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                              ETM
PETIETN SE                    E I EVO
         PLACIDAM SVB LIBERTAT

                                            Commonwealth of Massachusetts                          Department of Revenue

                                     2020 Instructions

                                     for Massachusetts

                                     Security Corporation

                                     Excise Return

                                     Form 355SC

                                     Massachusetts has an electronic filing requirement for this
                                     form. See TIR 16-9 for further information.

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What kind of help is available
The instructions in the Department of Revenue’s tax forms should provide answers to most taxpayer questions. If you have questions about com -
pleting your Massachusetts tax form, you can call us at (617) 887-6367 or toll-free in Massachusetts at 1-800-392-6089 Monday through Friday.
DOR’s website at mass.gov/dor is also a valuable resource for tax information 24 hours a day. Thousands of taxpayers use DOR’s website to e-mail
and  re ceive prompt answers to their general tax inquiries. Interactive applications that allow taxpayers to check the status of their  refunds and
  review their quarterly estimated tax payment histories are available through our website or by calling our main information lines listed above.

Where to get forms and publications
Many Massachusetts tax forms and publications are available via the DOR website. The  address for the  Department’s website is mass.gov/dor.

For general tax information. Please call (617) 887-6367 or toll-free in Massachusetts 1-800-392-6089. These main  in for mation
lines can provide assistance with the following:

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                                                                             3

                                                    pacting the Massachusetts Tax Treatment of Se-      ing on a calendar year basis). The law did not
Major 2020 Tax Law                                  lected International Provisions of the Federal Tax  change the filing due date for S corporation tax
                                                    Cuts and Jobs Act, TIR 19-9: Extension of Time      returns, which remains the 15th day of the third
Changes                                             to File Short-Year Returns Resulting from Part-     month following the close of each taxable year.
                                                    nership Technical Termination, TIR 19-7: Mass-      See TIR 17-5.
Federal Conformity                                  achusetts Treatment of Investments in Qualiﬁed      For most calendar year filers, returns are due
Massachusetts generally follows the Internal Rev-   Opportunity Zones, and TIR 19-6: Impact of the      April 15, 2021.
enue Code (IRC) as currently in effect for Mass-    Federal Tax Cuts and Jobs Act on a Taxpayer’s
achusetts corporate excise tax purposes. For        Overall Method of Accounting for Massachusetts
more up-to-date and detailed information on tax     Purposes. All of these TIRs are available on the    Who May File
changes and federal conformity please see the       DOR’s website.
dedicated 2020 Tax Changes page on our website
at https://www.mass.gov/orgs/massachusetts-         Employees Working Remotely due                      Form 355SC?
department-of-revenue.                              to COVID-19: Massachusetts Tax                      Any foreign or domestic corporation organized or
                                                    Implications                                        doing business in Massachusetts and which is
Changes Related to Federal Tax                      Massachusetts declared a state of emergency and     classified and operating as a valid security corpo-
Reform                                              issued several health and safety related restric-   ration under Massachusetts law may file Form
Massachusetts generally follows the Internal Rev-   tions in response to the 2019 novel Coronavirus     355SC. Under Massachusetts General Laws
enue Code (IRC) as currently in effect for Mass-    (“COVID-19”) pandemic. As a result, many busi-      (MGL) ch 63, § 38B, a security corporation is any
achusetts corporate excise tax purposes. For        nesses implemented work-from-home require-          corporation:
more up-to-date and detailed information on tax     ments for their employees. The Department has
changes and federal conformity please see the       provided Massachusetts tax relief in situations in
dedicated 2020 Tax Changes page on our website      which employees work remotely due solely to the
at https://www.mass.gov/orgs/massachusetts-         COVID-19 pandemic to minimize disruption for
department-of-revenue.                              corporations doing business in Massachusetts.
                                                    See 830 CMR 62.5A.3: Massachusetts Source In-
Coronavirus Aid, Relief, and                        come of Non-Residents Telecommuting due to
Economic Security Act                               the COVID-19 Pandemic, and TIR 20-15: Revised
On March 27, 2020, Public Law 116-136, the          Guidance on the Massachusetts Tax Implications
Coronavirus Aid, Relief, and Economic Security      of an Employee Working Remotely due to the
Act (the CARES Act), was signed into law. The       COVID-19 Pandemic. These rules are effective
CARES Act provides for federal changes to a va-     until 90 days after the state of emergency in
riety of provisions of the Internal Revenue Code    Massachusetts is lifted.
(IRC) that affect business entities subject to the  The Department will not consider the presence of
corporate and ﬁnancial institution excise. In re-   one or more employees working remotely from
sponse to the CARES Act, the Department of Rev-     Massachusetts solely due to a Pandemic-Related
enue (DOR) issued TIR 20-9: Massachusetts Tax       Circumstance, including the presence of business
Implications of Selected Provisions of the Federal  property reasonably needed for such persons’
CARES Act, which addresses various provisions       use while working remotely, to be sufficient in
that are specific to corporations and small busi-   and of itself to establish corporate nexus and a
nesses including (1) small business loan forgive-   corporate excise filing requirement. In addition,
ness, (2) modifications to the federal limitations  such presence will not, of itself, cause a corpora-
on net operating losses, (3) modifications to lim-  tion to lose the protections of Public Law 86-272.
itation on business interest deduction, (4) techni- Relatedly, for corporate apportionment purposes,
cal amendments regarding qualified improvement      (i) services performed by such persons in Mass-
property, and (5) modification of limitation on     achusetts will not increase the numerator of the
charitable contributions during 2020. TIR 20-9 is   employer’s payroll factor, and (ii) the presence in
available on DOR’s website.                         Massachusetts of business property reasonably
                                                    needed for such persons’ use while working re-
Tax Cuts and Jobs Act
                                                    motely will not increase the numerator of the em-
The Tax Cuts and Jobs Act (TCJA) also changed
                                                    ployer’s property factor.
a variety of provisions of the IRC that affect busi-
ness entities subject to the corporate and ﬁnan-    Filing Due Dates
cial institution excise. In response to the TCJA,   Beginning with tax returns due on or after Janu-
the Department of Revenue (DOR) issued written      ary 1, 2018, Massachusetts General Laws (MGL)
guidance addressing the impact of the TCJA in       ch 62C, §§ 11 and 12 require C corporations to
Massachusetts. See e.g., TIR 19-17: Application     file their tax returns on or before the 15th day of
of IRC § 163(j) Interest Expense Limitation to      the fourth month following the close of each tax-
Corporate Taxpayers, TIR 19-11: Legislation Im-     able year (April 15 in the case of corporations fil-

