- Dairy Farmer Tax Credit – Massachusetts dairy farmers may be eligible for a tax credit against Massachusetts income tax or corporate excise liability. The tax credit is intended to offset downturns in milk prices paid to dairy farmers when the cost of milk drops below a price based on federal standards. The credit amount is based on the amount of milk the farm produces and sells anytime during the tax year.
- Economic Development Incentive Program Credit (EDIPC) is designed to stimulate job creation in distressed areas, attract new businesses, encourage business expansion, and increase overall economic development in Massachusetts. Taxpayers who have their businesses designated as certified job creation projects may receive a credit of up to $5,000 per job created. A controlling business or its affiliates may receive the credit against their income tax or corporate excise liabilities.
- Economic Opportunity Area Credit (EOAC) is designed to stimulate job creation in distressed areas, attract new businesses, encourage business expansion, increase overall economic development in Massachusetts. Individuals, partnerships, or corporations may apply to the EACC to have their businesses designated as certified projects in an EOA. Businesses may earn a credit for qualifying tangible properties including buildings or structural components of buildings acquired by purchase. During the tax year, the “qualifying tangible properties” must have been acquired, constructed, reconstructed, or erected. The qualifying property cannot be a motor vehicle, must be either depreciable property with a useful life of 4 years or recovery property, and cannot be purchased from closely related parties
- Farming and Fisheries Tax Credit is available to certain personal income taxpayers engaged in agriculture, farming, or commercial fishing as defined under Massachusetts law. The amount of the credit is 3% of the cost during the tax year. The credit is for federal income tax purposes of qualifying property acquired, constructed, or erected. The qualifying properties must be: (1) personal or other tangible properties, including buildings and structures, (2) located in Massachusetts, (3) used solely in farming, agriculture, or fishing, and (4) depreciable with a useful life of at least 4 years. Unused credits may be carried forward for the next 3 tax years.
- Research Credit may be available to business corporations subject to the corporate excise that incurred “Massachusetts qualified research expenses” in Massachusetts including wages paid to employees or contractors, and amounts paid for supplies.The credit is only applicable if the services were performed for research purposes and the supplies were used to conduct research in Massachusetts.
- Apprenticeship Tax Credit providing certain non-corporate and corporate employers a nontransferable, refundable credit against the personal income tax and corporate excise equal to the lesser of $4,800 or 50% of the wages paid to each qualified apprentice that the employer hires. The credit is available to any employer provided that: (1) the primary place of employment of the apprentice is in the Commonwealth; (2) the employer is registered with the division of apprentice standards as an apprenticeship program sponsor and has an apprentice agreement with each apprentice for whom the credit is claimed; and (3) the apprentice is employed as an apprentice by the employer for at least 180 calendar days in the taxable year in which the credit is claimed.
- Brownfields Tax Credit may be available to individual taxpayers, non-profit organizations, and business corporations that clean up contaminated property in Massachusetts. The taxpayer must complete the cleanup in compliance with standards set out by the Department of Environmental Protection (DEP). Depending on the extent of the completed cleanup, the taxpayer may apply to the Department of Revenue for the credit equal to either 25% or 50% of the cost.
- The Certified Housing Development Tax Credit (CHDC) may be available to personal income tax or corporate excise taxpayers that invest in housing development projects in Massachusetts. The current yearly cap of the CHDC is $10,000,000. The CHDC is available for up to 25% of the costs of qualified project expenditures.
- Community Investment Tax Credit (CITC), The CITC, may be available to personal income or corporate excise taxpayers who make cash contributions to community partners investing in economic opportunities for low and moderate income households in Massachusetts or; a community partnership fund. The current yearly cap of the CITC is $6,000,000.
- Conservation Land Tax Credit (CLTC) may be available to personal income and corporate excise taxpayers that make qualified donations of certified land to a public or private conservation agency in Massachusetts. The current yearly cap of the CLTC is $2,000,000.
- The Harbor Maintenance Tax Credit may be available to corporate excise taxpayers who paid the federal harbor maintenance tax (HMT). The HMT is a federal tax on the use of ports in Massachusetts. The credit isn’t available for taxes paid with respect to passengers, the shipment of bulk cargo, or the shipment of any other cargo or item of commerce not included in the meaning of “break-bulk” or “containerized cargo.”
- A Historic Rehabilitation Tax (HRT) credit may be available to qualifying personal income or corporate excise taxpayers that have expenditures from the rehabilitation of a historic structure. The HRT credit is up to 20% of the taxpayer’s rehabilitation expenditures in regard to a historic structure or phase of a structure for projects completed in phases.
- The Investment Tax Credit (ITC) may be available to certain corporate excise taxpayers in Massachusetts. To qualify, a corporation must be defined under Massachusetts law as a manufacturing corporation, research and development corporation, corporation primarily engaged in agriculture, or corporation primarily engaged in commercial fishing.
- The Low Income Housing Tax Credit, The LIHTC, is available to individual taxpayers, partnerships, corporations.To qualify, the taxpayers must invest in a qualified low-income housing project located in Massachusetts. The current yearly cap is $10,000,000.
