Bill > S1993

This bill proposes to create a "super research and development tax credit" for businesses in Massachusetts. The key provisions are: 1. Businesses that qualify for the existing research expense tax credit under Section 38M of Chapter 63 can claim an additional credit equal to the excess of their qualified research expenses for the year over a "super credit base amount" (the average of their qualified research expenses from the previous 5 years, increased by 50%). 2. The new credit is limited to 50% of the business's tax due after applying any other credits. 3. Businesses can carry over any unused portion of the credit for up to 5 subsequent years, but the credit used in any one year cannot exceed 50% of the business's tax due. 4. The credit cannot be used to reduce the business's tax liability below the amount paid in the previous year. 5. For businesses filing combined returns, the credit generated by one member can be applied against the tax due of another member, as long as the limitations are met. The goal of this bill is to provide a significant tax incentive for businesses to increase their research and development activities in Massachusetts.

Budget and Finance

https://malegislature.gov/Bills/192/S1993