Mass. Gen. Laws ch. 62 § 6
Current through Chapter 223 of the 2024 Legislative Session
The following credits shall be allowed against the tax imposed by this chapter:
In the case of dividends received out of tax-free earnings and profits of a corporate trust previously subject to tax under this chapter, shareholders of the corporate trust shall be entitled to a credit for income taxes paid to other jurisdictions on those earnings and profits, either by the corporate trust or by the shareholders, as otherwise calculated under this subsection.
As used in this section the following words shall have the following meanings:
Any business which (a) has one or more full-time equivalent employees unrelated to its owners or partners but no more than fifty of such employees calculated on an average annual basis, (b) in any period of three consecutive years beginning after December thirty-first, nineteen hundred and eighty-four and before April twenty-first, nineteen hundred and eighty-eight makes no expenditure for the full or partial payment of premiums for a health insurance plan covering any of its then employees, and (c) makes qualifying health insurance premium expenditures for a health insurance plan covering its employees in each year beginning after such three year period, including any year in which a credit is taken pursuant to this section, shall be allowed a credit against its income tax due under this chapter in two consecutive tax years.
The amount of such credit in the first tax year in which it is taken shall be twenty per cent of the entire amount of the qualifying health insurance premium expenditure made by such business in such tax year. The amount of such credit in the second tax year in which it is taken shall be ten per cent of the entire amount of such qualifying health insurance premium expenditure made by such business in such tax year. To qualify for such credits, the health insurance premium expenditure of such business must equal at least fifty per cent of the total cost of the premiums for such health insurance plan and such health insurance plan must be available at least to all of the full-time employees of such business. For the purposes of this section, "unrelated" shall mean not having the familial relationship of spouse, mother, father, or child.
Credits pursuant to this subsection shall be available only in tax years beginning on or after January first, nineteen hundred and ninety and ending on or before December thirty-first, nineteen hundred and ninety-two. This subsection shall expire on December thirty-first, nineteen hundred and ninety-two.
Any credit allowed under this subsection may be taken only after a response action outcome statement or remedy operation status submittal has been filed with the Massachusetts department of environmental protection as set forth in the Massachusetts Contingency Plan.
"Cost-of-housing adjustment", for any calendar year, the percentage, if any, by which the average assessed value for a single-family home in the commonwealth for the preceding calendar year, as calculated by the department of revenue, exceeds the average assessed value for a single-family home in the commonwealth for calendar year 2004, as reported by the department.
"Cost-of-living adjustment", for any calendar year, the percentage, if any, by which the CPI for the preceding calendar year exceeds the CPI for calendar year 1999.
"CPI", the consumer price index for any calendar year as defined in section 1 of the Code.
"Head of household", as defined in section 2(b) of the Code.
"Real estate tax payment", the real estate tax levied pursuant to chapter 59 on the taxpayer's residence and actually paid by the taxpayer during the taxable year, including water and sewer debt service charges assessed pursuant to subsection (n) of section 21C of chapter 59, exclusive of special assessments and delinquent interest, and less any abatement granted. For owners of residential property located in communities which have not exercised the option to assess water or sewer debt service charges pursuant to subsection (n) of section 21C of chapter 59, the real estate tax payment to be considered for purposes of calculating this credit shall also include 50 per cent of the owner's water and sewer charges actually paid in the taxable year for which the credit is sought. In the case of a multi-unit dwelling, a land area in excess of one acre or a multi-purpose building or land area, the real estate tax payment, including the water and sewer charges as applicable, shall constitute that portion of the real estate tax levied and paid, and that portion of applicable water and sewer charges actually paid, on the entire building or area, which corresponds to the portion of the area or building used and occupied as the residence of the taxpayer, in accordance with procedures established by the commissioner.
"Rent constituting real estate tax payment", 25 per cent of the rent actually paid by the taxpayer, under a good faith rental agreement, for the right of occupancy of the residence during the taxable year or a portion thereof.
"Residence", the building or portion thereof, including a mobile home, owned or rented and actually occupied by the taxpayer as the taxpayer's primary dwelling during the taxable year and located within the commonwealth, together with so much of the land surrounding it, not to exceed one acre, as is reasonably necessary to the use of the dwelling as a home. A residence may consist of a part of a multi-unit or multi-purpose building.
"Taxpayer's total income", the sum of the taxpayer's Part A adjusted gross income, Part B adjusted gross income and Part C adjusted gross income, as defined in section 2, increased by, to the extent they are excluded or subtracted from adjusted gross income, the following: the total amount of income and receipts from social security, retirement, pension, or annuities, cash, but not in-kind, public assistance, tax-exempt interest and dividends, net capital losses deducted pursuant to paragraph (2) of subsection (c) of section 2, net losses in any class of Part C adjusted gross income as defined in subsection (e) of section 2, capital gains deducted pursuant to subparagraph (K) of paragraph (1) of subsection (d) of section 2, income from a partnership or trust not included therein and gross receipts from any other source other than assistance received by this subsection; and reduced by the total amount of the exemptions allowed by subparagraphs (B) and (C) of paragraph (1), subparagraphs (B) and (C) of paragraph (1A), subparagraphs (B) and (C) of paragraph (2), and paragraph (3), of subsection (b) of section 3.
