Form P.s.1 Instructions - 2012 (Page 2 of 5) in pdf

Registration Information

ment percentage. If all income is derived from business conducted in

Massachusetts, enter 100% in line 15.

If your corporation has undergone a federal audit for some prior year,

you must report any changes to Massachusetts on Form CA-6. You

Line 18. If the corporation is required to recapture any amount of pre-

must report any federal audit changes within three months after the

viously claimed EOA Credit, Low-Income Housing Credit, Brownfields

final determination of the correct taxable income by the IRS. Other-

Credit, Life Science Credit or Historic Rehabilitation Credit, complete

wise, you will be subject to a penalty. If the federal change results in

Schedule H-2 and enter the result in line 18 of the return. Current year

less tax due to Massachusetts than was assessed or paid, you may

credits can then be used to offset the total excise due which will in-

apply for abatement under the federal change rules within one year of

clude the recapture amount.

the final federal determination. Answering “yes” to this question does

Also include in line 18 the tax amount representing an interest charge

not relieve the utility corporation from this filing obligation.

on the deferred tax on gain from certain installment sales with a sales

If the utility corporation is requesting alternative apportionment under

price over $150,000 if you are not a dealer and the aggregate face

Chapter 63, sec. 42, check the box and enclose Form AA-1. Sched-

amount of installment obligations arising during the tax year and

ule O must also be completed and the tax paid according to the

outstanding as of the close of the tax year exceeds $5 million. For

statutory three-factor formula. However, alternative treatment may be

more information see M.G.L. Ch. 62C, sec. 32A(a) and I.R.C. sec.

requested and a refund will be issued if such treatment is granted by

453A (a)–(c).

the Commissioner. For further information, see MGL Chapter 63, sec.

Also include in the total the tax amount representing interest on the

42 or 830 CMR 63.42.1.

deferred gain from the installment sale of timeshares and residential

Excise Tax Calculation

lots, if the sale meets one of the following criteria:1) the sale is of a

Line 1. Enter the utility corporation’s federal taxable income before

timeshare right for 6 weeks or less; 2) the sale is for the recreational

net operating loss deduction and special deductions, from U.S. Form

use of specified campgrounds; or 3) the sale is for a residential lot and

1120, line 28.

neither the dealer nor someone related to the dealer is obligated to

make any improvements on the lot. For more information see M.G.L.

Line 2. Enter all interest received on state and municipal obligations

Ch. 62C, sec. 32A (b) and I.R.C. sec. 453(l)(2)(B).

not reported in federal net income.

Line 20: Economic Opportunity Area Credit. Enter the amount

Line 3. Massachusetts does not allow a deduction for state, local and

of Economic Opportunity Area Credit claimed this year from Sched-

foreign income, franchise, excise or capital stock taxes. Any such

taxes which have been deducted from federal net income should be

ule EOAC, line 15. Enclose a completed Schedule EOAC to this re-

turn. For more information, contact the Massachusetts Office of Busi-

entered in line 3 and added back into income.

ness Development at One Ashburton Place, Room 2101, Boston,

Line 4. Enter that portion of net capital loss carryover from U.S.

MA 02108.

Schedule D, Part 1, line 4 used to reduce your capital gain. Enclose a

Line 21: Economic Development Incentive Credit. Under the pro-

copy of U.S. Schedule D.

visions of the Economic Development Incentive Program (EDIP) es-

Line 5. For Massachusetts tax purposes, for taxable years ending

tablished pursuant to M.G.L. Ch. 23A, the Economic Assistance Co-

after September 10, 2001, depreciation is to be claimed on all assets,

ordination Council (EACC) may authorize taxpayers participating in

regardless of when they are paced in service. Use the method used

certified projects to claim tax credits under M.G.L. Ch. 62 sec. 6(g) and

for federal income tax purposes prior to the enactment of section

M.G.L. Ch. 63 sec. 38N. Taxpayers authorized by the EACC to claim

168(k). For more information, see TIR 02-11 and TIR 03-25.

tax credits for projects certified on or after January 1, 2010 must use

Line 6. Massachusetts law requires that a taxpayer add back to net

Form EDIP, Refundable Economic Development Incentive Program

income certain interest or intangible expenses and costs, including

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

losses incurred in connection with factoring or discounting transac-

projects certified prior to January 1, 2010 must use Schedule EOAC.

tions. This add back is mandatory, with certain exceptions based

See TIR 10-01 for further information.

generally upon showing by clear and convincing evidence that a partic-

Line 22: Low-Income Housing Credit. To claim the Low-Income

ular add back would be unreasonable. To claim an exception for this

Housing credit, enclose documentation with the return. For further in-

new requirement, file Schedule ABI, Exceptions to the Add Back of In-

formation on this credit, contact the DHCD, Division of Private Hous-

terest Expenses and/or Schedule ABIE, Exceptions to the Add Back

ing, at (617) 727-7824.

of Intangible Expenses. For more information, see TIR 03-19.

Line 23: Historic Rehabilitation Credit. Effective for tax years begin-

Line 7. Effective January 1, 2005, Massachusetts has decoupled

ning on or after January 1, 2005 and ending on or before December

from the American Jobs Creation Action of 2004, Public Law 108-357.

31, 2017, taxpayers may be eligible for the Historic Rehabilitation

For corporate excise purposes, the definition of net income does not

Credit (HRC). To claim this credit, a historic rehabilitation project must

include the new federal production activity deduction. See TIR 05-5

be complete and have been certified by the Massachusetts Historical

for further information.

Commission. Unused portions of the credit may be carried forward for

Line 8. Enter all gross income from all other sources not included in

a maximum of five years. This credit may be transferred or sold to

lines 1 or 2 above.

another taxpayer. The HRC is not subject to the 50% limitation rule

for corporate taxpayers. If the taxpayer disposes of the property gen-

Line 10. From Schedule N enter the dividends received from other

erating the HRC, a portion of the credit may be subject to recapture.

utility corporations of which your company owns 80% or more.

For further information, see 830 CMR 63.38R.1, Massachusetts His-

Line 11. Enter the total costs of renovating an abandoned building in

toric Rehabilitation Tax Credit.

an Economic Opportunity Area. Multiply this amount by .10 and enter

Line 24: Film Incentive Credit. For tax years beginning on or after

the result here. For further information, contact the Massachusetts

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

Office of Business Development at One Ashburton Place, Room 2101,

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

Boston, MA 02108.

payroll for employing persons within the Commonwealth in connection

Line 15. If the utility corporation conducts business activities in another

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

state sufficient to give that state the jurisdiction to tax the corporation,

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

Schedule O should be completed in order to determine the apportion-

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

Form P.s.1 Instructions - 2012 Page 2

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