Economic Development

The Issue

The state has become a life science leader because of the favorable business and policy climate. Maintaining a high level of support for the industry is crucial as we face increasing competition from other states and countries.

Gov. Deval Patrick has proposed a $1 billion Life Science Initiative that includes $500 million in capital spending, $250 million in grants and financing and $250 million in tax benefits for the industry.

Our Position

We support the Life Science Initiative and are actively working in the legislature for its passage. This plan includes changes to the tax code that are vital for the future growth of the industry including:

  • A tax credit transfer program for emerging companies that would allow earned but unused tax credits to be transferred to entities with tax liabilities for cash.
  • An extension of the Research and Development sales tax exemption to include equipment or replacement parts that are purchased by a contractor before installation. Currently, only equipment bought directly by the company qualifies.
  • The elimination of confusing requirements that companies must meet a "receipts" test or an "expenditures" test to qualify for Research and Development tax exemptions.

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