Bill > S2080

This bill creates a new "super research and development tax credit" for business corporations and taxpayers in Massachusetts that are already eligible for the existing research expense tax credit. Specifically, the bill allows an additional tax credit equal to the excess of a company's current qualified research expenses over their average research spending from the previous 5 years (increased by 50%). To qualify, the research expenses must be for work conducted within Massachusetts, and the credit is limited to 50% of the taxpayer's tax liability after other credits. Companies can carry forward any unused credit for up to 5 subsequent tax years, but cannot reduce their tax liability below the previous year's amount. For corporations filing combined tax returns, credits must first be applied to the generating company's tax liability, with any excess potentially shared among group members, subject to the credit limitations. The bill aims to incentivize increased research and development investment within the state by providing a financial benefit to companies that expand their research spending.

Budget and Finance

https://malegislature.gov/Bills/194/S2080