Thursday, August 5, 2010

President's Update: Governor Patrick Signs Economic Development Bill with Two Chamber "Renew Mass" Proposals

It is with great pleasure that I write to inform you that the Chamber's net operating loss (NOL) carry-forward extension and "3-in-3" investment incentive were both signed into law by Governor Patrick this morning (see image below).

These significant tax policy changes, which were enacted as part of an omnibus economic development bill, were first proposed by the Chamber in March as part of our Renew Mass economic recovery platform. Their enactment will provide a powerful boost to startups and innovation-based companies in Massachusetts.

This economic development bill also contains important provisions to extend development permits, improve combined reporting rules, and streamline state economic development efforts. Overall, this bill represents a thoughtful and targeted approach to economic and job recovery for Massachusetts. Details on the Chamber's tax incentives are as follows:
  • NOL Extension: A change in the state's net operating loss carry-forward period (currently among the most restrictive in the country) from 5 to 20 years - making the state more competitive for startups, innovation-based sectors, and cyclical industries such as manufacturing, construction, high technology, and life sciences.
  • 3-in-3 Incentive: The creation of a new 3% state capital gains tax rate on investments in Massachusetts-based startups held for at least three years - encouraging in-state startup activity and investment, promoting patient capital among investors, and spurring innovation and product commercialization.
The enactment of this bill, and the Chamber's tax incentives, will mean more jobs, investment, and innovation. In short, it will make Massachusetts a more competitive place to do business. This is a significant win for the Chamber, but more importantly, for the Massachusetts economy. It is an example of what government and the employer community can achieve when they work together.

Thank you very much for your continued support of the Chamber. Today's bill signing would not have been possible without it.

Sincerely,

Paul Guzzi
President & CEO
Greater Boston Chamber of Commerce

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