The Massachusetts dairy farmer tax credit was established to offset the cyclical downturns in milk prices paid to dairy farmers and is based on the U.S. Federal Milk Marketing Order for the applicable market, such that when the U.S. Federal Milk Marketing Order price drops below a trigger price anytime during the taxable year the taxpayer will be entitled to the tax credit. The total cumulative value of the credits authorized pursuant to this section combined with section 6(o) of chapter 62 of the General Laws shall not exceed $6 million annually. The Chapter 154 of the Acts of 2018 increased the cap from $4 million.
A taxpayer who holds a certificate of registration as a dairy farmer pursuant to M.G.L. Ch. 94, sec. 16A is allowed to take a refundable tax credit based on the amount of milk produced and sold. These credits may not be sold or transferred to another taxpayer, but are refundable at 100% of face value.
Origin: M.G.L. c. 63, § 38Z
Corporate Excise Tax
Credits Against Tax
2.618
Dairy Farmers Credit
The Massachusetts dairy farmer tax credit was established to offset the cyclical downturns in milk prices paid to dairy farmers and is based on the U.S. Federal Milk Marketing Order for the applicable market, such that when the U.S. Federal Milk Marketing Order price drops below a trigger price anytime during the taxable year the taxpayer will be entitled to the tax credit. The total cumulative value of the credits authorized pursuant to this section combined with <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section6" target="_blank">section 6(o) of chapter 62</a> of the General Laws shall not exceed $6 million annually. The <a href="https://malegislature.gov/Laws/SessionLaws/Acts/2018/Chapter154" target="_blank">Chapter 154 of the Acts of 2018</a> increased the cap from $4 million.<BR><BR>A taxpayer who holds a certificate of registration as a dairy farmer pursuant to <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter94/Section16A" target="_blank">M.G.L. Ch. 94, sec. 16A</a> is allowed to take a refundable tax credit based on the amount of milk produced and sold. These credits may not be sold or transferred to another taxpayer, but are refundable at 100% of face value.
<a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38z" target="_blank">M.G.L. c. 63, § 38Z</a>
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