Instructions For Schedule Rc - Research Credit

Instructions For Schedule Rc - Research Credit - 2012 Page 4

Line 2

Corporations which are members of a group which must compute the credit on an aggregate

basis, enter the total Massachusetts basic research payments made by all members of the

group on line 2. Corporations which are not members of an aggregated group should enter the

amount shown in line 1 in line 2.

Line 3

Enter the base period amount, as defined under section 41(e) of the lRC, which includes only

expenses attributable to research activity conducted in Massachusetts and payments made to

organizations organized under the laws of Massachusetts.

Line 4

Subtract line 3 from line 2 and enter the difference here. This amount is the incremental basic

research payments which qualify for the credit.

Line 5

Multiply line 4 by 15% (.15) and enter the result here. This amount equals the credit for basic

research payments before any limitations.

Massachusetts Qualified Research Expenses

Line 6

Enter the amount of wages paid for qualified services, as defined by section 41(b) (2) (B) of

the lRC, performed in Massachusetts.

Line 7

Enter the amount paid for supplies, as defined by section 41(b) (2) (C) of the lRC, used or

consumed in Massachusetts in conducting qualified research.

Line 8

Enter the amounts paid for the right to use computers located in Massachusetts in the conduct

of qualified research that takes place in Massachusetts, to the extent such amounts are treated

as in-house research expenses under section 41(b)(2)(A)(iii) of the lRC.

Line 9

Enter 65% of amounts paid to others as contract research expenses, as defined by section

41(b)(3) of the IRC, to the extent attributable to research activity conducted at a research

facility located in Massachusetts. Also include 65% of that portion of the line 1 basic

research payments which does not exceed the line 3 base amount, as allowed under section

41(e) (1) (B) of the IRC.

Line 10

Add lines 6 through 9. This amount equals your total qualified research expenses.

Instructions For Schedule Rc - Research Credit - 2012 Page 4