"Motion picture", a feature-length film, video, digital media project, television series defined as a season not to exceed 27 episodes, or a commercial made in the commonwealth, in whole or in part, for theatrical or television viewing or as a television pilot. The term "motion picture" shall not include a production featuring news, current events, weather and financial market reports, talk show, game show, sporting events, awards show or other gala event, a production whose sole purpose is fundraising, a long-form production that primarily markets a product or service, a production containing obscene material or performances.
"Motion picture production company", a company including any subsidiaries engaged in the business of producing motion pictures, videos, television series, or commercials intended for a theatrical release or for television viewing. The term "motion picture production company" shall not mean or include any company which is more than 25 per cent owned, affiliated, or controlled, by any company or person which is in default on a loan made by the commonwealth or a loan guaranteed by the commonwealth.
"Massachusetts production expense", a production expense for the motion picture clearly and demonstrably incurred in the commonwealth.
"Principal photography", the phase of production during which the motion picture is actually filmed. The term shall not include preproduction or postproduction.
"Production expense" or "production cost", preproduction, production and postproduction expenditures directly incurred in the production of a motion picture. Said term includes wages and salaries paid to individuals employed in the production of the motion picture; the costs of set construction and operation, editing and related services, photography, sound synchronization, lighting, wardrobe, make-up and accessories; film processing, transfer, sound mixing, special and visual effects; music; location fees and the cost of purchase or rental of facilities and equipment or any other production expense as may be determined by the department of revenue to be an eligible production expense. The term shall not include costs incurred in marketing or advertising a motion picture, any costs related to the transfer of tax credits or any amounts paid to persons or businesses as a result of their participation in profits from the exploitation of the production.
"Secretary", the secretary of economic development.
"Life sciences", advanced and applied sciences that expand the understanding of human physiology and have the potential to lead to medical advances or therapeutic applications including, but not limited to, agricultural biotechnology, biogenerics, bioinformatics, biomedical engineering, biopharmaceuticals, biotechnology, chemical synthesis, chemistry technology, diagnostics, genomics, image analysis, marine biology, marine technology, medical devices, nanotechnology, natural product pharmaceuticals, proteomics, regenerative medicine, RNA interference, stem cell research and veterinary science.
"Person", a natural person, corporation, association, partnership or other legal entity.
"Primarily", more than 50 per cent.
"Research and development costs", in-house research expenses within the meaning of section 41(b)(2) of the Internal Revenue Code.
"Taxpayer", a certified life sciences company or person subject to the taxes imposed by chapters 62, 63, 64H or 64I.
"User fees", the monetary amount actually paid by a taxpayer to the U.S.F.D.A. that constitutes the fee due upon the submission of a human drug application or supplement pursuant to 21 U.S.C. section 379h(a)(1) for a human drug, the research and development costs of which, were primarily incurred in the commonwealth.
"U.S.F.D.A.", the United States Food and Drug Administration.
Qualifying property shall be tangible personal property and other tangible property including buildings and structural components of buildings acquired by purchase, as defined by section 179(d) of the Internal Revenue Code, as amended and in effect for the taxable year, but not including property that is taxable under chapter 60A; provided, however, that such property shall be depreciable under section 167 of the Internal Revenue Code and have a useful life of 4 years or more. With respect to property which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this paragraph which represents the ratio which the months of qualified use bear to the months of useful life. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the credit allowed for actual use must be added back as additional taxes due in the year of disposition; provided, however, if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve consecutive years, it shall not be necessary to add back the credit, as provided in this paragraph. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the months of useful life. For the purposes of this paragraph, useful life of property shall be the same as that used by the corporation for depreciation purposes when computing federal income tax liability.
A taxpayer taking a credit allowed under this subsection may not take the credit allowed by subsection (g) except to such extent, not to exceed 2 per cent of the cost of any qualifying property, as may be provided in a certification pursuant to said section 5 of chapter 23I.
Nothing in this section shall limit the authority of the commissioner to make adjustments to a taxpayers liability upon audit or limit any other legal remedies available to the commissioner or the commonwealth against said taxpayer.
"Bargain sale'', the sale of an interest in real property by a taxpayer at a cost below appraised market value, when a portion of the value of the interest in real property is a qualified donation, as such term is defined herein and which meets the requirements of section 1011(b) of the Internal Revenue Code of 1986, as amended.