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Class 2 security corporations pay an excise of
1.32% of Massachusetts gross income or the
minimum excise of $456, whichever is greater.

What Are the Differences Between
the Security Corporation Excise and
the Business Corporation Excise?
Unlike business corporations, security corpora-
tions pay an excise based exclusively on gross in-
come. Gross income for security corporations is
equal to U.S. gross income plus tax-exempt in-
terest from state and local obligations, including
Massachusetts. In addition, security corporation
gross income may include a deduction for capital
losses sustained during the taxable year to the ex-
tent they are allowable for federal tax purposes.
This deduction may not be used to offset dividend
or interest income, nor be carried over to other
taxable years. It may only be applied to reduce
capital gains realized in the year during which the
capital losses are sustained. Also, security corpo-
rations may not:

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return can be filed to either increase or decrease
your tax. Generally, an amended return must be
filed within three years of the date that your origi-
nal return was filed. Electronic filing requirements
apply to amended returns and disputes. See TIR
16-9 for further information.

Federal Changes
If this is an amended Massachusetts return and it
does not report changes that result from the filing
of a federal amended return or from a federal audit
(for example, if the amended Massachusetts return
is reporting only a change in the apportionment
calculation or an additional tax credit), fill in only
the Amended return oval. If this is an amended
return that includes changes you have reported
on an amended federal return filed with the IRS
for the same tax year, fill in both the Amended
return box and the Federal amendment oval. If
the amended Massachusetts return incorporates
changes that are the result of an IRS audit, check
both the Amended return and     Federal audit
ovals; enclose a complete copy of the federal
audit report and supporting schedules.

Consent to Extend the Time to Act
on an Amended Return treated as
Abatement Application
In certain instances, an amended return showing
a reduction of tax may be treated by DOR as an
abatement application. Under such circumstances,
by filing an amended return, you are giving your
consent for the Commissioner of Revenue to act
upon the abatement application after six months
from the date of filing. See TIR 16-11. You may
withdraw such consent at any time by contacting
the DOR in writing. If consent is withdrawn, any
requested reduction in tax will be deemed denied
either at the expiration of six months from the
date of filing or the date consent is withdrawn,
whichever is later.

Filing an Application for Abatement
File an Application for Abatement, Form ABT, only
to dispute one of the following:

