Instructions For Massachusetts Premium Excise Return For Insurance Companies Form 63-23p

Amended Return

The abbreviation in the enumeration column is used to identify the

credit type on the credit manager schedule (in column a. in both Part 1

If you need to change a line item on your return, complete a new return

and Part 2).

with the corrected information and select “Amended Return.” Gen erally,

an amended return must be filed within three years of the date that

Part 2 of the Credit Manager Schedule reports any refundable credits

your original return was filed. By submitting the amended return, you

claimed in the current year. Certain credits are refundable only if specif-

are giving your consent for the Commissioner of Revenue to act upon

ically authorized or, in the case of the Film Credit, if the original recipient

your amended return after six months from the date of filing. If you

has not transferred the credit to another. Other conditions may apply

choose not to consent, you must do so in writing and attach it to this

depending on the terms applicable to the specific credit. Credits are

amended return. If you do not consent, any requested reduction in tax

identified separately. The amount in column (f) is the amount of the re-

will be deemed denied at the expiration of six months from the date of

fund requested, which may be 100% or 90% of the amount reported in

filing.

column (e).

If this is an amended Massachusetts return and it does not report

For more information and examples, see the Credit Manager Schedule

changes that result from the filing of a federal amended return or from

instructions.

a federal audit (for example, if the amended Massachusetts return is

Credit Recapture Schedule

reporting only a change in the apportionment calculation or an addi-

Certain Massachusetts tax credits are subject to recapture as specified

tional tax credit), check only the “amended return” box. If this is an

in the statute authorizing the credit (e.g., investment tax is subject to

amended return that includes changes you have reported on an

recapture under M.G.L. c 63, s 31A(e) if an asset for which the credit

amended federal return filed with the IRS for the same tax year, check

was taken is disposed of before the end of its useful life). Recapture

both the “amended return” box and the “federal amendment” box. If the

may also be triggered if the corporation no longer qualifies for the credit

amended Massachusetts return incorporates changes that are the result

(as when a manufacturing corporation ceases to qualify as such or a

of an IRS audit, check both the “amended return” box and the “federal

corporation’s status as a Life Sciences Company is terminated as dis-

audit” box; attach a complete copy of the federal audit report and sup-

cussed in TIR 13-6).

porting schedules.

If a recapture calculation is required, the amount of the credit allowed

If you are disputing an assessment resulting from an audit, or are re-

is redetermined and the reduction in the amount of credit allowable is

questing an abatement of penalties, do not file an amended return.

recaptured to the extent the credit was taken or used in a prior year.

Rather, you must file a Form ABT, Application for Abatement. Visit

See DOR Directive 89-7. Taxpayers who have a recapture calculation

mass.gov/dor/amend for additional information about filing an amended

must complete this schedule whether or not a recapture tax is deter-

return, or filing an application for abatement.

mined to be due.

Credit Manager Schedule

The Credit Recapture Schedule lists each credit for which a recapture

The Credit Manager Schedule reports in Part 1 the taxpayer’s credits

calculation must be made. For credits tracked by certificate numbers

available (including credits carried over from prior years) and the credits

that must be reported on the return to claim the credit, enter each cer-

taken. Credits are shown in a table format and may be listed in any

tificate number and the associated credits separately. For credits not

order. Taxpayers with more than one credit available may choose how

tracked by certificate number, enter credits separately by type and the

much of each credit to take in the current year. A taxpayer participating

year to which they relate. List only those credits and certificate numbers

in a combined report and allowing other members of the combined

or tax years for which a reduction in the credit is being calculated.

group to use its credits as allowed in 830 CMR 63.32B.2(9), also re-

ports the amount or each credit shared on this schedule.

For more information and examples, see the Credit Recapture Schedule

example.

Some credits are identified on the credit manager schedule by a cer-

tificate number. The certificate number for the credit is assigned by

Are There Special Tax Credits

the issuing agency (which may be the Department of Revenue) and

must always be reported to claim the credit. A taxpayer with multiple

Available In Massachusetts?

certificates for the same type of credit will enter each separately, with

the available (unused) balance associated with that certificate in col-

Yes. Massachusetts offers several special credits to corporations.

umn (e) and the amount of the credit used in the current year in col-

Under M.G.L. Ch. 63, sec. 32C, a corporation’s credits may not offset

umn (f). Taxpayer’s claiming the EDIP Credit for a Certified Jobs Cre-

more than 50% of its excise. Any credits not utilized as a result of this

ation Project must enter a certificate number but are only required to

pro vision may be carried over for an unlimited number of years. This

complete the header section of schedule EDIP.

provision does not apply to the Research Credit, the Harbor Mainte -

Some credits are identified by the period end date which refers to the

nance Tax Credit, Low-Income Housing Credit, Historic Rehabilitation

period in which the credit originated. This may be the current taxable

Credit, the Film Incentive Credit or the Medical Device Credit.

year or a prior year if the credit is being carried forward from a prior

Investment Tax Credit

year. If the period of origin is the current year, a schedule detailing the

calculation of the amount of credit must be enclosed with the return. If

Manufacturing corporations and corporations engaged primarily in re-

the period of origin is a prior year, only the amount carried over to and

search and development, agriculture or commercial fishing are al lowed

available in the current year is shown in column (e) and no calculation

a credit of 3% of the cost of depreciable real and tangible property. Such

schedule is required.

property must have a useful life of four years or more. The property must

be used and located in Massachusetts on the last day of the taxable

If, by operation of M.G.L. c. 63, s. 32C or another provision of law, a

year. A corporation cannot take the credit on property which it leases

credit normally identified by period of origin is eligible for indefinite car-

to another. A corporation can take the credit on property which it leases

ryover, the credit should be reported as “non-expiring”; the taxpayer is

from another (for property leased and placed in service on or after July

not required to identify the period of origin on the credit manager sched-

1, 1994). Generally, eligible corporate lessees making qual ifying lease-

ule. (Non-expiring credits were formerly referred to as “unlimited.”)

hold improvements may claim the credit.

Instructions For Massachusetts Premium Excise Return For Insurance Companies Form 63-23p - 2016 Page 4

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