Mintz Levin’s Tax Credits Guide

Public Resources for Massachusetts Entrepreneurs



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MA Research & Development Tax Credit 

Application Deadline: Open application.

Funding Opportunity: This tax incentive was designed to remove any obstacles to research and development investment and spur growth and innovation. It is divided into two categories: (1) A ten-percent credit designed for Qualified Expenses which are defined as any research expense incurred which would qualify for the Federal R&D tax credit; (2) A fifteen-percent credit available to Basic Research Payments for any costs related to donations and contributions made to research organizations such as hospitals and universities. The R&D tax credit can be taken in conjunction with the state's Investment Tax Credit of three-percent (or five-percent as part of the Economic Development Incentive Program). The R&D tax credit may reduce the corporation's tax to the minimum tax of $456.

Requirements:

  • Research & Development must be conducted in MA.
  • Companies must be foreign or domestic corporations subject to the corporate excise under Chapter 63 of the MA General Laws.

Industry Specific: No.