Massachusetts R&D Tax Credit Summary

R&D Tax Credit Available:

Yes

Eligible Entities:

C-Corporations, S-Corporations

Deadline for Tax Filing:

Due with Massachusetts Tax Return

Data Required to Compute Credit:

• Claim Period Qualified Research Expenses (QREs)
• QREs for Prior 4 Tax Years
• Gross Receipts for Prior 4 Tax Years

Credit Carryforward:

15 years

R&D Credit Summary:

The Massachusetts research credit equals:

• 5% of the current year (2015, 2016, and 2017) qualified research expenses over the base amount.
• 7.5% of the current year (2018, 2019,and 2020) qualified research expenses over the base amount.
• 10% of the current year (on or after January 1, 2021) qualified research expenses over the base amount.

Special Notes:

For taxable years beginning on or after January 1, 2015, taxpayers now have 2 options to calculate the MA R&D tax credit: Regular Method & Alternative Simplified Method.