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filed return. (The Department may also require use of an alternative

Credit Recapture

method of apportionment without the taxpayer’s application.) The

If the corporation is required to recapture any amount of previously

taxpayer should use the statutory method of apportionment in calcu-

claimed EOA Credit, Historic Rehabilitation Credit, Brownfields Credit,

lating the excise due on Form 63 FI. If an alternative method of ap-

Life Science Credit or Low-Income Housing Credit, complete Sched-

portionment of net income is approved by the Department, a refund

ule H-2 and enter the result in line 6 of the return. Current year cred-

of any overpayment, with interest, if due, will be made. In process-

its can then be used to offset the total excise due which will include

ing taxpayer requests for alternative apportionment, the Department

the recapture amount.

will generally follow the procedures in Regulation 830 CMR 63.42.1 to

Economic Opportunity Area Credit and

the extent that they are not inconsistent with other provisions of MGL

Ch. 63, as amended, pertaining to financial institutions. Note: Be sure

Abandoned Building Renovation Deduction

to check the box of the registration section if requesting alternative

Financial institutions may qualify for the Economic Opportunity Area

apportionment. A request for an alternative method of apportionment

Credit or the Abandoned Building Renovation Deduction. For further

must be made for each taxable period.

information, see Schedule EOAC or contact the Massachusetts Of-

fice of Business Development, One Ashburton Place, Room 2101,

When Are Returns Due?

Boston, MA 02108.

Financial institution excise returns, together with payment in full of

any tax due, must be filed on or before the 15th day of the third

Refundable Economic Development

month after the close of the taxable year, calendar or fiscal.

Incentive Credit

An extension of time for filing returns will be granted for reasonable

Under the provisions of the Economic Development Incentive Pro-

cause upon request. To request an extension, file Form 355-7004

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

Misc., on or before the normal due date of the return and pay in full

Assistance Coordination Council (EACC) may authorize taxpayers

the estimated tax due.

participating in certified projects to claim tax credits under M.G.L.

Ch. 62 sec. 6(g) and M.G.L. Ch. 63 sec. 38N. Taxpayers authorized

Note: An extension of time to file is not valid if the financial institu-

by the EACC to claim tax credits for projects certified on or after

tion fails to pay at least the minimum tax of $456, or 50% of the total

January 1, 2010 must use Form EDIP, Refundable Economic De-

tax liability, whichever is greater, through estimated payments or with

velopment Incentive Program Credit, to claim such credits. Tax-

Form 355-7004 Misc.

payers seeking to claim credits for projects certified prior to January

Any tax not paid on or before the due date, without regard to the ex-

1, 2010 must use Schedule EOAC. See TIR 10-01 for further infor-

tension, will be subject to an interest charge.

mation.

Should the Financial Institution

Low-Income Housing Credit

Be Making Estimated Tax Payments?

This credit is administered through the Massachusetts Department

All financial institutions which reasonably estimate their excise to be

of Housing and Community Development (DHCD). The low-income

in excess of $1,000 for the taxable year are required to make esti-

housing credit is available to taxpayers that claim a federal credit for

mated tax payments to the Commonwealth. Payments must be made

the construction or development of low-income housing. The state

in quarterly installments of 40%, 25%, 25% and 10% of the esti-

credit is taken over five years, and the amount of credit a taxpayer

mated annual tax liability.

may claim for a qualified Massachusetts project is allocated by the

DHCD and is based on a total pool of money awarded to the Com-

Note: New corporations in their first full taxable year with less than 10

monwealth. In order to claim the credit, documentation must be

employees have different estimated payment percentages — 30%,

enclosed with the return.

25%, 25% and 20% respectively.

For further information regarding this credit, contact the Department

Any corporation having $1 million or more of federal taxable income

of Housing and Community Development, Division of Private Hous-

in any of its three preceding taxable years (as defined in Section

ing, at (617) 727-7824.

6655(g) of the IRC) may only use its prior year’s tax liability to cal-

culate its first quarterly estimated tax payment. Any reduction in the

Historic Rehabilitation Credit

first installment payment that results from using this method must

Effective for tax years beginning on or after January 1, 2005 and end-

be added to the second installment payment

ing on or before December 31, 2017, taxpayers may be eligible for

A company that claims the exception to the underpayment penalty of

the Historic Rehabilitation Credit (HRC). To claim this credit, a historic

equaling the prior year’s tax liability must provide federal tax returns

rehabilitation project must be complete and have been certified by

(front page only) for the three preceding taxable years to verify that

the Massachusetts Historical Commission. Unused portions of the

federal taxable income is less than $1 million.

credit may be carried forward for a maximum of 5 years. This credit

may be transferred or sold to another taxpayer. The HRC is not sub-

Financial institutions which underpay or fail to pay their estimated

ject to the 50% limitation rule for corporate taxpayers. If the taxpayer

taxes may incur an additional charge on the amount of the under-

disposes of the property generating the HRC, a portion of the credit

payment for the period of the underpayment at the rate established

may be subject to recapture. For further information, see Regulation

under MGL Ch. 62C, sec. 32 (which is the rate the Department

830 CMR 63.38R.1: Massachusetts Historic Rehabilitation Tax Credit.

uses to calculate interest on underpayments and overpayments).

Form M-2220, Underpayment of Massachusetts Estimated Tax by

Film Incentive Credit

Corporations, is used to compute the additional charge.

For tax years beginning on or after January 1, 2006 and before Jan-

See Regulation 830 CMR 63B.2.2 for additional information about es-

uary 1, 2013, motion picture companies may claim a credit equal to

timated payments.

20% of the total qualifying aggregate payroll for employing persons

within the Commonwealth in connection with the filming and pro-

Instructions For Form 63 Fi - Massachusetts Financial Institution Excise Tax Return - 2012 Page 4

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