Massachusetts Law Allocates $400 Million for Climatetech Initiatives

Massachusetts Governor Maura Healey on Nov. 20 signed into law the Mass Leads Act, which provides $400 million in capital resources over the next decade to drive progress in the offshore wind sector and to foster innovation, manufacturing, and deployment of climatetech solutions.

The bill aims to spur Massachusetts’ economic growth by investing almost $4 billion in workforce training, scientific research, small business growth, and climate initiatives. The bill also covers consumer protection for electric vehicle owners, establishes a new Climatetech Tax Incentive Program, and develops the state’s offshore wind industry. The act also makes amendments to the Offshore Wind Tax Incentive Program to expand private sector investments in offshore wind.

The legislation includes a $500 million, 10-year capital reauthorization of the state’s Life Sciences Initiative, along with an expanded tax credit program to drive job creation and growth in the life sciences sector. Further, an unprecedented $400 million investment in climatetech initiatives, paired with a new tax incentive program, aims to support climatetech companies in Massachusetts. Additionally, $100 million is allocated to establish the Massachusetts AI Hub, aimed at fostering innovation and attracting top AI talent to the state.

Major offshore wind projects under development in Massachusetts include the 2.4 gigawatt (GW) SouthCoast offshore wind project and the 1.8 GW New England Wind project. The state has also joined Rhode Island to select almost 3 GW of offshore wind projects in a first-of-its-kind coordinated procurement.

The Massachusetts Clean Energy Center, in consultation with the Department of Revenue, will oversee the new Climatetech Tax Incentive Program. The program, which has an annual statutory cap of $30 million, will support businesses in research, development, and commercialization activities for novel climate technology.