|Credit||Calculation of 2014 Credit||Additional Information Required||Refundable Not Refundable||Carryover|
|Brownfields Credit for Rehabilitation of Contaminated Property|
Taxpayers are allowed a transferable credit for incurring eligible costs to remediate
The amount of the credit is either 50% or 25% of the “net response and removal
The maximum amount of credit that may be taken in any taxable year may not exceed
Five Succeeding Years
|Certified Housing Development Credit|
A tax credit is available to Individuals or entities for
The DHCD may award a taxpayer a credit of up to ten percent of the costs of
|Five Succeeding Years|
|Community Investment Credit||Effective January 1, 2014, a credit is allowed equal to 50 percent of the total qualified|
investments made by a taxpayer in a “community partner,” i.e., a
“community development corporation” or a “community support organization,”
selected by the Department of Housing and Community Development through a
competitive process. A qualified investment must be in the form of a cash contribution
of at least $1,000. A taxpayer may invest in more than one community partner, but may
not claim more than $1,000,000 of credits in any single taxable year. A taxpayer must
claim the credit in the taxable year in which a qualified investment is made.
|Conservation Land Tax Credit||A tax credit is allowed for qualified donations of certified land to a public or private conservation agency. The credit is equal to 50% of the fair market value of the qualified donation not to exceed $75,000 ($50,000 for qualified donations made prior to August 13, 2014). This credit is available to both individuals and corporations and is refundable but not transferable.|| Certificate|
|Dairy Farmer Tax Credit||Taxpayers who hold certificates of registration as dairy farmers pursuant to|
G.L. c. 94, § 16A are allowed a refundable tax credit based on the amount of
milk produced and sold.
When the U.S. Federal Milk Marketing Order price drops below a trigger price
anytime during the taxable year, the taxpayer will be entitled to the tax credit.
The dairy farmer tax credit as originally enacted was 90% refundable. Effective
July 1, 2009, the dairy farmer tax credit is now 100% refundable. The total
amount of credits granted cannot exceed $4 million in any year.
|Earned Income Tax Credit (EITC) – Refundable Credit|
An earned income credit is available to certain low-income individuals who have
Taxpayers must qualify for and claim the federal earned income credit allowed under Internal Revenue Code § 32 as amended and in effect for the taxable year.
Taxpayers may claim the credit even though they neither owe any taxes nor have any income taxes withheld from their pay. To receive the credit, taxpayers must file tax returns and claim the credit. The Massachusetts refundable credit is 15% of the computed federal credit.
|Economic Development Incentive Program Credit (EDIPC) (Projects certified on or after January 1, 2010)|
Taxpayers who participate in a "certified project" as defined in M.G.L. c. 23A, s. 3A
For projects certified on or after January 1, 2010, the EDIPC is available only to the
Ten Succeeding Years, or Five Year Limitation Depending on Circumstances
|Economic Opportunity Area Credit (EOAC) (Projects Certified Prior to January 1, 2010)||Taxpayers who participate in a “certified project” as defined in M.G.L. c. 23A are allowed a credit against their tax liabilities equal to 5% of the cost of qualifying property purchased for business use within an economic opportunity area (EOA).||Schedule EOAC||Not Refundable||Ten Succeeding Years, or Five Year Limitation Depending on Circumstances|
|Employer Wellness Program Credit||Effective for tax years beginning on or after January 1, 2013, a Massachusetts business that employs 200 or fewer workers may qualify for a tax credit for up to 25% of the cost of implementing a “certified wellness program” for its employees.||Certificate Number||Not Refundable||??|
|Farming and Fisheries Tax Credit||Effective January 1, 2015, a tax credit is available to Individuals who are primarily engaged in agriculture, farming or commercial fishing. The amount of the credit is 3% of the cost or other basis for federal income tax purposes of qualifying property acquired, constructed or erected during the tax year. Qualifying property is defined as tangible personal property and other tangible property including buildings and structural components thereof which are located in MA, used solely in farming, agriculture or fishing, and are depreciable with a useful life of at least 4 years.||Not Refundable|
|Motion picture production companies may claim two different tax credits against either their personal income tax or corporate excise liabilities. Each credit has its own qualification requirements and taxpayers may qualify for and claim both credits.||Certificate|
Five Succeeding Years
|Film Incentive Credit (Payroll and Production Expense Credits Not Used)||The payroll and production expense credits are refundable with certain limitation.|
At the written request of the taxpayer, the credits will be applied against
taxpayer's liability, first reduced by any other available credits; any film credit
remaining will be refunded at 90 percent.
