Origin: Manufacturing corporations, and corporations engaged primarily in research and development, agriculture, or commercial fishing are allowed to claim an investment tax
credit (ITC) of 3% of the cost of qualifying tangible property. See M.G.L. c. 63, § 31A. Qualifying tangible property includes tangible personal property and other tangible property, including buildings and certain components of buildings, but does not include motor vehicles. Both owners and lessees of qualifying tangible property can claim the credit. The property must be depreciable for federal tax purposes under Code § 167 and have a useful life of four years or more. The property must be used in Massachusetts (except for agricultural equipment, which can be used anywhere ).
The amount of ITC allowed to any corporation in any one taxable year cannot exceed fifty percent of the taxpayer's corporate excise due for the taxable year. The credit is neither transferable nor refundable.
A corporation that does not use the full amount of ITC generated in a taxable year because the credit exceeded its excise for the taxable year may carry over the credit, as reduced from year to year, for three years. Any portion of ITC not used in a taxable year because of the fifty percent limitation may be carried over, as reduced from year to year, indefinitely.
A portion of the credit is subject to a recapture tax if the qualifying property is sold or otherwise transferred before the end of its useful life, unless the property was in qualified use for more than twelve years.
Origin: M.G.L. c. 63, §31A (i), (j)
Corporate Excise Tax
Credits Against Tax
2.602
Investment Credit
Manufacturing corporations, and corporations engaged primarily in research and development, agriculture, or commercial fishing are allowed to claim an investment tax<BR><BR>credit (ITC) of 3% of the cost of qualifying tangible property. See M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section31a" target="_blank">c. 63, § 31A</a>. Qualifying tangible property includes tangible personal property and other tangible property, including buildings and certain components of buildings, but does not include motor vehicles. Both owners and lessees of qualifying tangible property can claim the credit. The property must be depreciable for federal tax purposes under Code <a href="https://www.law.cornell.edu/uscode/text/26/167" target="_blank">§ 167</a> and have a useful life of four years or more. The property must be used in Massachusetts (except for agricultural equipment, which can be used anywhere ).<BR><BR>The amount of ITC allowed to any corporation in any one taxable year cannot exceed fifty percent of the taxpayer's corporate excise due for the taxable year. The credit is neither transferable nor refundable.<BR><BR>A corporation that does not use the full amount of ITC generated in a taxable year because the credit exceeded its excise for the taxable year may carry over the credit, as reduced from year to year, for three years. Any portion of ITC not used in a taxable year because of the fifty percent limitation may be carried over, as reduced from year to year, indefinitely.<BR><BR>A portion of the credit is subject to a recapture tax if the qualifying property is sold or otherwise transferred before the end of its useful life, unless the property was in qualified use for more than twelve years.
M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section31a" target="_blank">c. 63, §31A (i), (j)</a>
88.1
91.0
94.0
97.0
100.2
