Form M-990t Instructions - 2012 (Page 3 of 4) in pdf

Line 30: Film Incentive Credit. For tax years beginning on or after

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

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

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

nies may claim a credit equal to 25% of the total qualifying aggregate

for certified life sciences companies pursuant to the Life Sciences Tax

Incentive Program, to provide qualifying companies with a means to

payroll for employing persons within the Commonwealth in connection

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

obtain a research credit for certain expenditures not qualifying for the

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

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

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

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

credit is generally calculated in the same manner as the research

Line 31: Medical Device Credit. For tax years beginning on or after

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

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

tures which form the basis for the calculation in new section 38W differ

ture medical devices in Massachusetts can claim a credit equal to

from those of section 38M in that they can qualify when the activities

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

are performed both inside and outside of the Commonwealth, to the

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

extent they relate to legally mandated clinical trial activities. The new

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

life sciences research credit is not refundable. For further information,

see TIR 08-23.

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

Credit (ITC) may be available to taxpayers.

Line 37: Voluntary Contribution for Endangered Wildlife Conser-

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

vation. Any corporation that wishes to contribute any amount to the

Natural Heritage and Endangered Species Fund may do so on this

to the extent authorized pursuant to the Life Sciences Tax Incentive

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

form. This amount is added to the excise due. It increases the amount

constructed or erected during the taxable year and used exclusively in

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

the Commonwealth.

The Natural Heritage and Endangered Species Fund is administered

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

by the Department of Fisheries, Wildlife and Law Enforcement to pro-

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

vide for conservation programs for rare, endangered and nongame

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

wildlife and plants in the Commonwealth.

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

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

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

Life sciences companies or persons also qualifying for the Economic

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

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

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

holding payment on behalf of the taxpayer.

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

Line 43: Refundable Film Credit. Motion picture production compa-

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

nies qualify to elect a refundable film credit if they have not transferred

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

or carried forward a portion of the film credit for the production/certifi-

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

cate number to be refunded. Transferees of the film credit do not qual-

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

ify for the refundable film credit. If an election to refund the film credit

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

for a production/certificate number is made, the entire film credit re-

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

maining after reducing tax liability and other credits will be refunded

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

at 90%. A motion picture production company that elects to claim a

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

refund of the film credit is not permitted to seek a partial refund and a

partial transfer or carryover of the credit. However, the refund can be

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

further information, see TIR 08-23.

applied as an estimated payment for the subsequent tax year.

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

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

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

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

allowed a refundable tax credit based on the amount of milk produced

and sold. The dairy farmer tax credit as originally enacted was 90%

the U. S. Food and Drug Administration (U.S.F.D.A.) upon submission

of an application to manufacture a human drug in the Commonwealth.

refundable. Under recent legislation, the dairy farmer tax credit is now

100% refundable.

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

Line 45: Refundable Life Science Credit There are two different

to the extent authorized pursuant to the Life Sciences Tax Incentive

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

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

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

proval of the Secretary of Administration and Finance, may authorize

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

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

manufacture the drug is approved by the U.S.F.D.A.

a future year.

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

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

opment costs for the drug must have been incurred in Massachusetts.

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

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

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

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

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

tive Program, 90% of the balance of credit remaining is refundable.

certified project.

The deduction otherwise allowable for user fees qualifying for the

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

Form M-990t Instructions - 2012 Page 3

Related Articles

Related forms

Related Categories