A testifier urging a favorable report on House Bill 3248 told the Joint Committee on Revenue that the bill would create a five-year income tax exemption for newly incorporated manufacturing companies that produce consumer goods in the Commonwealth.

The testifier, who addressed the committee as a proponent of the measure, said the policy is intended to attract new manufacturers that are not currently operating in Massachusetts rather than to benefit existing companies. “This bill proposes a targeted 5 year income tax exemption for newly incorporated manufacturing companies that produce consumer goods within the Commonwealth,” the testifier said.

The speaker said a formal cost estimate from the Department of Revenue was still pending and framed the measure as a long-term investment rather than a short-term revenue loss. The testimony invoked Massachusetts’ manufacturing history and local research strengths at institutions such as the Massachusetts Institute of Technology.

The testifier cited a recent local example of manufacturing relocation: Cold Chain Technologies, based in Franklin, announced it would move manufacturing operations to other U.S. sites and lay off 82 Massachusetts employees. The speaker used that example to argue for policy measures to retain and attract manufacturing jobs.

A legislator who posed questions during the hearing (addressed in the record as “Mister Haugates”) asked about revenue implications and sequencing with federal changes; the testifier replied that prior legislative actions had decoupled and recoupled state policy from federal law at different times and that the committee could revisit alignment in the future. The Department of Revenue estimate for the bill’s fiscal impact was not provided at the hearing.

Discussion points

- Proposal: five-year income tax exemption for new manufacturing corporations incorporated in Massachusetts producing consumer goods.
- Fiscal data: Department of Revenue cost estimate not yet available; proponents framed the change as an investment to attract new operations.
- Local example: Cold Chain Technologies relocation cited as evidence of competitive pressures and job losses (82 layoffs cited in testimony).

No formal motion or vote related to House Bill 3248 was recorded during the hearing.

Ending

The committee heard the proponent’s testimony and members asked follow-up questions; the hearing record shows no committee decision during the session and DOR cost estimates were pending.