Form 63-23p Instructions (Page 4 of 5) in pdf

Line 31: Brownfields Credit. Recent legislation extends the Browns-

obtain a research credit for certain expenditures not qualifying for the

field credit to nonprofit organizations, extends the time frame for eligibil-

existing research credit under c. 63, § 38M. St. 2008, c. 130, §§ 30 and

ity for the credit, and permits the credit to be bought, sold or assigned.

53, codified at G.L. c. 63, § 38W. Under this new provision, the credit is

generally calculated in the same manner as the research credit under

Under prior law, net response and removal costs incurred by a tax-

payer between August 1, 1998 and August 5, 2005, were eligible for

section 38M. However, the qualified research expenditures which form

the basis for the calculation in new section 38W differ from those of

the credit provided that the taxpayer commenced and diligently pur-

sued an environmental response action before August 5, 2005. As a

section 38M in that they can qualify when the activities are performed

result of the recent legislation, the environmental response action com-

both inside and outside of the Commonwealth, to the extent they relate

mencement cut-off date is changed from August 5, 2005 to August 5,

to legally mandated clinical trial activities. The new life sciences re-

2013, and the time for incurring eligible costs that qualify for the credit

search credit is not refundable. For further information, see TIR 08-23.

is extended to January 1, 2014. For further information, see TIR 06-16.

Line 37: Voluntary contribution to the Nongame Wildlife Fund.

Any corporation that wishes to contribute any amount to the Natural

Line 32: Life Science Company Investment Tax Credit. For taxable

years beginning on or after January 1, 2009, a new Investment Tax

Heritage and Endangered Species Fund may do so on this form. This

Credit (ITC) may be available to taxpayers.

amount is added to the excise due. It increases the amount of the cor-

poration’s payment or reduces the amount of its refund.

This credit, which is available to certified life sciences companies only

to the extent authorized pursuant to the Life Sciences Tax Incentive

The Natural Heritage and Endangered Species Fund is administered

Program, is equal to 10% of the cost of qualifying property acquired,

by the Department of Fisheries, Wildlife and Environmental Law En-

forcement to provide for conservation programs for rare, endangered

constructed or erected during the taxable year and used exclusively

in the Commonwealth.

and nongame wildlife and plants in the Commonwealth.

The refundable ITC can apply to purchases made on or after January

Line 42: Pass-through Entity Withholding. Enter the amount of any

1, 2009 even if a construction project started before that date. The

withholding tax from pass-through entities. Be sure to include the tax-

scope of qualifying property for purposes of the new credit is the same

payer identification number of the person or entity submitting the with-

as that provided by the existing ITC under M.G.L. Ch. 63, sec. 31A.

holding payment on behalf of the taxpayer.

Life sciences companies or persons also qualifying for the Economic

Line 43: Refundable Film Credit. Schedule RFC, Refundable Film

Credit, is used by motion picture production companies to elect to claim

Opportunity Area Credit (EOAC) for the same property may only take

such EOAC to the extent of an additional 2% of the cost of the qualify-

a refundable film credit if they have not transferred or carried forward a

ing property. Corporations taking these credits are not allowed to take

portion of the film credit for the production. Transferees of the film credit

the ITC under M.G.L. Ch. 63, sec. 31A or the Low-Income Housing

do not qualify for the refundable film credit. If an election to refund the

Credit under M.G.L. Ch. 63, sec. 31H for the same qualifying property.

film credit for a production is made, the entire film credit remaining after

reducing the current year tax liability will be refunded at 90%. The pro-

If a life sciences ITC exceeds the tax otherwise due as applicable,

duction company is not allowed to partially refund and partially trans-

90% of the balance of such credit may, at the option of the taxpayer

fer or carryover over any portion of the credit to the next tax year.

and to the extent authorized pursuant to the Life Sciences Tax Incen-

Line 44: Refundable Dairy Credit. A taxpayer who holds a certificate

tive Program, be refundable to the taxpayer for the tax year in which

the qualified property giving rise to such credit is placed in service. If

of registration as a dairy farmer pursuant to M.G.L. Ch. 94, sec. 16A

such refund is elected by the taxpayer, then the carryover provisions

is allowed a refundable tax credit based on the amount of milk pro-

for this credit that would otherwise apply shall not be available. For fur-

duced and sold. The dairy farmer tax credit as originally enacted was

ther information, see TIR 08-23.

90% refundable. Under recent legislation, the dairy farmer tax credit

is now 100% refundable.

Line 33: Life Science Company FDA User Fees Credit. For taxable

Line 45: Refundable Life Science Credit. There are two different

years beginning on or after January 1, 2009, a new credit may be

available to taxpayers for user fees paid on or after June 16, 2008 to

credits which the Massachusetts Life Sciences Center, with the ap-

the U.S. Food and Drug Administration (USFDA) upon submission of

proval of the Secretary of Administration and Finance, may authorize

an application to manufacture a human drug in the Commonwealth.

a taxpayer to have refunded in lieu of carrying forward such credit to

a future year.

This credit, which is available to certified life sciences companies only

to the extent authorized pursuant to the Life Sciences Tax Incentive

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

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

Program, is equal to 100% of the user fees actually paid by the tax-

payer, as specified in the certification, and may be claimed in the tax-

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

63, sec. 38N if property for which the 38U credit is granted is used in

able year in which the application for licensure of an establishment to

manufacture the drug is approved by the USFDA.

a certified project.

To be eligible for the credit, more than 50% of the research and de-

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

velopment costs for the drug must have been incurred in Massachu-

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

setts. Taxpayers may use the FDA user fees credit to reduce their tax

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

to zero. To the extent authorized pursuant to the Life Sciences Tax In-

Credit, is used by taxpayers to claim the refund.

centive Program, 90% of the balance of credit remaining is refund-

Line 46: Refundable Life Science Jobs Credit. Effective for tax years

able. The deduction otherwise allowable for user fees qualifying for

beginning on or after January 1, 2011, a new tax incentive has been

the credit is disallowed. For further information, see TIR 08-23.

added to the Life Sciences Tax Incentive Program in the form of a re-

Line 34: Life Sciences Company Research Credit. For taxable years

fundable jobs credit. A taxpayer, to the extent authorized by the Life

beginning on or after January 1, 2009, a new credit may be available

Sciences Tax Incentive Program, may be allowed a refundable jobs

for certified life sciences companies pursuant to the Life Sciences Tax

credit against the tax liability imposed under G.L. c. 62, the personal in-

come tax, or G.L. c. 63, the corporate excise. A taxpayer claiming a life

Incentive Program, to provide qualifying companies with a means to

Form 63-23p Instructions Page 4

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