2015 Massachusetts Research Tax Credit Problem

Don’t make this mistake…

If you are claiming the Massachusetts R&D credit for 2015 on Schedule RC and planning to use the new “alternative simplified” credit calculation, beware that the Commonwealth’s online instructions for Line 14 contains a significant error.

The online instructions for Line 14 of Schedule RC incorrectly states, “select the 5% oval and enter the average of the qualified research expenses for the last 3 taxable years.”

mass_rc_form_2015_error

The Correct Instruction for Line 14:
If claiming the “alternative simplified” credit calculation on Schedule RC for tax year 2015, select the 5% oval (on Line 16) and then enter the “base amount” value by computing the figure as follows:
                              Multiply the average of the qualified research expenses for the prior 3 taxable years by 50%.

mass_credit_example_2015


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