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For more information on corporate estimated Credits reported on the Schedule CMS are gener- tion 2 to the extent that the taxpayer is requesting
taxes, refer to 830 CMR 63B.2.2, and MGL ch 63B. ally identified either by a certificate number as- a refund. However, a taxpayer that received a re-
signed by the issuing agency (which may be the fundable credit on a Massachusetts K-1 from a
What if the Taxpayer Is a Fiscal or DOR) or by the tax period end date in which the pass-through entity or a credit transfer should re-
Short Year Filer? credit originated. If a credit has been assigned a port such credit in Section 4, to the extent that
File the 2020 return for calendar year 2020 and fis- certificate number, the certificate number must be the taxpayer is requesting a refund. For each re-
cal years that began in 2020 and ended in 2021. included on the Schedule CMS. A taxpayer that fundable credit, report the amount of the credit
For a fiscal year return, fill in the tax year space at does not include an assigned certificate number available after taking into consideration any
the top of page 1. Short year filers should file us - on the Schedule CMS will not be allowed the amount of the credits that may have been taken
ing the tax form for the calendar year within which credit on the tax return and will have their tax lia- to offset a tax or shared as reported in Section 1
the short year falls. If the short year spans more bility adjusted by the DOR. Be sure to omit hy- of this schedule. Enter the amount by which the
than one calendar year, the filer should file use phens, spaces, decimals and other special available credit balance is being reduced and the
the tax form for the calendar year in which the symbols when entering the certificate number. amount to be treated as a refundable credit,
short year began. If the current form is not avail- Also, enter the number from left to right. which may be either 90% or 100% of the reduc-
able at the time the short year filer must file, the Likewise, a taxpayer that is required to complete tion. See TIR 13-6, Example 3, for an illustration.
filer should follow the rules explained in TIR 11- a separate schedule to claim a credit must include
12. the separate schedule with the taxpayer’s return Section 3. Non-Refundable Credits
filing. Failure to do so may result in the credit Received from Massachusetts K-1
Are There Special Tax Credits being disallowed. Schedules
Available In Massachusetts? Section 3 is for reporting credits the taxpayer re-
If, by operation of MGL ch 63, § 32C or another
Yes. Massachusetts offers several special credits ceived on a Massachusetts K-1 schedule (SK-1,
provision of law, a credit normally identified by
to corporations. 2K-1 or 3K-1) that the taxpayer is using (i) to off-
tax period end date is eligible for indefinite carry-
Under MGL ch 63, § 32C, a corporation’s credits over, the credit should be reported as “non-expir- set or reduce the taxpayer’s total tax due (ii) to
may not offset more than 50% of its excise. Any ing” and identification of the tax period of origin pass to any partner, shareholder or beneficiary of
credits not utilized as a result of this pro vision may is not necessary. the taxpayer or (iii) to share with taxpayer affili-
be carried over for an unlimited number of years. ates. The Brownfields Credit, Film Incentive
This provision does not apply to the Research Overview of Schedule CMS Credit, or Medical Device Credit should never be
Credit, the Harbor Maintenance Tax Credit, Low- The following is a brief overview of the Schedule included in Section 3.
Income Housing Credit, Historic Rehabilitation CMS sections and where certain credits should be Note: Do not report the Brownfields Credit, Film
Credit, the Film Incentive Credit, Medical Device reported. If a taxpayer is using a credit to reduce Incentive Credit, and Medical Device Credit in this
Credit, Veteran’s Hire Tax Credit or the Low-In- a taxpayer’s current year tax liability, whether it is section because these credits are issued new cer-
come Housing Donation Credit. a non-refundable credit or a refundable credit, the tificate numbers from the DOR when they are re-
Credits must be entered on the Credit Manager credit should be reported in Section 1 or 3 of the ceived from a pass-through entity or a credit
Schedule (Schedule CMS). Schedule CMS. Only a refundable credit that the transfer. These credits should always be reported
taxpayer is seeking a refund for should be re- in Section 1, unless the taxpayer is requesting a
Schedule CMS: Tax Credits ported in either Section 2 or 4 of the Schedule refund of the Film Incentive Credit.
Financial institutions, insurance companies, busi- CMS. Generally, a credit should only be reported
ness corporations, and other taxpayers subject to in one section on the Schedule CMS unless a por- Section 4. Refundable Credits
tax under MGL ch 63 may be eligible for certain tion of it is being used to offset a tax and a por- Received from Massachusetts K-1
tax credits in Massachusetts. Credits may be tion is being refunded. Schedules
used to offset a tax due, may be passed or shared Section 4 is for reporting credits the taxpayer re-
with another person or entity, or, in some cases Section 1. Non-Refundable Credits ceived on a Massachusetts K-1 schedule (SK-1,
credits may be fully or partially refundable. MGL Section 1 is for reporting credits the taxpayer is 2K-1 or 3K-1) and that the taxpayer is using to
ch 63 taxpayers with credits available for use in using (i) to offset or reduce the taxpayer’s total request a refund. The Film Incentive Credit should
the current taxable year must file a Schedule CMS tax due (ii) to pass to any partner, shareholder or never be included in Section 4. For each refund-
to claim most credits. beneficiary of the taxpayer or (iii) to share with able credit, report the amount of the credit avail-
taxpayer affiliates. The Brownfields Credit, Film able after taking into consideration any amount of
For each credit claimed on a Schedule CMS, re- Incentive Credit, or Medical Device Credit should the credits that may have been used to offset a
port the amount of the credit available for use and always be included in Section 1, unless the tax- tax or shared as reported in Section 3 of this
the amount of credit claimed to reduce tax for the payer is requesting a refund of the Film Incentive schedule. Enter the amount by which the available
current taxable year. For pass-through entities, re- Credit. However, a taxpayer that received a credit credit balance is being reduced and the amount
port the amount of credit distributed to on a Massachusetts K-1 schedule from a pass- to be treated as a refundable credit, which may
partners/shareholders/beneficiaries in the credit through entity or a credit transfer should report be either 90% or 100% of the reduction. See TIR
shared column. Taxpayers also report the amount such credit in Section 3 or 4, as applicable. 13-6, Example 3, for an illustration.
of a refundable credit they are using to request a
refund of tax. See the Credit Manager Schedule Section 2. Refundable Credits Note: Do not report the refundable Film Incentive
Instructions for more information on how to Section 2 is for reporting refundable credits the Credit in this section because these credits are is-
complete the Schedule CMS and claim the cred- taxpayer is using to request a refund. The Film In- sued new certificate numbers from the DOR
its. centive Credit should always be included in Sec- when they are received from a pass-through en-

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                                                                             7

