CreditCalculation of 2013 CreditAdditional Information RequiredRefundable Not RefundableCarryover
Brownfields Credit for Rehabilitation of Contaminated Property

Taxpayers are allowed a transferable credit for incurring eligible costs to remediate 
a hazardous waste site on property used for business purposes and located within 
an economically distressed area. 

The amount of the credit is either 25% or 50% of  the “net response and removal 
costs” as that term is defined in G.L. c. 21E, § 2, depending upon whether an 
activity or use limitation has been imposed. 

The maximum amount of credit that may be taken in any taxable year may not exceed 
50% of the tax liability for the taxable year.

Form BCA, Brownsfields Credit Application pdf format of Form BCA
 

 

Not
Refundable

 

Five Succeeding Years

 

Certified Housing Development Credit

Effective January 1, 2011, a new tax credit is available to Individuals or entities for 
certain qualified rehabilitation expenditures with respect to a certified housing 
development project. The credit is available to a taxpayer only to the 
extent awarded by the Massachusetts Department of Housing and Community 
Development (DHCD.)

The DHCD may award a taxpayer a credit of up to ten percent of the costs of 
qualified substantial rehabilitation expenditures of the market rate units within the 
certified housing development projects.

 Not
Refundable
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.  
Certificate
Number
RefundableNone
Conservation Land Tax Credit Effective for taxable years beginning on or after January 1, 2011, 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 $50,000. This credit is available to both individuals and corporations
and is refundable but not transferable.
 Certificate
Number
RefundableNone
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.
 Certificate
Number

Refundable

None

Earned Income Tax Credit (EITC)

An earned income credit is available to certain low-income individuals who have
earned income and meet federal requirements for the federal earned income credit.

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.

 RefundableNone
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 
are allowed a credit against their tax liabilities up to a specified percentage of the cost 
of qualifying property.

For projects certified on or after January 1, 2010, the EDIPC is available only to the 
extent awarded by the Economic Assistance Coordination Council (EACC.)

Credit Amount:

  • For certified expansion projects and certified enhanced expansion projects,
    the credit awarded may be up to ten percent of the cost of qualifying property;
  • For certified manufacturing retention projects, the credit awarded may be as
    high as forty percent of the cost of such property. Upon filing a return and complying with any additional procedures, any credit that exceeds the excise for the taxable year will be refunded to the taxpayer.

  

Not Refundable

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 pdf format of Schedule EOAC
Not RefundableTen 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. The credit is set to expire on December 31, 2017.Certificate NumberNot 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.   

Film Incentive Credit

 

For taxable years beginning on or after January 1, 2006 and before
January 1, 2023, 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
Number

Not
Refundable

Five Succeeding Years

Film Incentive Credit (Credits Not Used) For film credit applications that are received on or after January 1, 2007,
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.

Schedule RFC pdf format of Schedule RFC

Refundable

None

Historic Rehabilitation Credit  

 

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.

The Commissioner, in consultation with the Massachusetts Historical Commission, 
is authorized to allocate credits, for the 6-year period beginning January 1, 2006, 
and ending December 31, 2011. Effective July 1, 2010, this period 
has been extended to December 31, 2017.

Certificate 
Number

Not
Refundable

 

Income Tax Paid to Another Jurisdiction Credit

Massachusetts residents and part-year residents are allowed a credit for taxes
due any other jurisdiction. The credit is available only on income reported and taxed
on a Massachusetts return.

The Credit is allowed for taxes paid to:

  • other states in the U.S.;
  • any territory or dependency of the U.S., (including Puerto Rico, the Virgin Islands, Guam, the District of Columbia; and/or
  • the Dominion of Canada or any of its provinces. The amount must first be reduced by an amount allowed as a federal Foreign Tax Credit on U.S. Form 1116. The allowable federal credit must be deducted whether or not claimed;
  • New Hampshire for business profits tax which is considered an income tax
  • District of Columbia Unincorporated Business Franchise Tax (UBT)

The credit is for tax due to another jurisdiction; it is not for:

  • taxes paid to the U.S. government;
  • any city or local tax;
  • taxes paid to a foreign country other than Canada;
  • interest and penalties paid to another jurisdiction; and
  • excise, property tax or franchise tax.
Schedule Z, Part2, Line 11 Worksheet, Form 1 Instructions, Page 22 pdf format of Form 1 Instructions
Not RefundableNone
Lead Paint Removal Credit

Massachusetts allows a credit to any owner of MA residential property who has 
paid for deleading (covering or removing lead paint) of such property for purposes 
of bringing it into either full compliance or interim control pending full compliance.

