Instructions For Form 355 - Massachusetts Corporation Excise Return

General Information

Major 2016

the tax due may be carried forward for up to five

The following corporations are not obligated to file:

years. For further information, see TIR 16-15.

corporations organized under the provision of

Tax Law Changes

M.G.L. Ch. 157, sec. 10.

Historic Rehabilitation Tax Credit

Effective August 10, 2016, the historic rehabilita-

Which Form

Consent to Extend the Time to Act

tion tax credit has been modified to allow the

on an Amended Return Treated as

Massachusetts Historical Commission to, subject

Should Be Filed?

an Abatement Application

to certain criteria, transfer the historic rehabilita-

tion tax credit to corporate excise taxpayers that

The Department has established a consent proc -

Businesses which are incorporated under the laws

acquire a qualified historic structure. For multi-

ess that will protect a taxpayer’s appeal rights in

of the Commonwealth or businesses doing busi-

phased projects, the Massachusetts Historical

instances where a taxpayer’s amended return is

ness in Massachusetts but incorporated elsewhere

Commission may transfer historic rehabilitation

treated by the Department as an abatement appli-

should file Form 355.

tax credit awards for any phase that meets the cri-

cation. In such instances, the Department will con-

teria. For further information, see TIR 16-15.

sider the taxpayer’s act of filing an amended return,

The Department of Revenue also has the follow-

either electronically or on paper, to constitute the

ing tax forms to meet the unique filing needs

Certified Housing Development Tax

taxpayer’s written consent to grant the Commis-

of combined filers, security corporations and S

Credit

sioner additional time to act on an amended return

corporations.

treated as an abatement application. For further in -

Effective January 1, 2017, the certified housing

Corporations which are participating in a combined

formation, see TIR 16-11.

development tax credit allows corporate excise

report of their net income to Massachusetts must

taxpayers to claim 25% of qualified project expen-

file Form 355U. Beginning in 2011, most com-

Economic Development Incentive

ditures as a credit. The credit may also be carried

bined report filers will also pay the non-income

Program Tax Credit

forward for up to 10 years. For further informa-

measure of excise when filing the 355U; combined

tion, see TIR 16-15.

For projects certified after January 1, 2017, the eco-

report filers are not required to also file a Form

nomic development incentive program tax credit is

355 unless their taxable year ends at a different

Who Must File

no longer calculated based on the cost of property

time than the taxable year of the combined report.

that qualifies for the investment tax credit allowed

See the instructions for the Registration Section,

under G.L. c. 63, § 31A and is instead determined

and Pay Corporate

question number 4 for further information.

by the Economic Assistance Coordinating Council

Corporations engaged exclusively in buying, sell-

based on factors set out in G.L. c. 23A, § 3D. In

Excise?

ing, dealing in or holding securities on their own

addition, limitations on the maximum amount of

behalf and not as brokers must file Form 355SC.

the credit awarded to particular types of certified

The purpose of the corporate excise is to require

projects have been eliminated, the credit is only

S corporations which are incorporated under the

payment for the right granted by the laws of the

subject to recapture if the Economic Assistance

laws of the Commonwealth or S corporations doing

Commonwealth to exist as a corporation and for

Coordinating Council revokes the certification of a

business in Massachusetts but incorporated else -

the enjoyment under the protection of the Com-

project, and the credit may be designated as re-

where should file Form 355S.

monwealth’s laws of the powers, rights, privileges

fundable in relation to any certified project. For

and immunities derived by reason of the corporate

If a corporation files Form 355, 355U, 355S or

further information, see TIR 16-15.

form of existence and operation. The cor porate ex -

355SC, the return must be submitted electronically

cise is due and payable when any of the following

provided that gross revenues from all sources are

Community Investment Tax Credit

conditions are met:

$100,000 or greater. Failure to submit the return

Effective August 10, 2016, the community invest-

electronically may result in a penalty of $100. For

ment tax credit has been modified. A community

the corporation actually does business within

further information on electronic filing require-

partner may now claim a subsequent community

the Commonwealth;

ments, see TIRs 04-30, 05-22 and 16-9.

investment tax credit if the Department of Hous-

the corporation exercises its charter within the

ing and Community Development determines that

355SBC is now obsolete. Form 355SBC was an

Commonwealth;

the community partner has made satisfactory prog -

option for smaller corporations meeting the follow-

the corporation owns or uses any part of its

ress towards utilizing any prior allocation it has

ing criteria: gross receipts or sales under $100,000

capital, plant or other property in the Common-

received. For further information, see TIR 16-15.

and total income under $100,000; 100% of net

wealth; or

income taxable in Massachusetts and not subject

Low-Income Housing Tax Credit

to corporate tax in another state; not a DISC, an S

the corporation owns and/or rents real or tan-

Effective January 1, 2017, the low-income hous-

corporation or a Massachusetts Security Corpora-

gible personal property as a lessor in Massachu-

ing tax credit has been expanded to also provide a

tion. These small businesses now can file their cor-

setts even without having a usual place of busi-

non-refundable tax credit for corporate excise

porate excise returns online for free through DOR’s

ness here.

taxpayers that donate real or personal property to

Mass TaxConnect system at mass.gov/masstax

Corporations which must file and pay corporate ex -

certain non-profit entities for use in purchasing,

connect. Taxpayers who do not wish to file online

cise include any corporation which:

constructing, or rehabilitating a qualified Mass-

can file the longer Form 355.

is organized under, or subject to, Chapters 156,

achusetts project. This credit is generally limited

Note: Under Massachusetts law, all corporations

156A, 156B or 180 of Massachusetts General

to 50% of the amount of the donation. The credit

registered in the Commonwealth are required to

Laws (M.G.L.); or

must be claimed in the year that the qualifying

file an Annual Report form with the Secretary of

donation is made and credit amounts that exceed

has privileges, powers, rights or immunities not

State within a limited time after the close of their

possessed by individuals or partnerships.

fiscal year. Annual Report forms and instructions

Instructions For Form 355 - Massachusetts Corporation Excise Return - 2016 Page 3

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