Bill > S2000

This bill extends existing sales tax exemptions for research and development (R&D) activities to a broader range of business entities beyond just manufacturing corporations. Specifically, the legislation allows limited liability companies, partnerships, and other entities that primarily engage in research and development to qualify for a sales tax exemption, provided they file Massachusetts tax returns. The Department of Revenue will be required to issue guidance to help these non-corporate entities apply for the exemption, which may involve submitting an annual statement confirming their primary R&D focus. The bill will take effect on January 1, 2026, and will apply to qualifying purchases made on or after that date. By broadening the scope of eligible businesses, this bill aims to support and incentivize research and development activities across various types of business structures in Massachusetts, potentially encouraging innovation and economic growth in the state's R&D sectors.

Budget and Finance

https://malegislature.gov/Bills/194/S2000