Harbor Maintenance Tax Credit

This credit is not active. Repealed by St. 2021, c. 68, sec. 4.

Updated: June 3, 2022

Overview

The Harbor Maintenance Tax Credit may be available to corporate excise taxpayers who paid the federal harbor maintenance tax (HMT). The HMT is a federal tax on the use of ports in Massachusetts. 

Eligibility

The credit isn’t available for taxes paid with respect to:

• Passengers
• The shipment of bulk cargo, or
• The shipment of any other cargo or item of commerce not included in the meaning of "break-bulk" or "containerized cargo.”

To show the HMT was paid, taxpayers must retain documentation including:

• U.S. Customs Form 349
• Customs Form 7501.

Minimum excise, maximum amount of credits, and carryover

The HMT credit may not reduce the corporate excise due below $456. The credit isn’t subject to the 50% limitation of Massachusetts General Laws chapter 63, section 32C.

Any unused credit may be carried forward for the next 5 tax years.

Additional information

For more information about the credit, important definitions, and details on the taxability of shipments:

• Massachusetts General Laws chapter 63, section 38P
• U.S. Customs and Border Protection
• Technical Information Release 97-4
• Schedule HM.