Massachusetts Research Credit

Program Overview

Massachusetts provides a state research credit based on the federal Section 41 framework for qualifying research conducted in the Commonwealth. The credit may offset Massachusetts corporate excise liability, subject to applicable limitations, and unused credits may be carried forward for the applicable period. Separate refundable incentives may also be available to companies certified under Massachusetts Life Sciences Center programs, subject to the requirements of those programs.

Eligibility

• Business corporations subject to Massachusetts corporate excise may qualify.
• Businesses must have qualified research expenses associated with research conducted in Massachusetts.
• Research activities and expenses must meet the applicable Massachusetts requirements based on the federal Section 41 framework.
• Additional requirements may apply to businesses seeking separate refundable incentives through Massachusetts Life Sciences Center programs.

Benefits

• Provides a non-refundable credit against Massachusetts corporate excise liability.
• Unused research credits may be carried forward for the applicable carryforward period.
• Eligible companies certified under Massachusetts Life Sciences Center programs may have access to separate refundable incentives, subject to program-specific requirements.