Form 63-23p Instructions (Page 3 of 5) in pdf

Less:

This credit is effective for tax years in which the aggregate cumulative

• premiums on direct policies written but not taken or canceled through

investment in the Property and Casualty Initiative reaches 100 million

default of payment; and

or the tax year 2004, whichever is later.

• premiums returned to policyholders on canceled policies of direct in-

Line 24: Credit for member insurers of the Massachusetts Life

surance, but without deduction or exclusion in any manner of reinsur-

and Health Insurance Guaranty Association. Enter 10% of the as-

ance ceded, dividends, commissions, expenses or losses.

sessment for each of five years following the year in which the as-

sessment was paid. If the sum of offsets exceeds $3,000,000, the

Line 7. If applicable and not previously reported on Schedule T, in-

excess may be carried forward and may be used in a year in which

clude the policy year amount of “Fair Plan” participation premiums in-

the $3,000,000 is not exceeded. If the total offsets exceed $3,000,000

curred with the Massachusetts Property Tax Insurance Underwriting

in a year, the Department of Revenue will assess each member with

Association and/or Crime Insurance Program.

an additional tax equal to the amount of the offset which exceeds

Line 9: Deduction. Enter the total of dividend deductions for pre-

$3,000,000 of such members pro rata share. If the total offsets do not

miums returned or credited to policyholders in Mass. as dividends on

exceed $3,000,000 in a year, the Department of Revenue will calculate

direct business from Schedule T of the NAIC Annual Statement.

each members’ pro rata share to determine the amount of refund due

each member and issue a refund to each member.

Line 12: Retaliatory tax. Use the back of Form 63-23P to calculate

your excise using the same method and rate used by the state in

Line 25: Economic Opportunity Area Credit. Enter the amount of

which you are incorporated and would be imposed on a like Mass-

Economic Opportunity Area credit claimed this year from Schedule

achusetts insurance company, or its agents, if doing business to the

EOAC, line 15. Enclose a completed Schedule EOAC with this return.

same extent. If the computation in the state of your incorporation is

For more information, contact the Massachusetts Office of Business De-

in every respect the same as your Massachusetts computation, a

velopment at One Ashburton Place, Room 2101, Boston, MA 02108.

statement to that effect should be made. Enter this amount in line 12.

Line 26: Economic Development Incentive Program Credit. Under

Retaliatory tax provisions are provided under M.G.L. Ch. 63, secs. 23

the provisions of the Economic Development Incentive Program

and 24A.

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

Line 21: Retaliatory surtax credit. A company that contributes its full

ance Coordination Council (EACC) may authorize taxpayers participat-

and proportionate share to the Property and Casualty Initiative may re-

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

ceive a credit against the premium tax equal to increasing percentages

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

of the retaliatory taxes paid during the preceding taxable year attribut-

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

able to the surtax. If the aggregate cumulative investment by domestic

must use Form EDIP, Refundable Economic Development Incentive

property and casualty companies in the Property and Casualty Initia-

Program Credit, to claim such credits. Taxpayers seeking to claim

tive reaches $100,000,000, the credit shall equal 100% of the retalia-

credits for projects certified prior to January 1, 2010 must use Sched-

tory taxes attributable to the surcharge. The amount of the credit is

ule EOAC. See TIR 10-01 for further information.

20% for the tax year beginning on or after January 1, 1999 or the first

Line 27: Low-Income Housing Credit. To claim the Low-Income

year in which a participating property and casualty company con-

Housing Credit, documentation must be enclosed with the return. For

tributes its full proportionate share. The amount of the credit is 40%

further information on this credit, contact the DHCD, Division of Private

for the tax year beginning on or after January 1, 2000 or the second

Housing, at (617) 727-7824.

year in which a participating property and casualty company contrib-

utes its full proportionate share. The amount of credit is 60% for the tax

Line 28: Historic Rehabilitation Credit. Effective for tax years begin-

year beginning on or after January 1, 2001 or the third year in which

ning on January 1, 2005 and ending on or before December 31, 2017,

the participating property and casualty company contributes its full pro-

taxpayers may be eligible for the Historic Rehabilitation Credit (HRC).

portionate share. The amount of credit is 80% for the tax year begin-

To claim this credit, a historic rehabilitation project must be complete

ning on or after January 1, 2002 or the fourth year in which the

and have been certified by the Massachusetts Historical Commission.

participating property and casualty company contributes its full propor-

Unused portions of the credit may be carried forward for a maximum

tionate share. The amount of the credit is 100% for the year beginning

of 5 years. This credit may be transferred or sold to another taxpayer.

on or after January 1, 2003 or the fifth year in which a participating

The HRC is not subject to the 50% limitation rule for corporate tax-

property and casualty company contributes its full proportionate share.

payers. If the taxpayer disposes of the property generating the HRC,

a portion of the credit may be subject to recapture. For further infor-

The total amount of the credit shall not exceed $8,000,000 for all do-

mation, see Regulation 630 CMR63.38.1, Massachusetts Historic Re-

mestic property and casualty companies. The amount of each prop-

habilitation Tax Credit.

erty and casualty company’s credit shall be limited to that company’s

credit share. A company seeking the credit must provide the Commis-

Line 29: Film Incentive Credit. For tax years beginning on or after

sioner of Revenue with the amount of its retaliatory taxes attributable

January 1, 2006 and before January 1, 2023, motion picture compa-

to the surtax and payable for the preceding taxable year, before appli-

nies may claim a credit equal to 20% of the total qualifying aggregate

cation for the credit, by December 31 of the current taxable year. The

payroll for employing persons within the Commonwealth in connection

commissioner of revenue shall be responsible for reporting to each

with the filming and production of a motion picture, and a credit equal

company its credit share amount by February fifteenth of the current

to 25% of their Massachusetts productions expenses. The credits are

taxable year. A certificate of contribution issued by the Property and

transferable. For further information, see TIR 06-1.

Casualty Initiative must accompany the return.

Line 30: Medical Device Credit. For tax years beginning on or after

Line 22: Initiative credit. A company shall be allowed a credit against

January 1, 2006, medical device companies that develop or manufac-

the premium tax equal to 1

% (.015) of such company’s total capital

⁄

ture medical devices in Massachusetts can claim a credit equal to

contribution in excess of their full proportionate share which shall mean

100% of the user fees paid to the U. S. Food and Drug Administration.

an investment in the Massachusetts Property and Casualty Insurance

The credit is transferable. For more information, see TIR 06-22.

Company Community and Economic Development Initiative.

Form 63-23p Instructions Page 3

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