2.617 -Life Sciences Tax Incentive Program
| Item | Description | FY2009 | FY2010 | FY2011 |
|---|---|---|---|---|
| 2.617 | Life Sciences Tax Incentive Program
On June 16, 2008, "An Act Providing for the Investment in and Expansion of the Life Sciences Industry in the Commonwealth" (the Act) (St. 2008, c. 130) was passed. The Act establishes the Life Sciences Investment Program as well as the Life Sciences Tax Incentive Program pursuant to chapter 23I of the General Laws. See St. 2008, c. 130, S. 13, codified at G.L. c. 23I, S. 5(a), (d), respectively. It provides for a one billion dollar investment in the life sciences sector, including $25 million each year for 10 years for the Massachusetts Life Sciences Investment Fund established by G.L. c. 23I, S. 6(subject to yearly appropriation by the Massachusetts Legislature), and $25 million each year for 10 years in various tax incentives for qualifying life sciences companies on a competitive basis (subject to required authorizations by the Massachusetts Life Sciences Center and to approval by the Secretary of Administration and Finance). These incentives are effective from January 1, 2009 through December 31, 2018. St. 2008, c.130, S. 52-54. The various tax incentives include the following: Life Sciences Investment Tax Credit (ITC), FDA User Fees Credit, Extension of Net Operating Losses (NOLs) from 5 to 15 years, Elimination of the Throwback Provision in the Sales Factor Used in Apportioning Corporate Income, Refundable Research Credit, Life Sciences Research Credit, Deduction for Qualified Clinical Testing Expenses for Orphan Drugs, Life Sciences Companies Deemed to be Research and Development Corporations for Sales Tax Purposes, Sales Tax Exemptions for Property for Use in the Development of Certain Facilities and Utility Systems. Since the tax expenditures in this item will be subject to approval and their composition will differ from year-to-year, it is not known what proportion will be in the form of corporate tax credits as opposed to other tax expenditures. However, the Department of Revenue believes that the the largest portion of the tax expenditure will be in the form of corporate tax credits, has placed it in this section of the tax expenditure budget. Governor's FY11 Budget proposal would reduce the annual cap from $25 million to $20 million in FY2011. Origin: Origin: M.G.L. c. 62, 63, Chapter 130 of the Acts of 2008. DOR-TIR 08-23 Estimate: $20.0 |
0 | 5 | 20 |
Key:
| ORIGIN | |
| IRC | Federal Internal Revenue Code (26 U.S.C.) |
|---|---|
| M.G.L. | Massachusetts General Laws |
| U.S.C | United States Code |
| ESTIMATES | All estimates are in $ millions. |
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