Form 355 - Massachusetts Corporation Excise Return

Line by Line Instructions

◗ place of installation.

Line 5

(See M.G.L. Ch. 63, sec. 38D(d) and sec. 38H(e)

for further explanation.)

Enter any allowable U.S. Wage Credit used in cal-

If these amounts are prorated, the computation

culating U.S. Form 1120, line 13.

Capital gains on installment sales of intangible

should be explained.

property made prior to 1963 may also be deducted

If eligible units do not continue in qualified use for

Line 7

from income. These gains fall under the provisions

ten years, the deductions previously allowed must

Enter all interest received on state and municipal

of prior Massachusetts law when such income

be added back to taxable income. The amount

obligations not reported in U.S. net income.

was not taxable (see M.G.L. Ch. 63, sec. 38(a)(2)).

should be entered in Schedule E, line 13.

This adjustment should be made in line 8.

Line 8

Note: The special deduction for the construction

Deduct the full U.S. research credit generated pro-

Massachusetts does not allow a deduction for

of certified industrial waste and/or air pollution

vided that the full U.S. research credit was taken. If

state, local and foreign income, franchise, excise

treatment facilities does not apply to expenditures

a reduced U.S. research credit was taken, no ad-

or capital stock taxes. Any such taxes which have

paid or incurred on or after January 1, 1980.

justments are necessary.

been deducted from U.S. net income should be en-

Line 26

tered in line 8 and added back into income.

From Massachusetts Schedule RC, Part 1, line 21,

Enter the amount of the corporation's loss carryover

add back the full Massachusetts research credit

Line 9

deduction from Schedule E-2, line 8.

generated.

For Massachusetts purposes, for taxable years

The deduction allowed to a corporation for any ex-

Line 27

ending after September 10, 2001, depreciation is

pense which qualifies for the Massachusetts Re-

to be claimed on all assets, regardless of when

Subtract the amount on line 26 from the amount on

search Credit must be reduced by the Massachu-

they are placed in service, using the method used

line 25. Enter this amount in the excise calculation

setts Research Credit determined in the current

for U.S. income tax purposes prior to the enact-

section, line 3.

taxable year. In addition, subsection (c) of IRC sec.

ment of sec. 168(k). For more information, see TIR

280C, which requires a similar reduction of the de-

02-11 and TIR 03-25.

Corporate

duction, shall not apply in determining Massachu-

setts net income.

Line 10

Disclosure Schedule

A taxpayer must add back to net income any re-

Capital loss carryovers are not allowed under Mass-

lated member intangible expenses and costs, in-

achusetts law. Any loss claimed on the U.S. return

Chapter 402 of the Acts of 1992 require the De-

cluding losses incurred in connection with factor-

must be added back here.

partment of Revenue to conduct an annual analysis

ing or discounting transactions. If you qualify for

If the corporation has income not subject to ap-

of corporate tax liability. To provide the department

an exception to the add back requirement, com-

portionment, the amount should be deducted here

with information necessary to complete this analy-

plete Schedule ABIE. For further information, see

and entered on Schedule E, line 22.

sis, corporations are required to report amounts

TIR 03-19.

taken federally for charitable contributions, re-

Line 15

search expenses and certain types of depreciation.

Line 11

Enter the total cost of renovating an abandoned

All corporations must complete the Corporate Dis-

A taxpayer must add back to net income any re-

building in an Economic Opportunity Area. Multi-

closure Schedule on their return or the return will

lated member interest expenses and costs, in-

ply this amount by 10% and enter here.

be considered insufficient and will be subject to

cluding losses incurred in connection with

applicable penalties and interest.

factoring or discounting transactions. If you qual-

Line 16

ify for an exception to the add back requirement,

Refer to Schedule E-1 for the allowable deductions

Schedule CR. Other

complete Schedule ABI. For further information,

for dividends. Dividends from a Massachusetts

see TIR 03-19.

corporate trust, a non-wholly-owned DISC or a

Corporate Credits

corporation of which less than 15% of the voting

Line 12

stock is owned are not deductible. Also, direct or

Massachusetts has decoupled from the American

Schedule CR is used to calculate the total of any

indirect dividends received from a RIC or REIT

Jobs Creation Act of 2004, Public Law 108-357.

credits being claimed for use in the current tax year.

are not deductible.

For corporate excise purposes, the definition of

Corporations which are members of a combined

net income does not include the new federal pro-

Line 24

group required to file Form 355U that must pay

duction activity deduction. See TIR 05-5 for fur-

A deduction is allowed for expenditures paid or in-

an excise with this return (corporations with a fis-

ther information.

curred during the taxable year for the installation of

cal year ending at a different time than the taxable

any solar or wind powered climate control or water

year for which the combined report is being filed)

Line 13

heating unit. Ancillary units do not qualify.

should report on Schedule CR only the type and

Enter any adjustments to income not previously re-

In order to be eligible for this deduction, the prop-

amount of credit(s) being claimed against the ex-

ported. For example, enter in this line the amount

erty must be certified by the Office of Facilities

cise shown on this return.

of depreciation or amortization taken this year in

Management. A copy of such certification must be

computing U.S. net income for the following:

available along with a schedule itemizing the:

◗ certified industrial waste and/or pollution treat-

◗ cost;

ment facilities of prior years; or

◗ allowable U.S. depreciation;

◗ certified solar/wind units of current or prior

◗ date of installation; and

years, if said facilities were sold during the year.

Form 355 - Massachusetts Corporation Excise Return - 2012 Page 11

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