WeVote
Log In

Bill

Bill

HD 2984

An Act relative to business relocation after receiving state grant funding

194th Legislature (2025-2026) Introduced by Marcus Vaughn

EDIP recipients must forfeit or refund credits if they relocate outside Massachusetts within 20 years, with a bankruptcy exception.

Senate concurred
0
WeVote Research Nonpartisan
Bill Summary · HD 2984

Summary: House Bill HD 2984 — An Act relative to business relocation after receiving state grant funding

Purpose and goal

  • Create a binding requirement for recipients of Massachusetts Economic Development Incentive Program (EDIP) funding to deter relocation of their operations out of the Commonwealth.
  • If a recipient relocates outside Massachusetts within 20 years of receiving EDIP credits or grants, they must forfeit or refund those incentives (with a bankruptcy exception). The goal is to preserve the state's investment and encourage retention of jobs and investment.

Key provisions

  • Section amended: Section 3D of Chapter 23A of the General Laws (as appearing in the 2022 Official Edition).
  • New subsection: (f) inserted, defining a relocation clawback condition.
    • Applies to all EDIP contracts awarded by the Economic Assistance Coordinating Council (EACC) to a corporation, sole proprietorship, limited liability company (LLC), or partnership for a certified project (as defined in section 3A).
    • Requirement: Unless the entity declares bankruptcy under U.S. Code 11 (11 U.S.C.), the entity must forfeit or refund any credits or grants received under an EDIP contract if the entity relocates outside the Commonwealth within 20 years.
    • Enforcement: The Office of the Attorney General (AG) shall promulgate regulations to enforce this subsection (f).
    • Context: The EDIP contracts referenced are those defined by section 3A of Chapter 23A.

Who is affected

  • Eligible entities that receive EDIP incentives through EDIP contracts issued by the EACC, including:
    • Corporations
    • Sole proprietorships
    • Limited liability companies (LLCs)
    • Partnerships
  • These entities would face potential clawback if they relocate their operations outside Massachusetts within 20 years, subject to bankruptcy safeguards.

Enforcement and implementation

  • The AG is tasked with promulgating regulations to enforce subsection (f).
  • Enforcement mechanism centers on forfeiture or refund of EDIP credits/grants if relocation occurs within the 20-year window, with an exception for bankruptcy filings.

Legislative status and timeline

  • Introduced: February 27, 2025
  • Current status: Senate concurred
  • Legislative actions:
    • January 16, 2025: Filed as House Bill No. 502 (HD 2984), sponsored by Rep. Marcus S. Vaughn (Wrentham, 9th Norfolk).
    • February 27, 2025: Referred to the Committee on Economic Development and Emerging Technologies; Senate concurred on the same date.
  • Jurisdiction and session context: Proposed bill presented in the 194th General Court (2025-2026).

Potential impact and considerations

  • Creates a long-term retention incentive by introducing a 20-year clawback period for EDIP investments.
  • May influence corporate planning and relocation decisions for EDIP recipients.
  • Requires regulatory framework from the AG, which will define procedures, standards for determining relocation, and recapture processes.
  • The bankruptcy carve-out provides an exception to prevent penalty in cases of insolvency.

If you’d like, I can add a brief comparison to current law or draft a plain-language FAQ for businesses considering EDIP funding.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.