Instructions For Form 355rd - Statement Relating To Research And Development printable pdf download

Instructions For Form 355rd - Statement Relating To Research And Development

Form 355RD Instructions

If the applicant is a Limited Liability Company (LLC), a copy of the

General Information

What If The

pplicant Is an LLC?

applicant’s Federal Form 8832, Entity Classification Election, must

Form 355RD must be filed by only those entities seeking classification

Who Should File Form 355RD?

be included with Form 355RD. U.S. Form 8832 is the means by

as a research and development corporation for purposes of claim-

which an LLC entity declares to the IRS how it elects to be treated

ing exemption from local property tax on their machinery situated in

for U.S. tax filing and reporting purposes.

a locality that has adopted the exemption provided under M.G.L.

Ch. 59, sec. 5(16).

In order to qualify as a research and development corporation, an

An entity qualifying as a research and development corporation

What

re the Required Qualifications?

entity must meet one of the following requirements. It must derive

under the requirements of M.G.L. Ch. 63, sections 38C and 42B

more than two-thirds of its Massachusetts receipts from research

may be eligible for the Investment Tax Credit provided under M.G.L.

and development or more than two-thirds of its Massachusetts ex-

Ch. 63, sec. 31A and for sales tax exemptions provided under

penditures must be allocable to research and development. See

M.G.L. Ch. 64H, sec. 6(r) and (s) on its purchases of materials and

Regulation 830 CMR 64H.6.4, Research and Development, for rules

machinery used directly and exclusively in research and develop-

on eligible receipts and expenditures.

ment. This is without regard to whether it is classified by the Com-

missioner as a research and development corporation.

Applications for classification as a research and development corpo-

When

pplications Due?

ration must be sent to the Department of Revenue on or before Jan-

uary 31 of the calendar year for which classification is sought to be

considered for that year. Applications sent after January 31 will be

reviewed for classification for the following calendar year. The date

of the postmark made by the United States Postal Service on the

envelope in which the application is mailed shall determine the date

the application was sent.

Instructions For Form 355rd - Statement Relating To Research And Development