MASSACHUSETTS DEPARTMENT OF REVENUE REGULATION FACT SHEET

TITLE: 830 CMR 64H.6.4: Research and Development

REGULATORY HISTORY: Regulation promulgated 11/26/82 (old number 64H.08). New Regulation promulgated: 11/16/07

SUMMARY OF REGULATION: This regulation repeals and replaces 830 CMR 64H.6.4: Research and Development, which has been rendered obsolete by legislative amendments to the definitions of domestic and foreign research and development corporations provided in G.L. c. 63, §§ 38C and 42B. See St. 2003, c.141, §§ 27, 29. This regulation in particular:

  • explains the sales tax exemptions in G.L. c. 64H, §§ 6(r), (s) to purchases of tangible personal property used directly and exclusively in research and development by research and development corporations and manufacturing corporations;
  • explains the requirements for qualification as domestic and foreign research and development corporations under G.L. c. 63, §§ 38C, 42B, respectively;
  • addresses the scope of activities that constitute research and development;
  • addresses the types of receipts and expenditures that qualify (and do not qualify) for purposes of meeting the statutory tests for qualification as a research and development corporation;
  • provides rules that apply to sourcing receipts and expenditures for corporations that perform research and development both in Massachusetts and elsewhere;
  • discusses the "used directly and exclusively in research and development" requirement of G.L. c. 64H, sections 6(r) and (s);
  • discusses availability of certain credits and other exemptions available to qualifying research and development corporations.

REASON FOR CHANGE: Legislative amendments to G.L. c. 63, §§ 38C and 42B by St. 2003, c. 141, §§ 27-29 rendered regulation obsolete, pursuant to authority granted the Commissioner by G.L. c. 14, § 6(1); G.L. c. 62C, § 3.

PREPARED BY:
Massachusetts Department of Revenue
Rulings and Regulations Bureau
100 Cambridge Street, 7 th floor
Boston, Massachusetts 02114
(617) 626-3250
FAX: (617) 626-3290