Form 355sc - Massachusetts Security Corporation Excise Return

Line Instructions

Registration Information

Lines 8

Any foreign or domestic security corporation which purchases or leases

Enter the corporation’s principal business code and Federal Identifi-

shuttle vans as part of an employer-sponsored ridesharing program

cation number above the name and address of the corporation.

is eligible for the Massachusetts Vanpool Credit. The credit is equal

Line 3

to 30% of the total purchase or lease costs for qualifying vans used

in the Commonwealth. To take the Vanpool Credit, complete Sched-

Check if the corporation is a Class 1 or Class 2 security corporation

ule VP, Vanpool Credit. For further information on this credit, refer to

as classified by the Commissioner of Revenue. For an explanation of

Schedule VP or MGL, Ch. 63, sec. 31E.

the differences between Class 1 and Class 2 security corporations,

please refer to the General Information section of the instructions.

Line 9

Line 12

For taxable years beginning on or after January 1, 2006 and before

January 1, 2023, Massachusetts allows two credits for motion picture

Any corporation undergoing a voluntary dissolution should notify the

production companies who meet certain qualification requirements.

DOR within 30 days of the vote to dissolve by writing to: Massachu-

Production companies who incur at least $50,000 of production costs

setts Department of Revenue, Customer Service Bureau, PO Box

in Massachusetts are eligible for income and corporate excise tax

7010, Boston, MA 02204.

credits equal to 50% of the total Massachusetts payroll for the produc-

Line 13

tion, excluding salaries of $1 million and higher. In addition, produc-

If there have been significant changes in your corporation’s activi-

tion companies whose Massachusetts production expenses exceed

ties during the taxable year, enclose a statement explaining these

50% of the total production cost receive an income and corporate

changes. Security corporations must notify the Commissioner of

excise tax credit of 25% of the total Massachusetts production ex-

Revenue of any change in their activities before the end of their tax-

pense. The total credit for any one production is capped at $7 mil-

able year.

lion. Supporting documentation must be available to the Department

of Revenue upon request. To claim the Film Incentive Credit, enter

Computation of Excise

the Certificate Number issued by the Department of Revenue. For

further information on the Film Incentive Credit, see TIR 06-1. Cer-

A provision applies to security corporations, effective for tax years

tificate application forms and additional information are available at

that end on or after October 1, 2004, stating that qualified securities

only include instruments that were initially acquired through a public

exchange or another arms length secondary market. See TIR 04-21

Line 10

for further information.

Under the provisions of the Economic Development Incentive Pro-

The Computation of Excise section is used to calculate either the

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

Class 1 or Class 2 security corporation excise. The respective ex-

Assistance Coordination Council (EACC) may authorize taxpayers

cise rates are:

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 by

• Class 1 security corporation: .33% of Massachusetts gross in-

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

come; and

ary 1, 2010 must use Form EDIP, Refundable Economic Develop-

ment Incentive Program Credit, to claim such credits. Taxpayers

• Class 2 security corporation: 1.32% of Massachusetts gross income.

seeking to claim credits for projects certified prior to January 1, 2010

Massachusetts law also provides for a minimum security corpora-

must use Schedule EOAC. See TIR 10-01 for further information.

tion excise of $456.

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Line 1

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

Enter the corporation’s U.S. total income from the appropriate U.S.

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

form.

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

toric rehabilitation project must be complete and have been certified

Line 2

by the Massachusetts Historical Commission. Unused portions of

Enter all interest received on state and municipal bond obligations

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

not reported in line 1.

credit may be sold or transferred to another taxpayer. The HRC is

not subject to the 50% limitation rule for corporate taxpayers. If the

Line 3

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

Massachusetts law does not allow security corporations to take de-

the credit may be subject to recapture.

ductions for ordinary losses in the course of business or for capital

losses carried over from other taxable years. Consequently, any of

To claim the credit, supporting documentation must be enclosed

the following lines which have been deducted from total U.S. in-

with the return.

come must be entered in line 3 and added back into income:

• any losses from U.S. Form 4797, lines 7 and 17, column g; and

• any capital losses carried over from other taxable years, and de-

ducted on U.S. Schedule D.

Any amount required to be added to income in line 3 must be ac-

companied by an explanatory schedule.

Form 355sc - Massachusetts Security Corporation Excise Return - 2012 Page 5

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