tity or a credit transfer. If the taxpayer is request-                                                             sion of Apprentice Standards again certifies that
ing a refund of the Film Incentive Credit, it should         Credit Recapture                                      the apprentice remains employed as an appren-
be reported in Section 2.                                                                                          tice during the subsequent taxable year. 
                                                             Schedule                                              The ATC is not transferrable but is refundable.
List of Credit Names and Credit                                                                                    The ATC is available for tax years beginning on or
                                                             Certain Massachusetts tax credits are subject to
Codes                                                        recapture as specified in the statute authorizing     after January 1, 2019. See TIR 18-13 for further
The following table identifies various credits that          the credit (e.g. the investment tax credit is subject information.
may be available to a taxpayer subject to tax                to recapture under MGL ch 63, § 31A(e) if an asset    To claim the ATC, enter the ATC certificate num-
under MGL ch 63 and that must be claimed on a                for which the credit was taken is disposed of be-     ber and the amount of ATC using credit code AP-
Schedule CMS.                                                fore the end of its useful life). Recapture may also  PCRD on Schedule CMS.
                                                             be triggered if the corporation no longer qualifies
List of Credit names and Credit code                         for the credit (as when a manufacturing corpora-      Brownfields Tax Credit
                                                             tion ceases to qualify as such or a corporation’s     Taxpayers subject to tax under MGL ch 63 and
Apprenticeship Tax Credit………..APPCRD*                        status as a Life Sciences Company is terminated       nonprofit organizations may be eligible to claim a
Brownfields . . . . . . . . . . . . . . . . . . BRWFLD       as discussed in TIR 13-6.)                            Brownfields Tax Credit (BTC) for amounts ex-
                                                                                                                   pended to clean up contaminated property in
Certified Housing . . . . . . . . . . . . . . CRTHOU         If a recapture calculation is required, the amount
                                                                                                                   Massachusetts in an amount equal to either 25%
Community Investment . . . . . . . . . CMMINV*               of the credit allowed is redetermined and the re-
                                                                                                                   or 50% of the cost. The cleanup must begin on
                                                             duction in the amount of credit allowable is re-
                                                                                                                   or before August 5, 2023, and costs must be in-
Conservation Land . . . . . . . . . . . . . CNSLND*          captured to the extent the credit was taken or
                                                                                                                   curred before January 1, 2024, and equal or ex-
Dairy Farm . . . . . . . . . . . . . . . . . . . DAIFRM*     used in a prior year. See DD 89-7. Taxpayers who
                                                                                                                   ceed 15% of the assessed value of the property
                                                             have a recapture calculation must complete this
EDIP . . . . . . . . . . . . . . . . . . . . . . . . EDIPCR*                                                       before the beginning of the cleanup. Contami-
                                                             schedule whether or not a recapture tax is deter-
                                                                                                                   nated properties must be owned or leased for
EDIP-Vacant Storefront Credit…....VACSTR*                    mined to be due.
                                                                                                                   business purposes, reported to the Massachu-
Employer Wellness. . . . . . . . . . . . . EMPWLL            For credits tracked by certificate numbers, enter     setts Department of Environmental Protection
EOAC . . . . . . . . . . . . . . . . . . . . . . . EOACCR    each certificate number and the associated credits    (DEP), cleaned up in compliance with DEP’s stan-
                                                             separately. For credits not tracked by certificate    dards, and located in an economically distressed
Film Incentive . . . . . . . . . . . . . . . . . FLMCRD*     number, enter credits separately by type and the      area identified by DEP. Unused portions of BTC
Harbor Maintenance. . . . . . . . . . . . HRBMNT             year to which they relate. List only those credits    may be carried forward for the next 5 years. If a
Historic Rehabilitation . . . . . . . . . . HISRHB           and certificate numbers or tax years for which a      BTC recipient does not maintain the property in
                                                             reduction in the credit is being calculated.          compliance with standards set out by DEP, the
Investment Tax . . . . . . . . . . . . . . . . INVTAX                                                              credit may be recaptured. The BTC is not refund-
                                                             Brief Summary of Available Credits on
Life Science (FDA) . . . . . . . . . . . . . LFSFDA*                                                               able. For taxpayers subject to a minimum excise
                                                             Schedule CMS                                          under MGL ch 63, the BTC cannot reduce the ex-
Life Science (ITC). . . . . . . . . . . . . . LFSITC*        The following are brief summaries describing the      cise due below the minimum amount. The BTC is
Life Science (Jobs). . . . . . . . . . . . . LFSJOB*         specific credits that may be available to a taxpayer  also subject to the 50% limitation for taxpayers
                                                             subject to tax under MGL ch 63 and that must be
Life Science (RD) . . . . . . . . . . . . . . LFSRDC                                                               subject to tax under MGL ch 63, § 39. 
                                                             claimed on a Schedule CMS.
Low-Income Housing. . . . . . . . . . . LOWINC                                                                     The BTC may be transferred, sold or assigned to
                                                             Apprenticeship Tax Credit                             another taxpayer with a liability under MGL ch 62
Low-Income Housing Donation . . . LIHDON                     Businesses corporations subject to tax under          or 63, or to a nonprofit organization. A taxpayer
Medical Device . . . . . . . . . . . . . . . . MEDDVC        MGL ch 63 that employ qualified apprentices may       must complete a Form BCA, Brownfields Credit
Research. . . . . . . . . . . . . . . . . . . . . REARCH*    be eligible for an Apprenticeship Tax Credit (ATC).   Application, and submit it to DOR. If approved,
                                                             The credit is equal to the lesser of $4,800 or 50%    DOR will issue a certificate reflecting the amount
Vanpool . . . . . . . . . . . . . . . . . . . . . VANPOL     of the wages paid by the business to each quali-      of the BTC awarded. The party receiving the BTC
Veteran’s Hire . . . . . . . . . . . . . . . . . VETHIR      fied apprentice it hires. Business corporations are   must include the certificate number with each tax
                                                             eligible for up to $100,000 in credits each calen-
*These credits may be partially or fully refund-                                                                   return in which the credits are being applied. BTC
                                                             dar year. To claim the credit, the primary place of
able. See Schedule CMS instructions for further                                                                    application forms, including Form BCA, and addi-
                                                             employment of the apprentice must be in Mass-
information.                                                                                                       tional information are available at mass.gov/dor.
                                                             achusetts, the business corporation employing
Note: Certified life sciences companies with a Re-           the apprentice must register with the Division of     To claim the BTC, enter the BTC certificate num-
search Credit exceeding the amount of credit that            Apprentice Standards as an apprenticeship pro-        ber and the amount of BTC using credit code BR-
may be claimed under MGL ch 63, § 38M for a                  gram sponsor and enter into apprenticeship            WFLD on Schedule CMS.
taxable year may, to the extent authorized under             agreements with each apprentice for whom the          Certified Housing Development Tax Credit
the Life Sciences Tax Incentive Program, elect to            credit is claimed, and the apprentice must be em-     Taxpayers subject to tax under MGL ch 63 that
make 90% of the balance of remaining credits re-             ployed for at least 180 calendar days in the tax-     invest in housing development projects in Mass-
fundable. See MGL ch 63, § 38M(j).                           able year in which the credit is claimed. A           achusetts may be eligible to claim the Certified
                                                             business corporation claiming the credit in a tax-    Housing Development Credit (CHDC) in an
                                                             able year may also be eligible for a credit in the    amount up to 25% of the costs of qualified pro-
                                                             subsequent taxable year, provided that the Divi-      ject expenditures as defined in MGL ch 40V, § 1.

