Massachusetts recognizes that growing your business and investing in new jobs requires time and money. We can encourage capital investment, and in return, the ITC can reduce the cost of expansion. Additionally, the ITC includes a carry forward provision and is considered a permanent incentive.
- The Massachusetts Investment Tax Credit is available to corporations classified by the Department of Revenue as:
- Certain Research and Development Corporations
- Corporations engaged primarily in agriculture or commercial fishing
Terms and Conditions
- The ITC is three-percent of the cost (or other basis for federal income tax purposes) of qualifying tangible property acquired, constructed, reconstructed, or erected during the taxable year, after federal tax deductions are taken on the property.
- Qualifying property includes tangible personal property and other tangible property, including buildings and structural components of buildings acquired by purchase.
- Manufacturing corporations, certain research and development corporations, and corporations engaged primarily in agriculture or commercial fishing shall be allowed a credit for tangible personal property that is leased pursuant to an operating lease. If an operating lease is in place, based on statute, a lessor (or owner) is not allowed a credit at all, and the lessee is allowed a credit only for the tangible personal property, not the real property.
External Resources/Helpful links
Massachusetts Office of Business Development
10 Park Plaza, Suite 3730,
Boston, MA 02116