"Certified land'', an interest in real property, the donation or bargain sale of which has first been determined by the secretary of energy and environmental affairs to be in the public interest for natural resource protection including, but not limited to, drinking water supplies, wildlife habitat and biological diversity, agricultural and forestry production, recreational opportunities, or scenic and cultural values; provided, however, that the secretary of energy and environmental affairs shall assure that all certified lands are protected in perpetuity.
"Interest in real property'', any right in real property in the commonwealth, with or without improvements thereon, or water including, but not limited to, fee simple, life estate, restriction, easement, covenant, condition, partial interest, remainder, future interest, lease, license, mineral right, riparian right or other interest or right in real property that may be conveyed concerning the power to transfer property.
"Public or private conservation agency'', the commonwealth, or any subdivision thereof, or any municipality, or private nonprofit corporation organized for the purposes of land conservation, which is authorized to do business in the commonwealth, and which has tax-exempt status as a nonprofit charitable organization as described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
"Qualified donation'', a donation, or the donated portion of a bargain sale, made in perpetuity of a fee interest in real property or a less-than-fee interest in real property, including a conservation restriction, agricultural preservation restriction or watershed preservation restriction, pursuant to chapter 184, provided that such less-than-fee interest meets the requirements of qualified conservation contributions under section 170(h) of the Internal Revenue Code of 1986.
"Taxpayer'', a taxpayer subject to the income tax under this chapter.
A transferee shall use the credit in the year it is transferred. If the credit allowable for any taxable year exceeds the transferees tax liability for that tax year, the transferee may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; provided, however, that in no event shall the transferee apply the credit to the tax for any taxable year beginning more than 10 years after the taxable year in which EOHLC gives the commissioner written notification of completion of the certified housing development project.
"Business", a profession, sole proprietorship, trade partnership, corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, non-profit entity or other business entity.
"Gateway municipality", a gateway municipality as defined in section 3A of chapter 23A.
"Qualifying business", a business which:
"Qualifying investment", a monetary investment that is at risk and is not secured or guaranteed; provided, however, that a qualifying investment shall not include venture capital funds, hedge funds or commodity funds with institutional investors or investments in a business involved in retail, real estate, professional services, gaming or financial services.
"Taxpayer investor", an accredited investor, as defined by the United States Securities and Exchange Commission pursuant to 15 USC section 77b(15)(ii), who is not: (i) the principal owner of the qualifying business; or (ii) involved in the qualifying business as a full-time professional activity.
"Capital investment", expenses incurred for the site preparation and construction, repair, renovation, improvement or equipping of a building, structure, facility or other improvements to real property, including, but not limited to, site-related utility and transportation infrastructure improvements.
"Center", the Massachusetts clean energy technology center established in section 2 of chapter 23J.
"Certified offshore wind company", as defined in section 1 of chapter 23J.
"Offshore wind facility", any building, complex of buildings or structural components of buildings, including water access infrastructure, and all machinery and equipment used in the manufacturing, assembly, development or administration of component parts that are primarily used to support the offshore wind industry.
"Owner", a taxpayer subject to tax under this chapter that:
"Tenant", a taxpayer subject to tax under this chapter that is a lessee in an offshore wind facility.
[See Note for Repeal Date]
"Authorized training program", a program approved by the secretary of administration and finance and the secretary of labor and workforce development that is offered by an employer to train qualified trainees; provided, that said program shall assist qualified trainees in developing skills and accessing resources to prepare qualified trainees to enter the workforce; and provided further, that no authorized training program shall provide compensation to a qualified trainee without work authorization and said program shall ensure the qualified trainee has no expectation of compensation for training.
"Qualified trainee", an individual receiving benefits through the emergency housing assistance program pursuant to section 30 of chapter 23B and 760 CMR 67.00 or an individual in an overflow emergency shelter site established in response to the capacity limitation on said program pursuant to a declaration issued by the secretary of housing and livable communities dated October 31, 2023, the extension of the declaration dated February 28, 2024 and any subsequent extensions, issued pursuant to 760 CMR 67.10, as inserted by emergency regulations issued by the executive office of housing and livable communities on October 31, 2023 and accompanying guidance issued pursuant to said declaration and 760 CMR 67.10, who:
"Training", teaching, developing or enhancing skills and knowledge to improve capacity, productivity and performance to enter the workforce, including, but not limited to, classes, clinics or other hands-on methods.
"Work authorization", federal authorization to work in the United States pursuant to 8 CFR 274a.
[Effective for taxable years beginning on or after January 1, 2025]
[Repealed Effective 1/1/2030]
"Development cost", as defined in section 36 of chapter 23B.
"Executive office", the executive office of housing and livable communities, established pursuant to chapter 23B.
"Qualified conversion project", as defined in section 36 of chapter 23B.
"Sponsors", as defined in section 25 of chapter 23B.
Mass. Gen. Laws ch. 62, § 62:6