Form 355 - Massachusetts Corporation Excise Return

General Information

ing Credit under M.G.L. Ch. 63, sec. 31H for the

generally calculated in the same manner as the

prior years. Schedule RLC, Refundable Life Science

same qualifying property.

research credit under section 38M. However, the

Credit, is used by taxpayers to claim the refund.

qualified research expenditures which form the

If a life sciences ITC exceeds the tax otherwise

Refundable Life Science Jobs Credit

basis for the calculation in new section 38W differ

due under the corporate excise, as applicable,

Effective for tax years beginning on or after Janu-

from those of section 38M in that they can qualify

90% of the balance of such credit may, at the op-

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

when the activities are performed both inside and

tion of the taxpayer and to the extent authorized

to the Life Sciences Tax Incentive Program in the

outside of the Commonwealth, to the extent they

pursuant to the Life Sciences Tax Incentive Pro-

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

relate to legally mandated clinical trial activities.

gram, be refundable to the taxpayer for the tax

extent authorized by the Life Sciences Tax Incentive

year in which the qualified property giving rise to

The credit can reduce the corporate excise to the

Program, may be allowed a refundable jobs credit

such credit is placed in service. If such refund is

minimum excise of $456 and may be carried for-

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

elected by the taxpayer, then the carryover provi-

ward for 15 years. Unlike the regular research

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

sions for this credit that would otherwise apply

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

rate excise. A taxpayer claiming a life sciences re-

shall not be available.

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

fundable jobs credit must commit to the creation

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

For further information, see TIR 08-23. The

of a minimum of 50 net new permanent full-time

38W is not refundable.

amount of this credit must be entered on Sched-

positions in Massachusetts.

ule CR.

For further information, see TIR 08-23. The

The amount of life sciences jobs credit allowed to a

amount of this credit must be entered on Sched-

taxpayer will be determined by the Massachusetts

Life Science Company FDA User

ule CR.

Life Sciences Center in consultation with the De-

Fees Credit

partment of Revenue.

Refundable Film Credit

For taxable years beginning on or after January 1,

Schedule RFC, Refundable Film Credit, is used by

If a life sciences jobs credit claimed by a taxpayer

2009, a new credit may be available to corporate

motion picture production companies to elect to

exceeds the tax otherwise due under the personal

excise tax payers for user fees paid on or after

income tax or the corporate excise, as applicable,

claim a refundable film credit if they have not trans-

June 16, 2008 to the U. S. Food and Drug Admin-

90 percent of the balance of such credit may, to

ferred or carried forward a portion of the film credit

istration (U.S.F.D.A.) upon submission of an ap-

for the production. Transferees of the film credit

the extent authorized by the life sciences tax incen-

plication to manufacture a human drug in the

do not qualify for the refundable film credit.

tive program, be refundable to the taxpayer. Excess

Commonwealth.

credit amounts shall not be carried forward to sub-

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

This credit, which is available to certified life sci-

sequent taxable years.

duction is made, the entire film credit remaining

ences companies only to the extent authorized pur-

after reducing the current year tax liability will be

The refundable jobs credit is subject to all the re-

suant to the Life Sciences Tax Incentive Program,

refunded at 90%. The production company is not

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

is equal to 100% of the user fees actually paid by

allowed to partially refund and partially transfer or

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

the taxpayer, as specified in the certification, and

carryover over any portion of the credit to the next

of the various life sciences tax incentives, includ-

may be claimed in the taxable year in which the ap-

tax year.

ing the refundable jobs credits, for qualifying life

plication for licensure of an establishment to man-

sciences companies is subject to an annual cap of

ufacture the drug is approved by the U.S.F.D.A. To

Refundable Dairy Credit

$25 million.

be eligible for the credit, more than 50% of the re-

A taxpayer who holds a certificate of registration

search and development costs for the drug must

Refundable Economic Development

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

have been incurred in Massachusetts.

16A is allowed a refundable tax credit based on

Incentive Credit

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 pursuant

farmer tax credit as originally enacted was 90%

ment Incentive Program (EDIP) established pur-

to the Life Sciences Tax Incentive Program, 90% of

refundable. Under recent legislation, the dairy

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

the balance of credit remaining is refundable. The

farmer tax credit is now 100% refundable.

Coordination Council (EACC) may authorize tax-

deduction otherwise allowable for user fees qual-

payers participating in certified projects to claim

ifying for the credit is disallowed.

Refundable Life Science Credit

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

There are different credits which the Massachu-

For further information, see TIR 08-23. The

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

setts Life Sciences Center, with the approval of the

amount of this credit must be entered on Sched-

the EACC to claim tax credits for projects certified

Secretary of Administration and Finance, may au-

ule CR.

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

thorize a taxpayer to have refunded in lieu of carry-

Refundable Economic Development Incentive

Life Sciences Company Research

ing 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 M.G.L.

2009, a new credit may be available for certified

TIR 10-01 for further information.

Ch. 63, sec. 38U or the additional credit on the

life sciences companies pursuant to the Life Sci-

same property that may be granted under M.G.L.

ences Tax Incentive Program, to provide qualify-

Ch. 63, sec. 38N if property for which the 38U

ing companies with a means to obtain a research

credit is granted is used in a certified project.

credit for certain expenditures not qualifying for

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

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

used FDA User Fee Credit granted under M.G.L. Ch.

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

63, sec. 38M, including credits carried over from

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

Form 355 - Massachusetts Corporation Excise Return - 2012 Page 6

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