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
re
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.