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Eligibility for and the amount of CHDC awarded milk drops below a price based on federal stan- Economic Development Incentive Program Credit
are determined and administered by the Depart- dards. The dairy farmer must have a certificate of (EDIPC) is available to taxpayers subject to tax
ment of Housing and Community Development registration as a Massachusetts dairy farm from under MGL ch 63 with respect to certified pro-
(DHCD). The CHDC is not refundable, but unused the Massachusetts Department of Agricultural jects as defined under MGL ch 23A. The EDIPC is
amounts may be transferred or carried forward Resources (MDAR). The total amount of DFTC equal to a percentage of the cost of qualifying
for 10 years. See TIRs 16-15, 10-15, and 10-14 granted through the program cannot exceed property purchased by a certified project for busi-
for further information. $6,000,000 in any year. The DFTC is refundable ness use within Massachusetts. As part of the
To claim the CHDC, enter the CHDC certificate but is not transferrable. project certification, the EACC may (but is not re-
number and the amount of CHDC using credit To claim the DFTC, enter the MDAR-issued cer- quired to) award a credit under the program and
code CRTHOU on Schedule CMS. tificate number and the amount of DFTC from the determine the percentage of the cost of the prop-
MDAR’s Dairy Farmer Certified Tax Credit State- erty to be used to determine the credit. In addi-
Community Investment Tax Credit ment using credit code DAIFRM on Schedule tion, the EACC may award an EDIPC that is
Taxpayers subject to tax under MGL ch 63 may CMS. refundable. To qualify for the EDIPC, the qualify-
be able to claim a Community Investment Tax ing property must be used exclusively in the cer-
Credit (CITC) for cash contributions made to a Economic Opportunity Area/Economic tified project in Massachusetts and must meet the
community partner to support implementation of Development Incentive Program Credits same tests imposed for the 3% ITC.
its community investment plan, or to a commu- Economic Opportunity Area Credit Unless the EDIPC awarded is refundable, the
nity partnership fund. The CITC is equal to 50% Taxpayers subject to tax under MGL ch 63 that credit may not offset more than 50% of the tax
of the total contribution made by the taxpayer and participated in projects certified by the Economic due. Carryover of unused EDIPC is available only
cannot be claimed for contributions of less than Assistance Coordinating Council (EACC) before to the extent authorized by the EACC. The EACC
$1,000. The Department of Housing and Commu- January 1, 2010 and in effect through December may, in consultation with DOR, limit (but not ex-
nity Development (DHCD) is responsible for de- pand) the EDIPC to a specific dollar amount or
termining which contributions qualify for the CITC 31, 2016, may be eligible to claim an Economic
and the actual amount of the CITC awarded. The Opportunity Area Credit (EOAC) equal to 5% of time duration or in any other manner deemed ap-
CITC is not transferrable. However, the CITC is re- the cost of qualifying property purchased for propriate by the EACC. St. 2009, c. 166, § 18. For
fundable, or, alternatively, may be carried forward business use within a certified project within an example, the EACC may limit the EDIPC available
for 5 years. For further information, see 760 CMR Economic Opportunity Area (EOA). A certified with respect to a particular project to a specific
68.00, 830 CMR 62.6M.1, and TIRs 16-15, 13- project is a project approved by the EACC. To dollar maximum, even if the actual dollar amount
15, and 12-10. qualify for the EOAC, the property must be used of the qualifying purchases would otherwise gen-
exclusively by the certified project in an EOA and erate a higher credit amount. Similarly, the EACC
To claim the CITC, enter the CITC certificate num- must meet the same tests imposed for the 3% may limit the otherwise applicable credit carry
ber and the amount of CITC using credit code Investment Tax Credit (ITC) (see ITC summary forward period provided by MGL ch 63, § 38N(d).
CMMINV on Schedule CMS. below). The EOAC cannot offset more than 50% The EDIPC may be subject to recapture if a tax-
Conservation Land Tax Credit of the tax due. Any unused EOAC may be carried payer’s business is decertified by the EACC, or a
Taxpayers subject to tax under MGL ch 63 that forward for 10 years, while credits not used be- taxpayer stops using the qualifying property in a
make qualified donations of certified land to a cause of the 50% limitation may be carried over certified project before the end of the property’s
public or private conservation agency in Mass- indefinitely. The EOAC may be subject to recap- useful life. The EDIPC is not transferable. For tax-
achusetts may be eligible for a Conservation Land ture if a taxpayer’s business is decertified by the payers subject to a minimum excise under MGL
Tax Credit (CLTC). The Executive Office of Energy EACC, or a taxpayer stops using the qualifying ch 63, the EDIPC may not reduce the excise due
and Environmental Affairs (EEA) ultimately deter- property in a certified project before the end of below the minimum amount. See TIRs 16-15, 14-
mines which donations qualify for CLTC and the the property’s useful life. The EOAC is neither re- 13, 10-15, and 10-1 for further information.
actual amount of CLTC attributable to the dona- fundable nor transferrable. For taxpayers subject To claim the EDIPC, complete Schedule EDIP and
tion. The CLTC is equal to 50% of the fair market to a minimum excise under MGL ch 63, the EOAC enter the amount of EDIPC using credit code
value of the donated certified land but may not may not reduce the excise due below the mini- EDIPCR on Schedule CMS. Also, enter the EACC-
exceed $75,000. The CLTC is refundable but is mum amount. The EOAC is not available to certi- issued certificate number on Schedule CMS. In-
not transferable. Taxpayers who claim CLTC may fied projects that were certified by the EACC on clude both the completed Schedule EDIP and
not claim any other credit or deduction in the or after January 1, 2010. See TIRs 16-15 and 10- Schedule CMS with the return.
same tax year for the costs related to the same 01 for further information.
EDIP Credit for Projects Certified on or
donated, certified land. For further information, To claim the EOAC, complete Schedule EOAC and after January 1, 2017
see 301 CMR 14.00, and 830 CMR 62.6.4. enter the amount of EOAC using credit code The EDIPC provisions were significantly changed
To claim the CLTC, enter the CLTC certificate EOACCR on the Schedule CMS. Include both the for projects certified on or after January 1, 2017.
number and the amount of CLTC using credit completed Schedule EOAC and Schedule CMS For projects certified by the EACC on or after Jan-
code CNSLND on Schedule CMS. with the return. uary 1, 2017, the EDIPC for taxpayers subject to
Dairy Farm Tax Credit Economic Development Incentive Program tax under MGL ch 63 is determined by the EACC
Massachusetts dairy farmers taxable under MGL Credit for Projects Certified on or After based on numerous factors set forth in MGL ch
ch 63 may be eligible for a Dairy Farm Tax Credit January 1, 2010 and Before January 1, 23A § 3D. The EACC may award a refundable
(DFTC) based on the amount of milk produced 2017 EDIPC to any certified project. Unless the EDIPC
and sold during the taxable year when the cost of For projects certified by the EACC on or after Jan- awarded is refundable, the EDIPC may not offset
uary 1, 2010 and before January 1, 2017, the more than 50% of the excise due. Carryover of

