Origin: The Massachusetts historic rehabilitation tax credit ("MHRTC") is a credit equal to a percentage, not to exceed 20%, of the qualified rehabilitation expenditures made by a taxpayer in rehabilitating a qualified historic structure which has received final certification by the Massachusetts Historical Commission ("MHC") and has been placed in service. The MHRTC is available to both chapter 62 (personal income) and chapter 63 (corporate) taxpayers. Unused portions of the MHRTC may be carried forward for up to 5 years and may be transferred or sold to another taxpayer, but are not refundable. The MHRTC cannot be used to reduce the corporate excise due below the minimum excise provided by G.L. c. 63, § 39(b), currently $456. The allowable corporate credit is not subject to the 50% limitation of G.L. c. 63, § 32C. If, before the end of the five-year period beginning on the date on which the qualified historic structure received final certification and was placed in service, the taxpayer disposes of its interest in the structure, the credit will be subject to recapture and the taxpayer's tax for the taxable year in which the disposition occurs will be increased by the recapture amount. The original annual cap was set at $15 million per year, effective for taxable years beginning January 1, 2005 and ending December 31, 2009. Then it increased to $50 million per year, for taxable years beginning January 1, 2017 and ending December 31, 2022. However, it soon again changed to $55 million per year, effective for taxable years beginning January 1, 2018 and ending December 31, 2022. The FY22 Budget extend the credit to tax years ending on or before December 31, 2027. Recently, for taxable years beginning on or after January 1, 2024, the annual cap has been increased to $110 million. The credit has been extended further to taxable years ending on or before December 31, 2030. Effective August 13, 2014, taxpayers subject to the personal income tax imposed by G.L. c. 62 that acquire a qualified historic structure may transfer MHRTC awards subject to criteria established by the MHC. In the case of a multi-phased project MHRTC awards may be transferred for any phase of the project that meets the MHC's criteria. Effective August 10, 2016, MHRTC awards also may be transferred by taxpayers subject to the corporate excise under G.L. c. 63. See TIR 15-6 and 16-15.
Origin: M.G.L c. 63, §38R
Corporate Excise Tax
Credits Against Tax
2.610
Historic Buildings Rehabilitation Credit
The Massachusetts historic rehabilitation tax credit ("MHRTC") is a credit equal to a percentage, not to exceed 20%, of the qualified rehabilitation expenditures made by a taxpayer in rehabilitating a qualified historic structure which has received final certification by the Massachusetts Historical Commission ("MHC") and has been placed in service. The MHRTC is available to both <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62" target="_blank">chapter 62</a> (personal income) and <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63" target="_blank">chapter 63</a> (corporate) taxpayers. Unused portions of the MHRTC may be carried forward for up to 5 years and may be transferred or sold to another taxpayer, but are not refundable. The MHRTC cannot be used to reduce the corporate excise due below the minimum excise provided by <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section39" target="_blank">G.L. c. 63, § 39(b)</a>, currently $456. The allowable corporate credit is not subject to the 50% limitation of <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section32c" target="_blank">G.L. c. 63, § 32C</a>. If, before the end of the five-year period beginning on the date on which the qualified historic structure received final certification and was placed in service, the taxpayer disposes of its interest in the structure, the credit will be subject to recapture and the taxpayer's tax for the taxable year in which the disposition occurs will be increased by the recapture amount. The original annual cap was set at $15 million per year, effective for taxable years beginning January 1, 2005 and ending December 31, 2009. Then it increased to $50 million per year, for taxable years beginning January 1, 2017 and ending December 31, 2022. However, it soon again changed to $55 million per year, effective for taxable years beginning January 1, 2018 and ending December 31, 2022. The FY22 Budget extend the credit to tax years ending on or before December 31, 2027. Recently, for taxable years beginning on or after January 1, 2024, the annual cap has been increased to $110 million. The credit has been extended further to taxable years ending on or before December 31, 2030. Effective August 13, 2014, taxpayers subject to the personal income tax imposed by G.L. c. 62 that acquire a qualified historic structure may transfer MHRTC awards subject to criteria established by the MHC. In the case of a multi-phased project MHRTC awards may be transferred for any phase of the project that meets the MHC's criteria. Effective August 10, 2016, MHRTC awards also may be transferred by taxpayers subject to the corporate excise under <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63" target="_blank">G.L. c. 63.</a> See TIR 15-6 and 16-15.
M.G.L <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38r" target="_blank">c. 63, §38R</a>
32.1
33.4
38.7
73.3
84.8
