BOSTON — On Thursday, the Massachusetts Legislature passed a sweeping economic development bill authorizing a nearly $4 billion infusion into the Commonwealth’s economy while making wide-ranging policy changes to make Massachusetts more competitive.

The bold investments in H.5100, An Act relative to strengthening Massachusetts’ economic leadership, will stimulate new and proven industries, support workforce development and talent retention, and modernize economic growth strategies. Provisions of the bill will support small businesses, communities, and cultural development, ensuring that businesses Main Streets across the Commonwealth benefit from the economic boost.

“This comprehensive legislation will strengthen our economic future by investing in the unique industries that set Massachusetts apart,” State Sen. Brendan Crighton said. “The bill will help us build on our already strong science and technology industries and will also boost local economies and create job opportunities for all residents by supporting small businesses and investing in our infrastructure. This critical investment in our future will have far-reaching positive impacts throughout the Commonwealth for years to come.”

“This historic economic development bill represents a major step forward in strengthening our statewide economy,” State Rep. Dan Cahill said. With these targeted investments, we’re laying the foundation for sustainable growth and creating opportunities for every citizen. This legislation not only strengthens our economy today, but builds a stronger, more resilient economy for generations to come.”

“This bill is a tour de force of investments in jobs and economic growth,” State Rep. Jenny Armini said. “It positions Massachusetts to create a climate tech juggernaut, while it maintains our dominance in life sciences. I’m also proud of policy changes like making childcare an allowable campaign expense. This will enable more parents — especially mothers — to run for office.”

Bond Authorizations

The legislation includes a total of $3.96 billion in capital authorizations for leading Massachusetts industries including life sciences and climatetech.

Climatetech investments

The bill provides $400 million in capital resources to the MassCEC (Massachusetts Clean Energy Center) to utilize over the next ten years, with $200 million authorized to support innovation and deployment of climatetech technologies and $200 million to support the offshore wind industry.

It also establishes a new tax credit to invest in climatetech companies. A new program housed at MassCEC will develop and expand employment opportunities in climatetech and promote climatetech-related economic development by supporting and stimulating research, development, innovation, manufacturing, deployment and commercialization in the climatetech sector. The credit will be subject to a $30 million annual cap.

Life sciences

This legislation authorizes $500 million over ten years for the Life Sciences Breakthrough Fund to reauthorize the Commonwealth’s life sciences initiative.

Known as Life Sciences 3.0, the reauthorization adds health equity, biosecurity, digital health, and artificial intelligence to the mission of the Life Sciences Center. The bill increases the annual tax credit authorization for the life sciences industry from $30 million to $40 million.

Additional authorizations include:

• $400 million for the MassWorks Infrastructure Program to support public infrastructure projects and create jobs
• $150 million for library construction projects
• $103 million for artificial intelligence in systems across the state
• $100 million for infrastructure improvements in rural communities
• $21 million for resilience in agriculture and fishing
• $40 million for food science innovations, including $10 million to support the state’s nascent alternative protein industry

Policy Changes

Numerous policy changes in the legislation targeted at growing the Massachusetts economy include

Support for small businesses

The bill restructures two quasi-state agencies that are designed to be the gateway for access to state resources, the Massachusetts Growth Capital Corporation (MGCC) and Massachusetts Development Finance Agency (MassDevelopment).

The legislation also authorizes a five-year pilot program for the Commonwealth to assist small businesses in acquiring surety bonds. Large capital projects, whether public or private, often require retention of a surety bond by the contractor as financial security. Historically, economically and socially disadvantaged businesses often cannot acquire these bonds because of a lack of credit history or collateral. This program creates a self-sustaining state assistance program to open doors for more of these businesses.

Educator diversity

It allows the Department of Elementary and Secondary Education (DESE) to develop an alternative certification process for teachers who may face challenges passing the educator certification exam but can otherwise demonstrate their competence as teachers. The change will help Massachusetts diversify the K-12 educator workforce.

Live theater tax credit

It launches a new tax credit of up to $7 million annually to support local live theater productions. The credit will help Massachusetts artists working towards Broadway or off-Broadway launch a national tour.

Craft beer at farmers markets

The legislation updates the law to allow for locally produced craft beer to be sold at farmers markets, like wine and cider currently.

Ticketing transparency

It requires ticket sellers to clearly disclose the actual ticket price when listing tickets online and bans automated ticket purchasing software, otherwise known as bots. Bots drive up prices in the secondary market by creating artificial scarcity when fans try to purchase tickets from the artist or venue.

Professional soccer stadium and environmental cleanup in Everett

It allows for the construction of a professional soccer stadium and waterfront park on a parcel of land in Everett by removing the parcel’s classification as a designated port area. The change is expected to have positive environmental and economic impacts in surrounding communities as well as improve public transit connectivity.

Public funding for the construction of the stadium is not allowed, and funding for public infrastructure improvements associated with the stadium would require matching private funds. The language also requires community mitigation agreements with the cities of Everett and Boston.

Strengthening local and regional public health systems

It overhauls the state’s fragmented public health system to ensure strong public health protections for all residents regardless of race, income, or zip code.

Honoring Mayor Menino

The bill renames the Boston Convention and Exhibition Center the Thomas Michael Menino Convention and Exhibition Center.

Pathway for foreign-trained physicians

It creates a pathway in Massachusetts for physicians previously authorized to practice medicine outside the United States to practice in an underserved region of the Commonwealth.

Nurse licensure compact

It includes a provision to admit Massachusetts in the national nurse licensure compact, which will help alleviate the critical workforce challenges facing the health care sector.

Civil service reforms

This legislation modernizes Massachusetts civil service laws to give communities more options in filling vacancies while giving qualified job seekers more opportunities to find a match.

Data centers tax credit

It creates a new tax credit to attract investment in qualified data centers.

Childcare as campaign expense

It removes current limitations on political candidates using campaign funds for childcare services that occur because of campaign activities.

FAFSA

The bill requires each school district to notify students prior to graduating from high school of the availability of FAFSA (Free Application for Federal Student Aid) and to provide students with information on financial aid options.

Liquor license equity

It removes an archaic requirement that a restaurant liquor license holder be a United States citizen, thereby creating a pathway for other qualified immigrants.

Project labor agreements

It authorizes public agencies and municipalities to enter into project labor agreements for public works contracts when such an agreement is in the best interest of the public agency or municipality.

Sustainability for farmers

Finally, the bill allows farmers to diversify how they use their farms, including using land for agritourism and selling goods made from produce they have grown themselves.

Having been passed by both chambers, the legislation now goes to the Governor’s desk for her signature.