Massachusetts Awarded $40 Million in Life Science Tax Credits
The funding supports 38 companies as they look to expand manufacturing and research operations across the state.
Updated on Sept. 29, 2026 in Biotech
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Massachusetts has awarded $40 million in tax incentives to 38 life science companies, a move aimed at bolstering R&D and manufacturing capacity. The program, which covers a three-year period, is expected to generate more than 1,600 new jobs.
Why it matters
The program helps scale the state's life sciences sector by providing financial support for infrastructure and job creation. By focusing on expansion outside of major hubs like Boston and Cambridge, the initiative aims to distribute economic activity across the region.
The $40 million total represents a $10 million increase over the prior statutory cap established in November 2024. Insulet Corporation leads the current round with $10 million for 250 jobs, while Lila Sciences Inc. and Bristol-Myers Squibb received $3.6 million and $2.8 million respectively.
The players
Massachusetts Life Sciences Center
A state agency responsible for overseeing investment and development within the Massachusetts biotechnology and medical device industries.
Insulet Corporation
A medical device company based in Acton known for its wearable insulin delivery technology.
Bristol-Myers Squibb Company
A global biopharmaceutical firm operating manufacturing facilities in Devens.
The details
The program is administered by the Massachusetts Life Sciences Center and the Department of Revenue to facilitate operational growth. Awardees must meet specific performance metrics, including the creation and maintenance of new positions, over a three-year window. This funding framework relies on the Mass Leads Act, which allowed for the recent increase in the incentive ceiling to support wider industrial scaling.
Timeline
November 2024: The statutory tax incentive cap increased to $40 million.
Three-year period: Duration for companies to maintain reported job commitments.
The Tech Race
This tax incentive expansion follows the framework established by the Mass Leads Act to maintain regional competitiveness in the global life sciences market. By providing these grants, Massachusetts aims to prevent the concentration of R&D and manufacturing in higher-cost areas by incentivizing growth in secondary sites.
Local residents will see the direct impact through the creation of 1,600 jobs in research, development, and manufacturing sectors. With 71% of these positions located outside the Boston and Cambridge corridors, the expansion is expected to shift employment opportunities to other parts of the state.
The takeaway
The state's shift to expand industrial footprints outside traditional hubs marks a strategic effort to balance regional economic development. Observers should track the three-year job retention reporting to evaluate the effectiveness of these tax credits in sustaining long-term employment growth.
Further reading
For broader insights into the sector, visit Biotech.
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Do you support providing state tax incentives to life science companies to create local jobs?
