Form 355 - Massachusetts Corporation Excise Return

General Information

See Schedule RC instructions for further informa-

Low-Income Housing Credit

for the production, excluding salaries of $1 mil-

tion. To claim the Research Credit, Schedule RC

lion and higher. In addition, production companies

This credit is administered through the Massachu-

must be completed and the amount of the credit

whose Massachusetts production expenses ex-

setts Department of Housing and Community De-

entered on Schedule CR.

ceed 50% of the total production cost receive an

velopment (DHCD). The Low-Income Housing

income and corporate excise tax credit of 25% of

Credit is available to taxpayers that claim a U.S.

Harbor Maintenance Tax Credit

the total Massachusetts production expense. Sup-

credit for the construction or development of low-

Corporations are allowed a credit against the cor-

porting documentation must be available to the

income housing. The state credit is taken over five

porate excise for certain harbor maintenance

Department of Revenue upon request.

years. The amount of credit a taxpayer may claim

taxes paid to the U.S. Customs Service pursuant

for a qualified Massachusetts project is allocated

For further information on the Film Incentive

to IRC sec. 4461. A corporation is eligible for the

by the DHCD and is based on a total pool of money

Credit, see TIR 07-15. To claim the Film Incentive

credit if the tax paid is attributable to the ship-

awarded to the Commonwealth. In order to claim

Credit, enter the Certificate Number issued by the

ment of break-bulk or containerized cargo by sea-

the credit, a copy of the eligibility statement issued

Department of Revenue and the amount of the

and ocean-going vessels through a Massachusetts

by DHCD must be available upon request.

credit on Schedule CR. Certificate application

harbor facility.

forms and additional information are available at

The LIHC is not subject to the 50% limitation rule

The credit is not subject to the 50% limitation;

for corporate taxpayers. If the taxpayer disposes of

however, it may not reduce the tax to less than

the property generating the LIHC, a portion of the

Medical Device Credit

the minimum excise of $456. A taxpayer may car-

credit may be subject to recapture.

ryover any excess credit to any of the next suc-

The Medical Device Credit is equal to 100% of the

For further information regarding this credit, con-

ceeding five taxable years.

user fees actually paid to the United States Food

tact the Department of Housing and Community

and Drug Administration (USFDA) by a medical de-

See Schedule HM instructions for further informa-

Development, Division of Private Housing, at

vice company during the taxable year for which the

tion. To claim the Harbor Maintenance Tax Credit,

(617) 727-7824.

tax is due for pre-market submissions (e.g., appli-

Schedule HM must be completed and the amount

To claim the Low-Income Housing Credit, sup-

cations, supplements, or 510(k) submissions) to

of the credit entered on Schedule CR.

porting documentation must be enclosed with the

market new technologies or upgrades, changes,

return and the amount of the credit entered on

or enhancements to existing technologies, devel-

Brownfields Tax Credit

Schedule CR.

oped or manufactured in Massachusetts.

Taxpayers are allowed a credit for amounts ex-

pended to rehabilitate contaminated property

For further information on the Medical Device

Historic Rehabilitation Credit

owned or leased for business purposes and lo-

Credit, see TIR 06-22. To claim the Medical De-

Effective for years beginning on or after January

cated within an economically distressed area.

vice Credit, enter the Certificate Number issued

1, 2005 and ending on or before December 31,

by the Department of Revenue and the amount of

The eligibility period for the Brownfields Credit has

2017, taxpayers may be eligible for the Historic

the credit on Schedule CR. Certificate application

been lengthened. The environmental response ac-

Rehabilitation Credit (HRC). To claim this credit, a

forms and additional information are available at

tion commencement cut-off date has been ex-

historic rehabilitation project must be complete

tended from August 5, 2005 to August 5, 2013 and

and have been certified by the Massachusetts His-

the time for incurring eligible costs that qualify for

torical Commission. Unused portions of the credit

Life Science Company Investment

the credit has been extended to January 1, 2014.

may be carried forward for a maximum of five

Tax Credit

years. This credit may be transferred or sold to an-

The Brownfields Credit may be transferred, sold

For taxable years beginning on or after January 1,

other taxpayer.

or assigned to another taxpayer with a liability

2009, a new Investment Tax Credit (ITC) may be

under chapter 62 or chapter 63, or to a nonprofit

The HRC is not subject to the 50% limitation rule

available corporate excise taxpayers.

organization.

for corporate taxpayers. If the taxpayer disposes of

This credit, which is available to certified life sci-

the property generating the HRC, a portion of the

The Department will issue a certificate to the party

ences companies only to the extent authorized pur-

credit may be subject to recapture.

receiving the Brownfields Credit reflecting the

suant to the Life Sciences Tax Incentive Program,

amount of the Brownfields Credit received. The

For further information, see Regulation 830 CMR

is equal to 10% of the cost of qualifying property

party receiving the Brownfields Credit must en-

63.38R.1, Massachusetts Historic Rehabilitation

acquired, constructed or erected during the taxable

close the certificate with each tax return in which

Tax Credit and TIR 10-11.

year and used exclusively in the Commonwealth.

the credits are being applied. Certificate application

To claim the Historic Rehabilitation Credit, sup-

The refundable ITC can apply to purchases made

forms and additional information are available at

porting documentation must be enclosed with the

on or after January 1, 2009 even if a construction

return and the amount of the credit entered on

project started before that date. The scope of qual-

The Brownfields Credit cannot offset more than

Schedule CR.

ifying property for purposes of the new credit is the

50% of the excise due nor reduce the excise be-

same as that provided by the existing ITC under

low the minimum tax. Any unused credit may be

Film Incentive Credit

M.G.L. Ch. 63, sec. 31A.

carried forward for five years.

For taxable years beginning on or after January 1,

Life sciences companies or persons also qualify-

2006 and before January 1, 2023, Massachusetts

See Schedule BC instructions and TIR 06-16 for

ing for the Economic Opportunity Area Credit

allows two credits for motion picture production

further information. To claim the Brownfields

(EOAC) for the same property may only take such

companies who meet certain qualification require-

Credit, Schedule BC must be completed and the

EOAC to the extent of an additional 2% of the cost

ments. Production companies who incur at least

amount of the credit entered on Schedule CR.

of the qualifying property. Corporations taking

$50,000 of production costs in Massachusetts are

these credits are not allowed to take the ITC under

eligible for income and corporate excise tax cred-

M.G.L. Ch. 63, sec. 31A or the Low-Income Hous-

its equal to 20% of the total Massachusetts payroll

Form 355 - Massachusetts Corporation Excise Return - 2012 Page 5

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