Related to:
Technical Information Release

Technical Information Release TIR 99-8: The Effect of Cargill, Inc., on the Investment Tax Credit Under G.L. c. 63, § 31A

Date: 04/16/1999
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Corporate Excise

Under the corporate excise statute, an investment tax credit equal to 1% (or 3% up until July 1, 1999) of the cost of certain tangible property, including buildings, is available to corporations "primarily engaged in agriculture or commercial fishing." G.L. c. 63, § 31A. In Commissioner of Revenue v. Cargill, Inc., 429 Mass. 79, 706 N.E.2d 625 (1999), decided March 1, 1999, the Supreme Judicial Court held that a foreign corporation principally engaged within Massachusetts in the distribution of petroleum products nonetheless qualified for the investment tax credit on the basis of its substantial agricultural activities conducted outside of Massachusetts. The Court held that the language of the statute was clear and did not require that the corporation's agricultural activity be conducted within the Commonwealth if, viewing its activities as a whole, the corporation was primarily engaged in agriculture.

Accordingly, under the Cargill decision, the determination of whether a corporation is "primarily engaged in agriculture or commercial fishing" for purposes of G.L. c. 63, § 31A, must include a review of both the corporation's in-state and out-of-state activities.

Frederick A. Laskey,
Commissioner of Revenue

April 16, 1999
TIR 99-8

Referenced Sources:

Feedback

Did you find what you were looking for on this webpage? * required
We use your feedback to help us improve this site but we are not able to respond directly. Please do not include personal or contact information. If you need a response, please locate the contact information elsewhere on this page or in the footer.
We use your feedback to help us improve this site but we are not able to respond directly. Please do not include personal or contact information. If you need a response, please locate the contact information elsewhere on this page or in the footer.

If you need to report child abuse, any other kind of abuse, or need urgent assistance, please click here.

Tell us what you think