The credit is the lesser of: 1) the cost of removing or covering any paint, plaster, 
or other structural accessible materials containing dangerous levels of lead; or $1,500.

Schedule LP pdf format of Schedule LP

 

Not
Refundable

Seven Succeeding
Years

Life Science Company Credits

For taxable years beginning on or after January 1, 2009, 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 
an Investment Tax Credit (ITC) equal to 10% of the cost of qualifying property 
acquired, constructed or erected during the taxable year and used exclusively in 
the Commonwealth.

FDA User Fees Credit
A credit for user fees paid on or after June 16, 2008 to the U. S. Food and 
Drug Administration (U.S.F.D.A.) upon submission of an application to manufacture 
a human drug in the Commonwealth. This credit is equal to100% of  the user fees 
actually paid by the taxpayer. To be eligible for the credit, more than 50% of the 
research and development costs for the drug must have been incurred in Massachusetts.

Research Credit
A new credit to provide qualifying companies with a means to obtain a research 
credit for certain expenditures not qualifying for the existing research credit under 
c. 63, § 38M. The credit is generally calculated in the same manner as the research 
credit under section 38M.

   
Life Science Credit - Alternative  

There are different credits which the Massachusetts Life Sciences may authorize a 
taxpayer to have refunded in lieu of carrying forward such credit to a future year.

If a life sciences ITC exceeds the tax otherwise due under the corporate excise, 
as applicable, 90% of the balance of  such credit may, at the option of the taxpayer, 
be refundable to the taxpayer for the tax year in which the qualified property giving 
rise to such credit is placed in service.

Taxpayers may use the FDA user fees credit to reduce their tax to zero; 90% of the 
balance of credit remaining is refundable. The deduction otherwise allowable for 
user fees qualifying for the credit is disallowed.

 

Refundable

None

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) pdf format of Form 1 Instructions

 Nonresidents and Part-Year Residents - Schedule NTS-L-NR/PY pdf format of Schedule NTS-L-NR/PY

 

None

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

Not
Refundable

None

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..
 Certificate Number

Not Refundable

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 
paid on the residential property they own or rent in Massachusetts that is used 
as their principal residence.

Eligible taxpayers may claim a credit equal to the amount by which their 
property tax payments (for renters, 25% of rent) exceed 10% of their 
"total income" for that tax year.

For tax year 2013, the maximum credit allowed is $1,030

To be eligible for the credit for the 2013 tax year:

  • the taxpayer or spouse, if married filing jointly, must be 65 years of age or older at the close of the taxable year;
  • the taxpayer must own or rent residential property in Massachusetts and occupy the property as his or her principal residence;
  • the taxpayer's "total income" cannot exceed $55,000 for a single filer who is not the head of a household, $69,000 for a head of household, or $82,000 for taxpayers filing jointly; and
  • for homeowners, the assessed valuation of the homeowner's personal residence as of January 1, 2013, before residential exemptions but after abatements, cannot exceed $700,000.
    Schedule CB, Worksheets and Schedule CB pdf format of Schedule CB

Refundable

None

Repair or Replacement of Failed Cesspool or Septic System Credit (Title V)

Any owner of residential property located in Massachusetts who is not a 
dependent of another taxpayer and who occupies the property as his or 
her principal residence is allowed a credit for the expenses incurred to:

1) repair or replace a failed cesspool or septic system in compliance with 
the sewer system requirements of the State Environmental Code Tile V; or 
2) connect to a municipal sewer systems pursuant to a federal court order, 
administrative consent order, state court order, consent decree, or 
similar mandate.

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 
is 40 percent (.40) of available actual costs, not to exceed $15,000 ($15,000 
x .40 = $6,000).

Schedule SC pdf format of Schedule SC

 

Not
Refundable

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.
Schedule EC pdf format of Schedule EC

Not
Refundable

Three Succeeding Years