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duction of a motion picture, and a credit equal to 25% of their Mass-

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

achusetts productions expenses. The credits are transferable. For

to the extent authorized pursuant to the Life Sciences Tax Incentive

further information, see TIR 06-1.

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

Medical Device Credit

taxable year in which the application for licensure of an establish-

For tax years beginning on or after January 1, 2006, medical device

ment to manufacture the drug is approved by the USFDA.

companies that develop or manufacture medical devices in Mass-

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

achusetts can claim a credit equal to 100% of the user fees paid to

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

the U. S. Food and Drug Administration. The credit is transferable.

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

For more information, see TIR 06-22.

tax to zero. To the extent authorized pursuant to the Life Sciences

Tax Incentive Program, 90% of the balance of credit remaining is re-

Brownfields Credit

fundable. The deduction otherwise allowable for user fees qualifying

Recent legislation extends the Brownsfield credit to nonprofit organi-

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

zations, extends the time frame for eligibility for the credit, and per-

mits the credit to be bought, sold or assigned. Under prior law, net

Life Sciences Company Research Credit

response and removal costs incurred by a taxpayer between August

For taxable years beginning on or after January 1, 2009, a new credit

1, 1998 and August 5, 2005, were eligible for the credit provided

may be available for certified life sciences companies pursuant to the

that the taxpayer commenced and diligently pursued an environmen-

Life Sciences Tax Incentive Program, to provide qualifying companies

tal response action before August 5, 2005. As a result of the recent

with a means to obtain a research credit for certain expenditures

legislation, the environmental response action commencement cut-

not qualifying for the existing research credit under c. 63, § 38M. St.

off date is changed from August 5, 2005 to August 5, 2013, and the

2008, c. 130, §§ 30 and 53, codified at G.L. c. 63, § 38W. Under this

time for incurring eligible costs that qualify for the credit is extended

new provision, the credit is generally calculated in the same manner

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

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

search expenditures which form the basis for the calculation in new

Life Science Company Investment

section 38W differ from those of section 38M in that they can qualify

Tax Credit

when the activities are performed both inside and outside of the

For taxable years beginning on or after January 1, 2009, a new In-

Commonwealth, to the extent they relate to legally mandated clinical

vestment Tax Credit (ITC) may be available to taxpayers.

trial activities. The new life sciences research credit is not refund-

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

able. For further information, see TIR 08-23.

to the extent authorized pursuant to the Life Sciences Tax Incentive

Refundable Life Science Jobs Credit

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

Effective for tax years beginning on or after January 1, 2011, a new

constructed or erected during the taxable year and used exclusively

in the Commonwealth.

tax incentive has been added to the Life Sciences Tax Incentive Pro-

gram in the form of a refundable jobs credit. A taxpayer, to the extent

The refundable ITC can apply to purchases made on or after Janu-

authorized by the Life Sciences Tax Incentive Program, may be al-

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

lowed a refundable jobs credit against the tax liability imposed under

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

G.L. c. 62, the personal income tax, or G.L. c. 63, the corporate ex-

the same as that provided by the existing ITC under M.G.L. Ch. 63,

cise. A taxpayer claiming a life sciences refundable jobs credit must

sec. 31A.

commit to the creation of a minimum of 50 net new permanent full-

Life sciences companies or persons also qualifying for the Economic

time positions in Massachusetts.

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

The amount of life sciences jobs credit allowed to a taxpayer will be

take such EOAC to the extent of an additional 2% of the cost of the

determined by the Massachusetts Life Sciences Center in consulta-

qualifying property. Corporations taking these credits are not allowed

tion with the Department of Revenue.

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

If a life sciences jobs credit claimed by a taxpayer exceeds the tax

Housing Credit under M.G.L. Ch. 63, sec. 31H for the same qualify-

otherwise due under the personal income tax or the corporate excise,

ing property.

as applicable, 90% of the balance of such credit may, to the extent

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

authorized by the life sciences tax incentive program, be refundable

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

to the taxpayer. Excess credit amounts shall not be carried forward

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

to subsequent taxable years.

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

The refundable jobs credit is subject to all the requirements of G.L. c.

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

23I, including the requirements set out in TIR 08-23. The total dollar

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

amount of the various life sciences tax incentives, including the re-

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

further information, see TIR 08-23.

fundable jobs credits, for qualifying life sciences companies is sub-

ject to an annual cap of $25 million.

Life Science Company FDA User Fees Credit

Refundable Dairy Credit

For taxable years beginning on or after January 1, 2009, a new

credit may be available to taxpayers for user fees paid on or after

A taxpayer who holds a certificate of registration as a dairy farmer

June 16, 2008 to the U. S. Food and Drug Administration (USFDA)

pursuant to M.G.L. Ch. 94, sec. 16A is allowed a refundable tax credit

upon submission of an application to manufacture a human drug in

based on the amount of milk produced and sold. The dairy farmer

the Commonwealth.

tax credit as originally enacted was 90% refundable. Under recent

legislation, the dairy farmer tax credit is now 100% refundable.

Instructions For Form 63 Fi - Massachusetts Financial Institution Excise Tax Return - 2012 Page 5

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