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.
The credit isn’t available for taxes paid with respect to:
- 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.
For more information about the credit, important definitions, and details on the taxability of shipments: