The Massachusetts House of Representatives killed legislation aimed at reviving stalled projects yesterday, throwing development permits across the state into question.

House leaders removed language from a sweeping economic development bill that would have extended in-place permits for two years.

NAIOP Massachusetts had originally submitted the measure as a standalone bill in January 2009.

The purpose of the NAIOP provision was to keep permits alive on projects that were already approved by local and state authorities, but had been put on hold because of the economic downturn and credit freeze. The bill was NAIOP’s top legislative priority for the 2009-2010 session, which expires at the end of July.

"This was probably the most important element in the economic development bill," said David Begelfer, CEO of NAIOP Massachusetts. "For all the fine things in the bill, this would have the most direct impact on economic development when the market turns. To have construction financing, you need permits."

The Senate’s version of the bill, which was passed this past spring, contained the permit extension language. Begelfer said NAIOP will fight to preserve the measure in conference committee.

Begelfer said the Massachusetts Municipal Association had been pushing House leaders to exclude the permitting measure. MMA Executive Director Geoff Beckwith could not be reached for comment. A spokesman for House Speaker Robert DeLeo had no immediate comment.