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

2008, c. 130, §§ 30 and 53, codified at G.L. c. 63, § 38W. Under this

by the Life Sciences Tax Incentive Program, may be allowed a refund-

new provision, the credit is generally calculated in the same manner

able jobs credit against the tax liability imposed under G.L. c. 62, the

as the research credit under section 38M. However, the qualified re-

personal income tax, or G.L. c. 63, the corporate excise. A taxpayer

search expenditures which form the basis for the calculation in new

claiming a life sciences refundable jobs credit must commit to the cre-

section 38W differ from those of section 38M in that they can qualify

ation of a minimum of 50 net new permanent full-time positions in Mas-

when the activities are performed both inside and outside of the

sachusetts.

Commonwealth, to the extent they relate to legally mandated clinical

The amount of life sciences jobs credit allowed to a taxpayer will be de-

trial activities.

termined by the Massachusetts Life Sciences Center in consultation with

The credit can reduce the corporate excise to the minimum excise of

the Department of Revenue.

$456 and may be carried forward for 15 years. Unlike the regular re-

If a life sciences jobs credit claimed by a taxpayer exceeds the tax oth-

search credit, as amended by the new subsection (j) of section 38M,

erwise due under the personal income tax or the corporate excise, as

described above, the new life sciences research credit under M.G.L.

applicable, 90% of the balance of such credit may, to the extent author-

Ch. 63, sec. 38W is not refundable.

ized by the life sciences tax incentive program, be refundable to the

For further information, see TIR 08-23. The amount of this credit must

taxpayer. Excess credit amounts shall not be carried forward to sub-

be entered on the Credit Manager Schedule.

sequent taxable years.

The refundable jobs credit is subject to all the requirements of G.L. c.

Refundable Film Credit

23I, including the requirements set out in TIR 08-23. The total dollar

Schedule RFC, Refundable Film Credit, is used by motion picture pro-

amount of the various life sciences tax incentives, including the refund-

duction companies to elect to claim a refundable film credit if they have

able jobs credits, for qualifying life sciences companies is subject to an

not transferred or carried forward a portion of the film credit for the pro-

annual cap of $25 million.

duction. Transferees of the film credit do not qualify for the refundable

The amount of refundable credit must be entered on the Credit Man-

film credit.

ager Schedule.

If an election to refund the film credit for a production is made, the entire

Refundable Economic Development

film credit remaining after reducing the current year tax liability will be

refunded at 90%. The production company is not allowed to partially

Incentive Credit

refund and partially transfer or carryover over any portion of the credit

Under the provisions of the Economic Development Incentive Program

to the next tax year.

(EDIP) established pursuant to M.G.L. Ch. 23A, the Economic Assis-

The amount of refundable credit must be entered on the Credit Man-

tance Coordination Council (EACC) may authorize taxpayers participat-

ager Schedule.

ing in certified projects to claim tax credits under M.G.L. Ch. 62 sec.

6(g) and M.G.L. Ch. 63 sec. 38N. Taxpayers authorized by the EACC

Refundable Dairy Credit

to claim tax credits for projects certified on or after January 1, 2010

A taxpayer who holds a certificate of registration as a dairy farmer pur-

must use Form EDIP, Refundable Economic Development Incentive

suant to M.G.L. Ch. 94, sec. 16A is allowed a refundable tax credit based

Program Credit, to claim such credits. Taxpayers seek ing to claim cred-

on the amount of milk produced and sold. The dairy farmer tax credit

its for projects certified prior to January 1, 2010 must use Schedule

as originally enacted was 90% refundable. Under recent legislation,

EOAC. See TIR 10-01 for further information.

the dairy farmer tax credit is now 100% refundable.

The amount of refundable credit must be entered on the Credit Man-

ager Schedule.

Conservation Land Tax Credit

Refundable Life Science Credit

Effective for tax years beginning on or after January 1, 2011, a credit

There are different credits which the Massachusetts Life Sciences Cen-

is allowed for qualified donations of certified land to a public or private

ter, with the approval of the Secretary of Administration and Finance,

conservation agency. The credit is equal to 50% of the fair market value

may authorize a taxpayer to have refunded in lieu of carrying forward

of the qualified donation. The amount of the credit that may be claimed

such credit to a future year.

by a taxpayer for each qualified donation cannot exceed $75,000. The

credit is refundable but not transfer able. The certification process is

A taxpayer may apply for a refund of 90% of the unused Investment

conducted by the Executive Office of Energy and Environmental Affairs

Tax Credit granted under M.G.L. Ch. 63, sec. 38U or the additional

(EEA). EEA has promulgated a regulation, 301 CMR 14.00, entitled

credit on the same property that may be granted under M.G.L. Ch. 63,

Conservation Land Tax Credit, which sets forth criteria for authorizing

sec. 38N if property for which the 38U credit is granted is used in a cer-

and certifying the credit. See also, 830 CMR 62.6.4, entitled Conser-

tified project.

vation Land Tax Credit, promulgated by DOR to explain the calculation

A taxpayer may apply for a refund of 90% of the un used FDA User Fee

of the allowable credit.

Credit granted under M.G.L. Ch. 63, sec. 38M, including credits carried

The amount of this credit must be entered on the Credit Manager

over from prior years. Schedule RLC, Refundable Life Science Credit,

Schedule.

is used by taxpayers to claim the refund.

The amount of refundable credit must be entered on the Credit Man-

Employer Wellness Program Tax Credit

ager Schedule.

Effective for tax years beginning on or after January 1, 2013, a Massa-

Refundable Life Science Jobs Credit

chusetts business that employs 200 or fewer workers may qualify for

a tax credit for up to 25% of the cost of implementing a “certified well-

Effective for tax years beginning on or after January 1, 2011, a new tax

ness program” for its employees. A taxpayer seeking to claim the credit

incentive has been added to the Life Sciences Tax Incentive Program in

must apply to the Department of Public Health (DPH) for certification

the form of a refundable jobs credit. A taxpayer, to the extent authorized

Instructions For Massachusetts Premium Excise Return For Insurance Companies Form 63-23p - 2016 Page 7

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