gaps, while also connecting skilled, diverse workers with career opportunities in life sciences in Massachusetts
Applied AI and Innovation Programs
AI and Advanced Technology ($225M)
- $100M for Applied AI Hub enabling integration across state networks
- $100M for Seaport Economic Council coastal economy development
- $25M Robotics Investment Program advancing research and commercialization
Business Development Support
- $25M Business Builds Capital Program for efficiency improvements
- Integration with Business Front Door initiative
- Focus on sustainable economic growth and innovation
The legislation combines major investments in emerging technologies with broader economic development funding across Massachusetts. In addition to the Climatetech, life sciences, and AI initiatives, the Act allocates $400 million for MassWorks infrastructure grants, $100 million for rural development, and $90 million for cultural facilities and tourism. The Mass Leads Act, which begins implementation immediately, forms the foundation of the administration's Team Massachusetts: Leading Future Generations 10-year economic development strategy.
How Ankura Can Help
Ankura’s team of experts specializes in helping businesses across the United States navigate and secure state incentives to support growth, innovation, and development. Whether you are seeking tax credits, grants, or funding for your projects, our team provides tailored support to maximize the value of available programs. Our services include:
- Incentive Eligibility Assessment: Identifying the programs and opportunities best suited to your organization’s needs and goals.
- Strategic Application Support: Guiding you through the application process, ensuring compliance with program requirements, and developing compelling submissions.
- Financial Modeling and Impact Analysis: Creating detailed financial models to highlight the value of incentives and their impact on your projects.
- Stakeholder Advocacy: Engaging with local, state, and federal officials to build support for your projects and secure necessary approvals.
With over $300 million in state incentives secured for our clients in the past year, Ankura is your trusted partner in leveraging incentive programs to achieve your strategic objectives. Do you want a consultation and an estimate of how much state incentives your project might be eligible for? Contact us here.
References
Bill Text: H.5100
Text Signed into Law: Chapter 238 of the Acts of 2024
Gov. Healey Press Release: Governor Maura Healey Press Release
Website: Mass Leads Act
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