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unused EDIPC is available only to the extent in any tax year and the credit was not refundable. or containerized cargo by sea and ocean-going
authorized by the EACC. Recapture is required A taxpayer may carry forward any unused portion vessels through a Massachusetts harbor facility.
only if the EACC revokes the certification of a pro- of the EWC for up to 5 taxable years. For tax- The HMTC is neither refundable nor transferrable.
ject. The EDIPC is not transferable. For taxpayers payers subject to a minimum excise under MGL The HMTC may not reduce the corporate excise
subject to a minimum excise under MGL ch 63, ch 63, the EWC may not reduce the excise due due below the minimum amount but is not sub-
the EDIPC may not reduce the excise due below below the minimum amount. ject to the 50% limitation imposed by MGL ch 63,
the minimum amount. See TIRs 16-15 and 10-01 Since the EWC program expired on December 31, § 32C. Any unused portion of the HMTC may be
for further information. 2017, a taxpayer may only claim a previously carried forward for the next 5 tax years. See TIR
To claim the EDIPC, complete Schedule EDIP and awarded EWC that was carried over to subse- 97-4 and Schedule HM instructions for further in-
enter the amount of EDIPC using credit code quent tax years. Information about the criteria formation.
EDIPCR on Schedule CMS. Also, enter the EACC- DPH utilized for authorizing and certifying the To claim the HMTC, complete Schedule HM and
issued certificate number on Schedule CMS. In- EWC may be found in DPH’s “Massachusetts enter the amount of HMTC using credit code
clude both the completed Schedule EDIP and Wellness Tax Credit Incentive” regulation, 105 HRBMNT on Schedule CMS. Include both the
Schedule CMS with the return. CMR 216.000. completed Schedule HM and Schedule CMS with
EDIP Credit for Vacant Storefronts To claim the EWC, enter the amount of EWC the return.
Effective January 1, 2019, awards of EDIPC are using credit code EMPWLL on Schedule CMS. Historical Rehabilitation Credit
also available as a Vacant Storefront Credit (VSC) Also, enter the DPH issued certificate number on Taxpayers subject to tax under MGL ch 63 that
to taxpayers subject to tax under MGL ch 63 that Schedule CMS. have made qualified expenditures in the rehabili-
occupy vacant storefronts in downtown areas Film Incentive Credit tation of a qualified historic structure may be eli-
that have been designated as Certified Vacant Motion picture production companies subject to gible to claim a Historic Rehabilitation Tax Credit
Storefront Districts. To claim the VSC a taxpayer tax under MGL ch 63 may be eligible to claim the (HRTC). The HRTC may be claimed for up to 20%
must apply for and obtain certification from the Film Incentive Credit (FIC) for certain payroll and of the taxpayer’s rehabilitation expenditures made
EACC and must commit to occupy the vacant production expenses. Production companies that in substantially rehabilitating a historic structure
storefront for not less than 1 year. The taxpayer incur at least $50,000 of production costs in that has received final certification from the
does not need to invest in improvements or cre- Massachusetts are eligible for a credit equal to Massachusetts Historical Commission and placed
ate new jobs to claim the VSC. The EACC awards 25% of the total Massachusetts payroll for the into service (where occupancy of the entire struc-
the VSC on a competitive basis, taking into ac- production, excluding salaries of $1 million and ture or some identifiable portion of it is permit-
count the factors set forth in MGL ch 23A, § 3C. higher. In addition, production companies whose ted). Unused portions of HRTC may be carried
The amount of VSC available to taxpayers occu- Massachusetts production expenses exceed 50% forward for the following 5 tax years. The HRTC
pying vacant storefronts is limited to $500,000 in of the total production cost may receive a credit may be transferred or sold to another taxpayer
a calendar year. equal to 25% of the total Massachusetts produc- but is not refundable. HRTC awards also may be
The VSC is not transferrable but is refundable. For tion expense. The FIC may be applied to reduce a transferred to other qualifying taxpayers that ac-
additional information about the credit, contact taxpayer's liability (including the minimum ex- quire a historic structure, as long as certain crite-
the Massachusetts Office of Business Develop- cise), reduced by any other available credits, after ria are met. Any HRTC claimed by the taxpayer
ment at 617-973-8600. which 90% of any remaining credits may be re- may be subject to recapture if the taxpayer dis-
To claim the VSC, enter the amount of the VSC funded to the taxpayer. Subject to certain condi- poses of its interest in the structure within 5 years
using credit code VACSTR on Schedule CMS. tions, unused FIC may be carried over, refunded, of its placement into service. HRTC awards how-
Also, enter the EACC-issued certificate number on or transferred by the taxpayer for the following 5 ever are not subject to recapture. For taxpayers
Schedule CMS. tax years. FIC transferees may carry forward un- subject to the corporate excise, the HRTC is not
used FIC for the 5 tax years subsequent to the subject to the 50% limitation under MGL ch 63, §
Employer Wellness Credit first tax year the FIC was allowed to the initial FIC 32C but may not reduce the excise below the
The Employer Wellness Credit (EWC) program transferor. The FIC is not refundable to the trans- minimum amount. For further information, see
expired on December 31, 2017 and no new EWC feree. See TIR 07-15 for further information. 830 CMR 63.38R.1 and TIRs 16-15 and 10-11.
amounts are being awarded. However, remaining To claim the FIC, enter the FIC certificate number To claim the HRTC, enter the HRTC certificate
credits awarded for the 2015 through 2017 tax and the amount of FIC using credit code FLMCRD number and the amount of HRTC using credit
years and carried over by a taxpayer may be ap- on Schedule CMS. Supporting documentation code HISRHB on Schedule CMS. Supporting doc-
plied in the 2020 tax year. must be available to DOR upon request. Certifi- umentation must be enclosed with the return or
Effective for tax years beginning on or after Janu- cate application forms and additional information the HRTC may be disallowed. For further infor-
ary 1, 2013, a taxpayer subject to tax under MGL are available at mass.gov/dor. mation on documentation see the Transfer/Sale
ch 63 that employed 200 or fewer workers was HRC: Historic Rehabilitation Credit Certificate
eligible for the EWC for up to 25% of its costs as- Harbor Maintenance Tax Credit Form and Allotment Schedule HRC: Historic Re-
sociated with implementing a “certified wellness Business corporations subject to tax under MGL habilitation Credit Summary Form.
program” for its employees. Prior to the EWC ch 63 that have paid certain federal harbor main-
program’s expiration on December 31, 2017, a tenance taxes under IRC § 4461 may be eligible Investment Credit
taxpayer could claim the EWC by applying to the to claim the Harbor Maintenance Tax Credit Taxpayers subject to tax under MGL ch 63, § 39
Department of Public Health (DPH) to certify its (HMTC). A corporation is eligible for the HMTC may be eligible to claim the Investment Tax Credit
wellness program. The amount of the credit only for federal harbor maintenance taxes paid (ITC). To claim the ITC, a corporation must qualify
available to be claimed could not exceed $10,000 that are attributable to the shipment of break-bulk as a manufacturing or research development cor-

