Bill > H3168

This bill aims to expand the existing sales tax exemption for research and development (R&D) activities in Massachusetts by broadening the types of entities that can qualify for the exemption. Currently, the law allows manufacturing or research and development corporations to be exempt from sales tax on certain purchases. The bill would extend this exemption to other business structures like limited liability companies (LLCs), partnerships, and additional entities primarily engaged in R&D activities. 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 changes will take effect on January 1, 2026, and will apply to qualifying purchases made on or after that date. This legislative update is designed to support and incentivize research and development activities across a wider range of business structures in the state.

Budget and Finance

https://malegislature.gov/Bills/194/H3168