303.1. Applying for Manufacturing Status.
303.2. Additional Responsibilities.
303.3. Appealing Denial of Manufacturing Status.
303.4. Review, Revocation of Status.
303. Manufacturing Corporation Status
A domestic or foreign corporation registered to do business in the Commonwealth may apply to the Department of Revenue for manufacturing corporation status. See 830 CMR 58.2.1. An LLC taxed as a corporation may apply for manufacturing corporation status; however, an LLC operating as a partnership may not apply for manufacturing corporation status. See DD 00-4.
Corporations classified as manufacturing corporations are entitled to an exemption of all their machinery from local property tax. The exemption applies whether or not the machinery is used directly in manufacturing.
A manufacturing corporation is also entitled to an investment tax credit under G.L. c. 63, § 31A, and an exemption from sales and use tax for certain property used in manufacturing or in research and development under G.L. c. 64H, §§ 6(r) and (s).
303.1. Applying for Manufacturing Status
Corporations that are newly organized or registered and have manufacturing activities in their Articles of Organization should request from DOR Form 355Q, Statement Relating to Manufacturing Activities. In order to apply for manufacturing corporation status, the corporation must send DOR at the address given below a completed Form 355Q, making sure that the corporation's name, address, date of organization and federal identification number are accurate. Form 355Q must be signed by an officer of the corporation. See 830 CMR 58.2.1(7). Incomplete applications will be returned to the corporation without review.
A new corporation must file its application with the Department of Revenue on or before January 31 of the calendar year for which it seeks manufacturing corporation classification. Applications received after January 31 will be reviewed for classification for the following calendar year. However, if an application is postmarked by the United States mail on or before January 31 but arrives at DOR after that date, it will be considered timely filed.
DOR's review of a corporation's application for manufacturing classification may call for more information than is included in the completed Form 355Q. DOR may need to examine tax returns, books and records and/or to inspect the facilities for which the exemption is requested. See 830 CMR 58.2.1(7)(b)3.
On or after April 1 of each year, DOR publishes a corporation's list or a supplement thereof containing the names and classifications of every corporation subject to the Massachusetts corporate excise. Corporations determined by DOR to be engaged in manufacturing in Massachusetts on January 1 of that calendar year are classified on the list as manufacturing corporations. The corporation's list is mailed to all boards of assessors in Massachusetts to be used in assessing local property taxes.
303.2. Additional Responsibilities
A manufacturing corporation must reapply for manufacturing corporation status if it 1) changes its name, 2) undergoes a merger or consolidation, 3) is revived as a corporation after dissolution, 4) reregisters with the Secretary of State after withdrawing from Massachusetts, or 5) undergoes a material change in its activities.
303.3. Appealing Denial of Manufacturing Status
If DOR intends to deny a manufacturing classification request, the Manufacturing Classification Unit will so notify the corporation. The corporation may then either request a conference at the Office of Appeals or, after the classification request is denied, file an appeal with the Appellate Tax Board.
A predenial request for a conference must be made within 30 days of the notice. See AP 628. However, the request for a conference with the Office of Appeals does not extend the time for filing an appeal with the Appellate Tax Board.
Such appeal must be received by the Board on or before April 30 of the year for which classification is sought or within 30 days after the date DOR sends its AP 303.1 list of manufacturing corporations to the local boards of assessors ( See AP 303.1, above)-- whichever is later. See 830 CMR 58.2.1(7). For more information on this appeal process, see AP 629 or write to the Appellate Tax Board, 100 Cambridge Street, 2nd Floor, Boston, MA 02114.
303.4. Review, Revocation of Status
DOR may review a corporation's manufacturing classification at any time. In the event DOR determines the corporation is no longer engaged in manufacturing, it will send the corporation a notice of revocation and a copy to the local board of assessors. See 830 CMR 58.2.1(9). See AP 303.3, above, for appeal information.
Errors delay processing. Double check Form 355Q to see that the name, address, federal i.d. number and date of organization are correct. Also, make sure that an officer of the corporation has signed in the appropriate place.
For more information contact:
Massachusetts Department of Revenue
Filing Enforcement Bureau
Manufacturing Corporations Unit
200 Arlington Street, Room 4300
Chelsea, MA 02150
Phone (617) 887‑6980
G.L. c. 63, §§ 31A, 38C, 42B
G.L. c. 64H, §§ 6(r), 6(s)
830 CMR 58.2.1
830 CMR 58.2.1(7)
830 CMR 58.2.1(7)(b)3
830 CMR 2.1(9)
AP 628, Resolution of Disputes at the Office of Appeals
AP 629, Appeals from Denial of Application for Abatement - Appellate Tax Board
Form 355Q, Statement Relating to Manufacturing Activities