Form 355s - Massachusetts S Corporation Excise Return

General Information

plication to manufacture a human drug in the

ferred or carried forward a portion of the film credit

90 percent of the balance of such credit may, to

Commonwealth.

for the production. Transferees of the film credit do

the extent authorized by the life sciences tax incen-

not qualify for the refundable film credit.

tive program, be refundable to the taxpayer. Excess

This credit, which is available to certified life sci-

credit amounts shall not be carried forward to sub-

ences companies only to the extent authorized

If an election to refund the film credit for a pro-

sequent taxable years.

pursuant to the Life Sciences Tax Incentive Pro-

duction is made, the entire film credit remaining

gram, is equal to 100% of the user fees actually

after reducing the current year tax liability will be

The refundable jobs credit is subject to all the re-

paid by the taxpayer, as specified in the certifica-

refunded at 90%. The production company is not

quirements of G.L. c. 23I, including the require-

tion, and may be claimed in the taxable year in

allowed to partially refund and partially transfer or

ments set out in TIR 08-23. The total dollar amount

which the application for licensure of an estab-

carryover over any portion of the credit to the next

of the various life sciences tax incentives, includ-

lishment to manufacture the drug is approved by

tax year.

ing the refundable jobs credits, for qualifying life

the U.S.F.D.A. To be eligible for the credit, more

sciences companies is subject to an annual cap of

Refundable Dairy Credit

than 50% of the research and development costs

$25 million.

A taxpayer who holds a certificate of registration

for the drug must have been incurred in Mass-

Refundable Economic Development

as a dairy farmer pursuant to M.G.L. Ch. 94, sec.

achusetts.

Incentive Credit

16A is allowed a refundable tax credit based on

Taxpayers may use the FDA user fees credit to

the amount of milk produced and sold. The dairy

Under the provisions of the Economic Develop-

their tax to zero. To the extent authorized pur-

farmer tax credit as originally enacted was 90%

ment Incentive Program (EDIP) established pur-

suant to the Life Sciences Tax Incentive Program,

refundable. Under recent legislation, the dairy

suant to M.G.L. Ch. 23A, the Economic Assistance

90% of the balance of credit remaining is refund-

farmer tax credit is now 100% refundable.

Coordination Council (EACC) may authorize tax-

able. The deduction otherwise allowable for user

payers participating in certified projects to claim

fees qualifying for the credit is disallowed.

Refundable Life Science Credit

tax credits under M.G.L. Ch. 62 sec. 6(g) and

For further information, see TIR 08-23. The

There are different credits which the Massachu-

M.G.L. Ch. 63 sec. 38N. Taxpayers authorized by

amount of this credit must be entered on Sched-

setts Life Sciences Center, with the approval of

the EACC to claim tax credits for projects certified

ule CR.

the Secretary of Administration and Finance, may

on or after January 1, 2010 must use Form EDIP,

authorize a taxpayer to have refunded in lieu of

Refundable Economic Development Incentive

Life Sciences Company Research

carrying forward such credit to a future year.

Program Credit, to claim such credits. Taxpayers

Credit

seeking to claim credits for projects certified prior

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

For taxable years beginning on or after January 1,

to January 1, 2010 must use Schedule EOAC. See

unused Investment Tax Credit granted under

2009, a new credit may be available for certified

TIR 10-01 for further information.

M.G.L. Ch. 63, sec. 38U or the additional credit

life sciences companies pursuant to the Life Sci-

on the same property that may be granted under

ences Tax Incentive Program, to provide qualify-

What If a

M.G.L. Ch. 63, sec. 38N if property for which the

ing companies with a means to obtain a research

38U credit is granted is used in a certified project.

credit for certain expenditures not qualifying for

Corporation’s

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

the existing research credit under c. 63, § 38M.

unused FDA User Fee Credit granted under

St. 2008, c. 130, §§ 30 and 53, codified at G.L. c.

Taxable Year Is Less

M.G.L. Ch. 63, sec. 38M, including credits carried

63, § 38W. Under this new provision, the credit is

over from prior years. Refundable Life Science

generally calculated in the same manner as the

Credit, is used by taxpayers to claim the refund.

Than 12 Months?

research credit under section 38M. However, the

qualified research expenditures which form the

Refundable Life Science Jobs Credit

basis for the calculation in new section 38W differ

Corporations whose taxable year is less than twelve

Effective for tax years beginning on or after Janu-

from those of section 38M in that they can qualify

calendar months may determine their excise by

ary 1, 2011, a new tax incentive has been added

when the activities are performed both inside and

prorating calendar months for the non-income

to the Life Sciences Tax Incentive Program in the

outside of the Commonwealth, to the extent they

measure of the excise only. Schedules should be

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

relate to legally mandated clinical trial activities.

available to explain any prorating computations.

extent authorized by the Life Sciences Tax Incentive

The credit can reduce the corporate excise to the

The gross receipts of a corporation must be annu-

Program, may be allowed a refundable jobs credit

minimum excise of $456 and may be carried for-

alized for a short period return for purposes of de-

against the tax liability imposed under G.L. c. 62,

ward for 15 years. Unlike the regular research

termining whether the corporation’s gross receipts

the personal income tax, or G.L. c. 63, the corpo-

credit, as amended by the new subsection (j) of

are $6 million or more. If not, there is no tax on

rate excise. A taxpayer claiming a life sciences re-

section 38M, described above, the new life sci-

income on the corporate level.

fundable jobs credit must commit to the creation

ences research credit under M.G.L. Ch. 63, sec.

of a minimum of 50 net new permanent full-time

To compute total receipts for a taxable year con-

38W is not refundable.

positions in Massachusetts.

sisting of less than 12 months, an S corporation

For further information, see TIR 08-23. The

must annualize its total receipts for the taxable

The amount of life sciences jobs credit allowed to a

amount of this credit must be entered on Sched-

year by multiplying the total taxable receipts for

taxpayer will be determined by the Massachusetts

ule CR.

the short taxable year by 12 and then dividing the

Life Sciences Center in consultation with the De-

resulting amount by the number of months in the

partment of Revenue.

Refundable Film Credit

short taxable year. The resulting difference is en-

If a life sciences jobs credit claimed by a taxpayer

Schedule RFC, Refundable Film Credit, is used by

tered on Schedule S, line 11.

exceeds the tax otherwise due under the personal

motion picture production companies to elect to

For further information, see Regulation 830 CMR

income tax or the corporate excise, as applicable,

claim a refundable film credit if they have not trans-

62.17A.1 sec. 11(c).

Form 355s - Massachusetts S Corporation Excise Return - 2012 Page 7

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