The Chamber is pleased to announce that the 10-year, $1 billion Massachusetts Life Sciences Initiative was overwhelmingly passed by the Legislature and signed into law by the Governor in June. Included in this law is a Chamber-filed tax reform that extends the net operating loss (NOL) carry-forward period for life sciences companies in Massachusetts.

The Chamber had testified in support of and worked to advance the goals of this initiative, which seeks to secure Massachusetts’ global leadership in the life sciences industry through a series of tax incentives, capital expenditures, training initiatives, research grants and other targeted life sciences investments. The Chamber applauds the enactment of this landmark law and looks forward to engaging the Life Sciences Alliance and working with state government leaders and the Massachusetts Life Sciences Center closely during the critical implementation phase of this legislation.

The Chamber is working with House leadership to advance a cost containment bill that will enhance job growth and slow the growth of health care costs. Earlier this spring, the Senate passed a cost containment bill which included Chamber-supported provisions to expand electronic medical records and loan-forgiveness programs for health care professionals. The Chamber will continue working to ensure that its provisions help control health care costs without imposing anti-competitive rules or burdens on employers.

Future funding of health care reform continues to be an important issue. The Chamber believes that new assessments, whether on business or on health care providers, would worsen the health care inflation problem and make Massachusetts less competitive. The Chamber will continue working with state government and business leaders to see that cost containment measures are the primary response to any health care funding gaps.

The corporate tax issue is now being considered by a House-Senate conference committee, which could release its report sometime this week. The Chamber continues to work for corporate tax legislation that improves transparency and predictability in the tax code and strengthens employers' ability to grow in Massachusetts. Several Chamber-supported provisions have made it into both House and Senate versions - including a cut in the corporate tax rate and selected policy language – but there are still a number of differences to be resolved.

The Chamber is focused on minimizing the amount of discretion available to the state Department of Revenue in administering the corporate tax code, in order to make the filing process more predictable for taxpayers. The Chamber also continues to advocate for a cut in Massachusetts corporate tax rates, including the overall rate of 9.5% (fourth-highest in the country), the rate paid by financial service institutions, and the rate paid by S corporations. The Chamber and other business groups will continue to work with top state officials on these issues as the conference committee process moves forward.

Federal research funding is critical to the growth of Greater Boston’s innovation economy. In June, the Chamber led a delegation from its 41-chamber National Business Coalition for Federal Research (NBCFR) to Washington to lobby for increases in Defense Dept., Energy Dept., Homeland Security, NASA, NIH, and NSF research accounts in FY 2009.

The Chamber-led delegation met with top Congressional budget writers to lobby for sustained, above-inflation growth in each of these key accounts. Gains made in key accounts earlier this decade, including National Institutes of Health research and Defense Department basic and applied research, have been eroded by several years of inconsistent funding levels. The NBCFR will continue working to deliver unified business community support for renewing the federal commitment to early stage research & development.