TAX CREDITS

The Economic Development Incentive Program (EDIP):  Provides discretionary tax credits to companies that generate at least 25% of sales out-of-state and commit to retaining and/or creating full-time jobs. Credits are offered for projects that meet the following designations:

  • Investment Tax Credit (ITC) of up to 10% for Certified Expansion and Enhanced Expansion projects – credit is non-refundable and non-transferable
  • Refundable Investment Tax Credit (ITC) of up to $1,000 per job (increases to $5,000 per job in Gateway community) for Job Creation Project (JCP) resulting in the creation of at least 100 jobs
  • Investment Tax Credit (ITC) of up to 40% of eligible investment for Manufacturing Retention Project (MRP) – credit is non-refundable and non-transferable

Massachusetts Life Sciences Initiative: Offers incentives to companies engaged in life sciences R&D, including a 10% credit on depreciable property (90% refundable), extension of NOL for 15 years, a special sales tax exemption, and a construction sales tax exemption.

Life Science Company Jobs Credit: A business in the life sciences industry that creates at least 50 new jobs may be eligible for a corporate income tax credit.  If the value of the jobs credit exceeds tax liability, up to 90% of the remaining credit will be refunded.

Research and Development Tax Credit: Massachusetts offers a permanent R&D tax credit which is separated into two categories. The first category is a 10% credit designed for qualified expenses.  The Commonwealth defines qualified expenses as those which would qualify for the federal R&D tax credit. The second category is a 15% credit available to basic research payments. This provides a credit for any costs related to donations and contributions made to research organizations like hospitals and universities. The R&D tax credit may be used to offset a company’s tax liability to the minimum tax of $456.

TAX EXEMPTIONS

Sales & Use Tax Exemptions: All machinery, replacement parts, and materials used by manufacturing and R&D corporations in research and development are exempt.

 

Last updated: April 2016

 

 


 
BIGGINS LACY SHAPIRO & COMPANY
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
30 S. Wacker, Suite 2200
Chicago, IL 60606
(312) 924-2490