Massachusetts Life Sciences Sector Poised for Significant Job Growth with $30M Tax Incentive Program

The Massachusetts life sciences industry is set for a substantial boost as the state government announces a $29.9 million tax incentive program aimed at creating over 1,500 new jobs in the sector. This initiative, revealed by the Healey-Driscoll Administration and the Massachusetts Life Sciences Center (MLSC), underscores the state's commitment to maintaining its position as a global leader in life sciences innovation and research.

Tax Incentives Fuel Job Creation Across the State

The program, which has awarded tax incentives to 33 companies, is expected to generate 1,519 new life sciences positions in Massachusetts this year. While the majority of these roles will be concentrated in the traditional biotech hubs of Boston and Cambridge, accounting for 52% of the new positions, the initiative also promotes growth in other regions of the state.

Vertex Pharmaceuticals, a cornerstone of the Massachusetts biotech landscape, received the largest award of $5.61 million and plans to add 300 new jobs in Boston. This significant investment in Vertex highlights the state's strategy of supporting established industry leaders while fostering broader sector growth.

Governor Maura Healey emphasized the importance of the tax incentive program, stating, "The world looks to Massachusetts for the future of life sciences because we have built an ecosystem where innovative research, exceptional talent and public-private partnerships come together to drive significant progress."

Expanding Beyond Traditional Biotech Hubs

While Boston and Cambridge remain central to the state's life sciences ecosystem, the tax incentive program is also driving job creation in other areas. Eighteen of the 33 companies receiving awards will be adding positions outside of these two cities, including locations such as Bedford, Braintree, Canton, Chelmsford, Fall River, Lee, Lexington, Lowell, Newton, Northbridge, Norton, Southborough, Waltham, and Watertown.

This geographic diversification is a key aspect of the program, aiming to spread the economic benefits of the life sciences industry throughout Massachusetts. The initiative has resulted in:

• Ten companies receiving at least $1 million in tax incentive awards
• Four businesses committing to create 100 or more jobs each
• Twelve companies planning to add 50 or more positions

Future Opportunities and Accountability

The MLSC has announced an additional competitive round of tax incentives totaling $10.1 million, with applications open until July 16. This new round targets life sciences companies engaged in research and development, commercialization, and manufacturing within Massachusetts.

To ensure the effectiveness of the program, companies receiving awards must commit to creating and retaining the promised jobs through December 31, 2027. Regular reporting requirements are in place to document the positions created, with non-compliant companies facing decertification and the obligation to return the tax incentives to the Massachusetts Department of Revenue.

Since the MLSC's inception, life sciences companies have agreed to create more than 19,800 jobs in Massachusetts through the tax incentives program, demonstrating the long-term impact of this initiative on the state's economy and its position in the global life sciences landscape.