|Under the Massachusetts Historic Rehabilitation Tax Credit program, a certified |
rehabilitation project of a qualified historic structure is eligible to receive up to 20%
of qualified rehabilitation expenditures in state tax credits. The credit is not to exceed
$50,000,000 per year.
|Income Tax Paid to Another Jurisdiction Credit|
Massachusetts residents and part-year residents are allowed a credit for taxes
The Credit is allowed for taxes paid to:
The credit is for tax due to another jurisdiction; it is not for:
|Schedule Z, Part 2, Line 11 Worksheet, Form 1 Instructions, Pages 21-22||Not Refundable||None|
|Lead Paint Removal Credit|
Massachusetts allows a credit to any owner of MA residential property who has
The credit is the lesser of: 1) the cost of removing or covering any paint, plaster,
|Life Science Company Credits|
Certain credits may be available to certified life sciences companies only to the extent authorized pursuant to the Life Sciences Tax Incentive Program:
Investment Tax Credit
FDA User Fees Credit
|Life Science Credit - Alternative Refundable Amount|
There are different credits which the Massachusetts Life Sciences may authorize a
If a life sciences ITC exceeds the tax otherwise due under the corporate excise,
Taxpayers may use the FDA user fees credit to reduce their tax to zero; 90% of the
|Limited Income Credit (LIC)||Taxpayers who do not qualify for No Tax Status (NTS), but whose Massachusetts|
Adjusted Gross Income does not exceed certain thresholds, may qualify for the
Limited Income Credit (LIC).
This credit involves an alternative tax calculation that can result in a significant
tax reduction for taxpayers whose income is close to the NTS threshold.
|Residents - Form 1, Line 27 Mass. AGI Worksheet and Form 1, Line 29 Worksheet (pages 12-13) |
Nonresidents and Part-Year Residents - Schedule NTS-L-NR/PY
|Low Income Housing Credit||Taxpayers allocated a federal low-income housing credit for the building or|
development of low-income housing under IRC § 42 may also be eligible for a
state credit based on the credit amount allocated to a low-income housing
project that the taxpayer owns.
Building Identification Credit
|Medical Device Tax Credit||a medical device company may claim a credit equal to 100% of the user fees|
actually paid by it to the United States Food and Drug Administration ("USFDA")
during the taxable year for which the tax is due for pre-market submissions
(e.g., applications, supplements, and 510(k) submissions) to market new
technologies, developed or manufactured in Massachusetts..
|Five Succeeding Years|
|Real Estate Tax Credit for Persons Age 65 and Older (known as the Circuit Breaker Credit)|
Certain taxpayers age 65 or older may claim a credit for the real estate taxes
Eligible taxpayers may claim a credit equal to the amount by which their
For tax year 2014, the maximum credit allowed is $1,050
To be eligible for the credit for the 2014 tax year:
|Schedule CB and Worksheets|
|Repair or Replacement of Failed Cesspool or Septic System Credit (Title V)|
Any owner of residential property located in Massachusetts who is not a
The amount of credit in the aggregate cannot exceed $6,000 but maximum amount of credit claimed in any tax year cannot exceed $1,500. The computation of the credit
Five Succeeding Years
|Solar Wind and Energy Credit||Massachusetts allows an energy credit for expenditures incurred for|
certain renewable source items to any owner or tenant of residential property
located in the Commonwealth who is not a dependent of another
taxpayer and who occupies the property as his or her principal residence.
The amount of credit allowed equals the lesser of: 1) 15% of the net
expenditure for a renewable energy source property; or 2) $1,000.
Three Succeeding Years