House Passes Economic Development and Competitiveness Bill to Strengthen Massachusetts Economy

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.”

"I would like to thank Speaker Mariano and Chair Michlewitz for their efforts in advancing this economic development package. I am proud of the House's work to advance legislation that positions the Commonwealth for continued long-term economic success,” said Representative Carole A. Fiola (D-Fall River), House Chair of the Joint Committee on Economic Development and Emerging Technologies. “This legislation reflects Massachusetts' commitment to building an economy that is innovative, competitive and inclusive. By investing in housing, supporting entrepreneurs and small businesses, strengthening our innovation ecosystem, and preparing for emerging industries like artificial intelligence, Agtech, and the defense sector, we are making strategic investments that will create jobs and expand opportunity across every region of the Commonwealth. Just as importantly, this bill gives our cities and towns new tools to address local challenges, helps safeguard our economy against federal uncertainty, and ensures Massachusetts remains the best place to start a business, grow a company, and bring new ideas to market."

"The MassWINS Act builds on the momentum of the Mass Leads Act and delivers real tools for communities, from supporting small business growth to investing in emerging sectors that will play a pivotal role in the Commonwealth's economic future,” said Representative Michael J. Finn (D-West Springfield), House Chair of the Joint Committee on Bonding, Capital Expenditures and State Assets. “Massachusetts has always led with talent and ideas, and this bill ensures we keep that edge in robotics, AI, and the industries of tomorrow, while making it easier and more affordable to do business here at home today. I want to thank Speaker Mariano and Chair Michlewitz for bringing this important legislation forward."

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.