Mass. House Passes Economic Development And Competitiveness Bill To Strengthen Massachusetts Economy

Legislation advances innovation, housing, workforce development, small businesses, and local economic growth

BOSTON – The Massachusetts House of Representatives today passed a $561 million bond bill that strengthens key innovation sectors, supports small businesses, expands housing opportunities, and positions the Commonwealth for long-term economic growth and competitiveness. The legislation makes targeted updates across dozens of state programs to improve efficiency, encourage investment, reduce barriers to economic development, and better prepare Massachusetts for emerging industries and workforce needs.

“This legislation will bolster the Commonwealth’s competitiveness by expanding the housing supply, by safeguarding critical institutions and jobs, by attracting new investments, and by positioning Massachusetts for long-term economic success,” said House Speaker Ronald J. Mariano (D-Quincy). “As the Commonwealth continues to navigate a housing crisis, the reforms in this legislation will help to increase housing production – a prerequisite for bringing costs down. I want to thank Chair Michlewitz, Chair Fiola, Chair Finn, and all my colleagues in the House for working to ensure that this legislation delivers for Massachusetts residents.”

“This well-rounded economic development package makes significant, targeted investments into major sectors of the Commonwealth’s economy. By advancing this legislation we will be helping our small businesses cope with an ever-changing economic picture, while also making key advances for housing developments and protections across the Commonwealth,” said Representative Aaron Michlewitz, Chair of the House Committee on Ways & Means (D-Boston). “I want to thank Speaker Mariano for his leadership on this issue, and Chair Fiola for her hard work in getting this legislation to where it is today. Finally, I’m grateful to each of my House colleagues for their thoughtful input, and for voting to advance this critical legislation.”

“This economic development package represents a meaningful investment in the future of every community across the Commonwealth. As Vice Chair of the Joint Committee on Economic Development and Emerging Technologies, it was an incredible honor to work alongside Chair Carole Fiola, whose leadership and collaborative approach guided this legislation every step of the way. I am deeply grateful to Speaker Mariano and Chairman Michlewitz for their steadfast leadership and commitment to advancing a bill that strengthens our economy, expands housing opportunities, supports small businesses, invests in innovation, and prepares Massachusetts for the industries of tomorrow. From the 16th Suffolk District to every corner of the Commonwealth, this legislation creates new opportunities for residents, businesses, and municipalities alike, ensuring Massachusetts remains a national leader in economic growth and competitiveness,” said Representative Jessica Ann Giannino (D-Revere), House Vice-Chair of the Joint Committee on Economic Development and Emerging Technologies.

“Small business is the backbone of our economy. The LLC fee reform in this legislation will go a long way in assisting new small businesses to open and thrive in our Commonwealth. This important reform, along with significant investments in numerous segments of our economy, will help best position our economy for expected turbulent times ahead,” said Representative Jeffrey Rosario Turco (D. Winthrop).

Among its most significant provisions, the legislation:

• Addresses the state’s housing crisis by creating new tools to encourage housing production and adaptive reuse. The legislation authorizes municipalities to adopt commercial conversion zoning to transform underutilized commercial properties into housing and mixed-use developments through streamlined local approvals. It also establishes the “Yes in God’s Backyard” (YIGBY) framework, allowing multifamily housing as of right on qualifying land (maximum 4 acres) owned by religious institutions, except for land zoned for or used as a school, including institutions of higher education. A minimum 20 percent of the units must be affordable units. The bill also improves local planning and permitting by standardizing site plan review procedures and establishing training requirements for local land use boards to promote greater consistency and predictability in municipal decision-making.
• Empowers tenants and strengthens fair housing protections by creating a local option allowing municipalities to adopt a tenant right of first refusal for the sale of multifamily residential properties, giving tenants the opportunity to purchase their building after receiving notice of the owner’s intent to sell. The bill also strengthens fair housing protections and oversight of the real estate profession by expanding the composition and responsibilities of the Board of Registration of Real Estate Brokers and Salesmen.
• Strengthens the Commonwealth’s fiscal resilience by authorizing the Commonwealth Federal Matching, Fiscal Resilience and Debt Reduction Fund to help protect Massachusetts from reductions or delays in federal funding, support hospitals and community health centers serving vulnerable populations, provide pay-as-you-go capital funding for critical infrastructure projects, and establish a $200 million bridge funding reserve for public and private nonprofit colleges and universities facing uncertainty in federal research funding.
• Reduces the cost of starting a business by lowering the filing fee for a new limited liability company (LLC) from $500 to $100, making it more affordable for entrepreneurs to launch new businesses. The legislation also establishes a graduated annual reporting fee structure for most LLCs while maintaining higher filing fees for entities holding significant real estate assets, ensuring relief is targeted toward operating businesses and startups.
• Creates Massachusetts’ first comprehensive framework for micromobility devices by establishing safety standards and operational rules for personal transportation devices such as motorized bicycles. The bill classifies micromobility devices based on speed, establishes equipment and helmet requirements, sets a minimum operating age of 16 for powered micromobility devices, and defines where these devices may be used. It also authorizes registration and regulatory oversight, strengthens safety standards for lithium-ion batteries, and creates a working group to recommend additional long-term policies as the micromobility industry continues to evolve.
• Attracts the film, television and digital game development industry to Massachusetts by extending the period during which taxpayers may claim the Massachusetts film tax credit from 12 months to 24 months, and by creating a tax credit program to encourage digital game development in Massachusetts.

The bill includes $561 million in capital authorizations, such as:

• $100 million to strengthen the Commonwealth’s defense leadership and accelerate the development of cutting-edge national security solutions, also known as the SHIELD initiative.
• $75 million to support AI tools, infrastructure, and emerging technologies, and position Massachusetts as a national leader in AI and innovation.

• $50 million for municipal grants and technical assistance for the conversion of commercial properties into residential housing.
• $50 million for grants to support remediation efforts at former state-owned buildings.
• $25 million to support the expansion of a key capital program that helps businesses build or expand commercial, industrial, and manufacturing facilities.
• $25 million to support MassTech’s robotics initiative, helping advance R&D and move new technologies from the lab into real-world use.
• $25 million to support downtown revitalization through capital funding for infrastructure, public spaces, and placemaking projects that attract residents, businesses, and jobs.
• $25 million for capital grants to strengthen arts, culture, and the creative economy through investments in public spaces, historic districts, wayfinding, performance venues, and public art.
• $20 million in capital funding to invest in sites designed to attract international companies to Massachusetts.
• $20 million for the veterans supported housing initiative program.
• $10 million for capital grants that support food science, strengthen sustainable food systems, and help grow AgTech businesses.

Having passed the House of Representatives 148-2, the bill now goes to the Senate for consideration.