Mass. bill would require refund if grant-recipient business leaves state within 20 years

Representative Marcus S. Vaughn of Wrentham filed legislation Jan. 16 that would require businesses that received Economic Development Incentive Program grants to forfeit or refund those funds if they relocate outside Massachusetts within 20 years, except where the business declares bankruptcy as defined in U.S.C. 11.

The bill, filed as House No. 502 and titled “An Act relative to business relocation after receiving state grant funding,” would add subsection (f) to Section 3D of Chapter 23A of the General Laws. It applies to EDIP contracts awarded by the EACC to corporations, sole proprietorships, limited liability companies and partnerships for certified projects and directs the office of the attorney general to promulgate regulations to enforce the subsection.

Under the proposed language, any corporation, sole proprietorship, limited liability company or partnership that relocates outside the commonwealth within 20 years would forfeit or be required to refund credits or grants received under an EDIP contract, unless the entity has declared bankruptcy under U.S.C. 11. The bill text does not provide an estimate of how many businesses would be affected, what refund calculation method would be used, or an implementation timetable; those details are left to the attorney general’s forthcoming regulations and to committee review.

The filing record lists the committee reference as Economic Development and Emerging Technologies. The bill text does not record any committee action, vote, or debate; it is a legislative petition submitted to the House docket on Jan. 16, 2025.

Next steps under standard legislative procedure would include committee consideration and any hearings or amendments, but no such steps or dates are specified in the filing that was submitted to the House docket.