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poration under MGL ch 63, § 42B, or be princi- mation, see TIRs 13-6 and 08-23. using credit the LSRJTC may be subject to recapture. For
pally engaged in agriculture or commercial fish- code LFSFDA on the Schedule CMS. more information, see TIRs 13-6, 11-6, and 08-
ing. Such corporations may earn a credit equal to 23.
3% of the cost of “qualifying tangible property” Life Sciences Refundable Investment Tax
acquired, constructed, reconstructed, or erected Credit To claim the LSRJTC, complete a Schedule RLSC
during the taxable year. “Qualifying tangible prop- Certified life sciences companies subject to tax and enter the amount of LSRJTC using credit
erty” includes tangible property, buildings, and under MGL ch 63, to the extent authorized by the code LFSJOB on Schedule CMS.
structural components acquired by purchase (as Life Sciences Tax Incentive Program, may claim Life Sciences Research Tax Credit
defined in IRC § 179(d)) that is used and located a Life Sciences Refundable Investment Tax Credit Certified life sciences companies subject to tax
in Massachusetts on the last day of the taxable (LSRITC) equal to 10% of the cost of qualifying under MGL ch 63, to the extent authorized by the
year, and is depreciable under IRC § 167 with a property acquired, constructed, reconstructed, or Life Sciences Tax Incentive Program, may claim
useful life of four years or more. Any unused por- erected and used exclusively in Massachusetts. If a Life Sciences Research Tax Credit (LSRTC) for
tion of the credit may be carried forward for 3 tax the LSRITC exceeds the tax due, 90% of the bal- certain expenditures that do not qualify for the
years after the credit was earned, while credits ance of the LSRITC may, at the option of the tax- MGL ch 63, § 38M Research Tax Credit (RC). The
not used because of the 50% limitation may be payer and to the extent authorized pursuant to the LSRTC generally is calculated in the same man-
carried over indefinitely. The ITC may be recap- Life Sciences Tax Incentive Program, be refund- ner as the RC, but may also include expenditures
tured if the eligible property for which the ITC is able to the taxpayer for the tax year in which the for research related to legally mandated clinical
claimed is disposed of or ceases to be in qualified qualified property giving rise to the LSRITC is trial activities performed both inside and outside
use prior to the end of its useful life (as deter- placed in service. If the taxpayer elects to make of Massachusetts. Unlike the RC, the LSRTC is
mined by the property’s depreciation period for the LSRITC refundable, then the carryover provi- not refundable for certified life sciences compa-
federal tax purposes). The ITC is neither refund- sions for this credit that would otherwise apply nies. See the Research Credit summary below.
able nor transferrable. The ITC may not reduce shall not be available. Certified life sciences com- The LSRTC is not transferrable. However, unused
the corporate excise due below the minimum panies qualifying for the Economic Development portions of the LSRTC may be carried forward for
amount, nor may the amount of the credit exceed Incentive Program Credit (EDIPC) may only take 15 years. In the event of the revocation of a com-
50% of the taxpayer’s liability. the EDIPC to the extent of an additional 2% of the pany’s certification as a life sciences company or
cost of the qualifying property. In the event a other disqualifying events, the LSRTC may be
To claim the ITC, complete Schedule H and enter company’s certification as a life sciences com- subject to recapture. For certified life sciences
the amount of ITC using credit code INVTAX on pany is revoked, the recapture of the LSRITC may companies subject to a minimum excise, the
Schedule CMS. Include both the completed be required. The LSRITC is not transferrable. For LSRTC cannot reduce the amount of the excise
Schedule H and Schedule CMS with the return. certified life sciences companies subject to a min- due to less than the minimum amount. For fur-
Life Sciences Refundable FDA User Fees imum excise, the LSRITC cannot reduce the ther information, see TIRs 13-6 and 08-23.
Tax Credit amount of the excise due to less than the mini-
Certified life sciences companies subject to tax mum amount. For further information, see TIRs To claim the LSRTC, complete a Schedule RLSC
under MGL ch 63, to the extent authorized by the 13-6 and 08-23. and enter the amount of LSRTC using credit code
LFSRDC on Schedule CMS.
Life Sciences Tax Incentive Program, may claim To claim the LSRITC, complete a Schedule RLSC
a Life Sciences Refundable Investment Tax Credit and enter the amount of LSRITC using credit Low Income Housing Tax Credit
(LSRITC) equal to 10% of the cost of qualifying code LFSITC on Schedule CMS. Taxpayers subject to tax under MGL ch 63 who
property acquired, constructed, reconstructed, or invest in a qualified low-income housing project
erected and used exclusively in Massachusetts. If Life Sciences Refundable Jobs Tax Credit located in Massachusetts may be eligible for the
the LSRITC exceeds the tax due, 90% of the bal- Certified life sciences companies subject to tax Low Income Housing Tax Credit (LIHTC). The De-
ance of the LSRITC may, at the option of the tax- under MGL ch 63, to the extent authorized by the partment of Housing and Community Develop-
payer and to the extent authorized pursuant to the Life Sciences Tax Incentive Program, may receive ment (DHCD) determines which low-income
Life Sciences Tax Incentive Program, be refund- a Life Sciences Refundable Jobs Tax Credit (LSR- housing projects will qualify for the LIHTC, which
able to the taxpayer for the tax year in which the JTC) in an amount determined by the Massachu- properties may generate an LIHTC for investors,
qualified property giving rise to the LSRITC is setts Life Sciences Center in consultation with the and ultimately allocates the amount of credit a
placed in service. If the taxpayer does not opt to DOR. A taxpayer claiming the LSRJTC must com- taxpayer may claim based on a total pool of
make the LSRITC refundable, then the LSRITC mit to the creation of a minimum of 50 net new $20,000,000. The LIHTC may be claimed in the
may be carried forward for up to 10 years. Certi- permanent full-time positions in Massachusetts. year that a “qualified Massachusetts project” is
fied life sciences companies qualifying for the If the LSRJTC claimed by a taxpayer exceeds the placed in service and for each of the four subse-
Economic Development Incentive Program Credit tax otherwise due, 90% of the balance of such quent taxable years. The properties must also
(EDIPC) may only take the EDIPC to the extent of LSRJTC may, at the option of the taxpayer and to meet the requirements established by Massachu-
an additional 2% of the cost of the qualifying the extent authorized by the Life Sciences Tax In- setts and federal laws, and be owned by a tax-
property. In the event a company’s certification as centive Program, be refundable. Excess LSRJTC payer who enters into a regulatory agreement
a life sciences company is revoked, the recapture amounts cannot be carried forward to subse- with DHCD.
of the LSRITC may be required. The LSRITC is quent taxable years. The LSRJTC is not trans-
not transferrable. For certified life sciences com- ferrable. The LSRJTC is subject to all of the Any unused LIHTC may be carried forward for the
panies subject to a minimum excise, the LSRITC requirements of the Life Sciences Tax Incentive next 5 tax years. Alternatively, unused credits may
cannot reduce the amount of the excise due to Program under MGL ch 23I. In the event of the be transferred. If an event or circumstance occurs
less than the minimum amount. For further infor- revocation of a company’s certification as a life that results, or would have resulted, in the recap-
sciences company or other disqualifying events, ture of any portion of a federal Low Income Hous-

