The Massachusetts General Court recently passed MA House Bill 4352, an economic development bill relative to several infrastructure investment measures, enhanced competitiveness and economic growth in the Commonwealth of Massachusetts. Among other provisions, HB 4352 would have increased the annual Massachusetts Historic Rehabilitation Tax Credit program (MHRTC) tax credit cap from $50 million to $60 million per year.
After being passed by both Houses of the Massachusetts General Court, the bill was then brought before Governor Deval Patrick on July 31, 2012. While certain provisions were signed into law by the Governor, a number of provisions that would have extended or expanded some of the state’s existing tax credits were vetoed. Governor Patrick’s Secretary of Housing and Economic Development said the Governor’s vetoes were based on the lack of concrete evidence that indicates tax credits are an effective means for spurring economic investment in the state. With the Legislature out of session, the governor’s vetoes won’t be overridden.