Donahue Institute Report Finds ClimateTech Initiative Will Have $16B in Economic Impact Over 10 Years

Image

A new report published by the Economic & Public Policy Research group at the UMass Donahue Institute has found that the ClimateTech Initiative – proposed by Gov. Maura T. Healey’s administration’s as part of the Mass Leads Act – is expected to generate $16.4 billion in economic activity and create 6,670 new jobs over a decade.

The Mass Leads Act proposes a total investment of $1.3 billion over 10 years. The total includes $400 million in capital investment in offshore wind and early project development, $300 million in operating funds for the MassCEC, $300 million for a ClimateTech tax incentive program, and $350 million to modify the offshore wind tax credit program.

The Donahue Institute report found that in addition to generating $16.4 billion in economic activity and creating 6,670 jobs over 10 years, the initiative is expected to add $10.1 billion to the Massachusetts GDP and increase total income to $9.3 billion over 10 years. This new household and business activity will create an estimated $1.2 billion in new state and local tax revenues, the report found, with construction, education, manufacturing, transportation, and professional, scientific and technical services found to be the top five sectors that would be supported by the initiative.

The complete report, “Summary Economic Impacts of the ClimateTech Sector Policies of the Mass Leads Act,” can be found on the Donahue Institute website.