Massachusetts R&D Tax Credit Summary

R&D Tax Credit Available

Yes

STATE

Massachusetts

NAME

Research Credit

DOES IT APPLY TO C-CORPS & PASS THROUGHS?

It applies to corporations paying excise tax under MGL c 63

DESCRIPTION

Two nonrefundable credits (Fixed Base Ratio and ASC) with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Massachusetts-based expenses.

PERCENTAGE

10% on incremental expenses for Fixed Base Ratio method.

7.5% on incremental expenses for 2020 (10% for 2021 and after) for ASC method.