SENATE DOCKET, NO. 4274        FILED ON: 9/30/2026

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No.         

The Commonwealth of Massachusetts

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PRESENTED BY:

None

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
 Court assembled:

 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to establish a private education innovation contribution program.

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PETITION OF:

SENATE DOCKET, NO. 4274        FILED ON: 9/30/2026

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No.         

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Fourth General Court
(2025-2026)

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An Act to establish a private education innovation contribution program.

 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

 SECTION 1. The purpose of this act is to support research, innovation, and economic development within the Commonwealth by establishing a new mechanism through which private colleges, universities, and independent schools may contribute to state and local innovation initiatives. This act creates a structured fee in lieu of property taxes and provides an option for institutions to fund local innovation incubators as an alternative to direct municipal payments.

 SECTION 2. For the purposes of this act:

 “Private educational institution” shall mean any college, university, or independent school located within the Commonwealth that is exempt from municipal property taxation under chapter 59.

 “Innovation contribution” shall mean the annual fee established under this act.

 “Local innovation incubator” shall mean a program, facility, or initiative operated or funded within a municipality for the purpose of supporting research, entrepreneurship, workforce development, or technological advancement.

 “State Innovation Fund” shall mean the fund created under section 4 of this act.

 SECTION 3. (a) Each private educational institution shall remit an annual innovation contribution to the Commonwealth.

 (b) The amount of the contribution shall be determined by the Department of Revenue based on a formula that considers the assessed value of tax‑exempt property, institutional enrollment, and research activity.

 (c) A municipality may accept contributions from private educational institutions in lieu of the local portion of the innovation contribution if the institution elects to fund a local innovation incubator approved by the municipality.

 SECTION 4. (a) There is hereby established a State Innovation Fund, administered by the Executive Office of Economic Development.

 (b) Funds collected under this act shall be deposited into the State Innovation Fund.

 (c) The fund shall be used to support research, innovation, and economic development at public and private colleges and universities within the Commonwealth.

 (d) Public institutions of higher education shall not be required to remit innovation contributions but shall be eligible to receive funding under this section.

 SECTION 5. (a) Municipalities receiving contributions under this act shall use such funds to offset the fiscal impact of tax‑exempt property or to support local innovation incubators.

 (b) Municipalities shall file an annual report with the Executive Office for Administration and Finance detailing the use of funds received under this act.

 SECTION 6. The Department of Revenue and the Executive Office of Economic Development shall promulgate regulations necessary to implement this act, including the establishment of formulas, reporting requirements, and criteria for approval of local innovation incubators.

 SECTION 7. This act shall take effect on July 1 following its passage.