Looking for a Massachusetts Form 63-20p Templates? Download it for free!

Foreign Accident & Health insurance companies are taxed on net di-

Line 15: Initiative Credit. A company shall be allowed a credit against

rect premiums for insurance of property or interest in Massachusetts.

the premium tax equal to 1

% (.015) of such company’s total capital

⁄

contribution in excess of their full proportionate share which shall mean

Foreign life insurance companies are taxed on all new and renewal

an investment in the Massachusetts Life Insurance Company Commu-

policies issued during the preceding calendar year if the insured is a

nity Investment Initiative.

resident of Massachusetts at the time the premium was paid.

This credit is effective for tax years in which the aggregate cumula-

Federal Audit

tive investment in the Massachusetts Life Insurance Company Com-

If your corporation has undergone a federal audit for some prior year,

munity Investment Initiative reaches 100 million or the tax year 2005,

you must report any changes to Massachusetts on Form CA-6, Appli-

whichever is later.

cation for Abatement/Amended Return. You must report any federal

Line 16. Enter 1

% (.015) of the company’s proportionate share of

⁄

audit changes within three months after the final determination by the

the cost of certain investments in the Massachusetts Capital Re-

IRS of the correct taxable income. Otherwise, you will be subject to a

source Company.

penalty. If the federal change results in less tax due to Massachusetts

than was assessed or paid, you may apply for abatement under the

Line 17: Credit for member insurers of the Massachusetts Life

federal change rules within one year of the final federal determination.

and Health Insurance Guaranty Association. Enter 10% of the as-

Answering “yes” to this question does not release the corporation from

sessment for each of the five years following the year in which the

this filing obligation.

assessment was paid. If the sum of offsets exceeds $3,000,000, the

excess may be carried forward and may be used in a year in which

Should the Whole Dollar Method be Used?

the $3,000,000 is not exceeded. If the total offsets exceed $3,000,000

Yes. All amounts entered on Form 63-20P must be rounded off to the

in a year, the Department of Revenue will assess each member with

nearest dollar.

an additional tax equal to the amount of the offset which exceeds

What if the Taxpayer Is a Fiscal or Short Year

$3,000,000 of such members pro rata share. If the total offsets do not

Filer?

exceed $3,000,000 in a year, the Department of Revenue will calcu-

File the 2012 return for calendar year 2012 and fiscal years that began

late each members’ pro rata share to determine the amount of refund

in 2012 and ended in 2013. For a fiscal year return, fill in the tax year

due each member and issue a refund to each member.

space at the top of page 1. Short year filers should file using the tax

Line 18: Economic Opportunity Area Credit. Enter the amount of

form for the calendar year within which the short year falls. If the short

Economic Opportunity Area credit claimed this year from Schedule

year spans more than one calendar year, the filer should file use the

EOAC. Enclose Schedule EOAC with this return. For more informa-

tax form for the calendar year in which the short year began. If the

tion, contact the Massachusetts Office of Business Development at

current form is not available at the time the short year filer must file,

One Ashburton Place, Room 2101, Boston, MA 02108.

the filer should follow the rules explained in TIR 11-12.

Line 19: Economic Development Incentive Program Credit. Under

Line Instructions

the provisions of the Economic Development Incentive Program (EDIP)

Line 1. Enter the amount of premiums subject to tax in Massachusetts

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

(from Part 1, Domestic Life Premium Excise Calculation, line 10). If

Coordination Council (EACC) may authorize taxpayers participating in

amount is negative, enter "0."

certified projects to claim tax credits under M.G.L. Ch. 62 sec. 6(g) and

Line 2. Enter the amount from Form DL-1A, Part II, Excise of Net

M.G.L. Ch. 63 sec. 38N. Taxpayers authorized by the EACC to claim

value of Policies, if applicable.

tax credits for projects certified on or after January 1, 2010 must use

Form EDIP, Refundable Economic Development Incentive Program

Line 4. Enter the amount of accident and health premiums subject to

Credit, to claim such credits. Taxpayers seeking to claim credits for

tax in Massachusetts from Part 1, Domestic Life Premium Excise Cal-

projects certified prior to January 1, 2010 must use Schedule EOAC.

culation, line 11.

See TIR 10-01 for further information.

Lines 5 and 13: Credit Recapture. If the corporation is required to

Line 20: Low-Income Housing Credit. To claim the Low-Income

recapture any amount of previously claimed Economic Opportunity

Housing credit, documentation must be enclosed with the return. For

Area Credit, Low-Income Housing Credit, Life Science Credit and His-

further information on this credit, contact the DHCD, Division of Pri-

toric Rehabilitation Credit, complete Schedule H-2 and enter the result

vate Housing, at (617) 727-7824.

in line 5 or 13 of the return. Current year credits can then be used to

offset the total excise due which will include the recapture amount.

Line 21: Historic Rehabilitation Credit. Effective for tax years begin-

ning on January 1, 2005 and ending on or before December 31, 2017,

Line 7. Enter the amount of life premiums subject to tax in Mass-

taxpayers may be eligible for the Historic Rehabilitation Credit (HRC).

achusetts from Part 2, Foreign Premium Excise Calculation, line 7. If

To claim this credit, a historic rehabilitation project must be complete

amount is negative, enter “0.”

and have been certified by the Massachusetts Historical Commission.

Lines 8 and 11. Use the back of Form 63-20P to calculate your excise

Unused portions of the credit may be carried forward for a maximum

using the same method and rate used by the state in which you are in-

of 5 years. This credit may be transferred or sold to another taxpayer.

corporated and would be imposed on a like Massachusetts insurance

The HRC is not subject to the 50% limitation rule for corporate tax-

company, or its agents, if doing business to the same extent. If the

payers. If the taxpayer disposes of the property generating the HRC,

computation in the state of your incorporation is in every respect the

a portion of the credit may be subject to recapture. For further infor-

same as your Massachusetts computation, a statement to that effect

mation, see Regulation 830 CMR63.38.1, Massachusetts Historic Re-

should be made. Retaliatory tax provisions are provided under M.G.L.

habilitation Tax Credit.

Chapter 63, Section 24A.

Line 22: Film Incentive Credit. For tax years beginning on or after

Line 10. Enter the amount of total net direct accident and health pre-

January 1, 2006 and before January 1, 2023, motion picture compa-

miums subject to tax in Massachusetts from Part 2, Foreign Premium

nies may claim a credit equal to 20% of the total qualifying aggregate

Excise Calculation, line 12. If the amount is negative, enter “0.”

payroll for employing persons within the Commonwealth in connection

Form 63-20p - Massachusetts Premium Excise Return For Life Insurance Companies - 2012 Page 3

Related Articles

Related forms

Related Categories