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ing Credit, then the Massachusetts LIHTC may Low-Income Housing Credit Statement Form and Certified life sciences companies that have an RC
also be subject to recapture. The LIHTC is not re- Allotment Schedule LIHC: Low-Income Housing that exceeds the amount of the credit that may be
fundable. Credit Summary Form. For further information re- claimed under MGL ch 63, § 38M for a taxable
For taxpayers subject to a minimum excise under garding this credit, contact DHCD, Division of Pri- year may, to the extent authorized under the Life
MGL ch 63, the LIHTC may not reduce the excise vate Housing, at (617) 727-7824. Sciences Tax Incentive Program, elect to make
90% of the balance of the remaining credits re-
due below the minimum amount. Medical Device Tax Credit fundable. See TIR 08-23, section 5.
To claim the LIHTC, enter the LIHTC certificate Medical Device Companies taxable under MGL ch
number and the amount of LIHTC using credit 63 may be eligible to claim a Medical Device Tax To claim the RC, complete Schedule RC and enter
code LOWINC on Schedule CMS. Supporting Credit (MDTC). The MDTC is equal to 100% of the amount of RC using credit code REARCH on
documentation must be enclosed with the return the user fees actually paid by the medical device Schedule CMS. Include both the completed
or the LIHTC may be disallowed. For further in- company to the United States Food and Drug Ad- Schedule RC and Schedule CMS with the return.
formation on documentation see the Transfer ministration (FDA). To qualify for the MDTC, the Vanpool Credit
LIHC: Low-Income Housing Credit Statement user fees must be paid during the tax year for Business corporations subject to tax under MGL
Form and Allotment Schedule LIHC: Low-Income which the tax is due for pre-market submissions ch 63 may be eligible for a Vanpool Credit (VPC)
Housing Credit Summary Form. For further infor- (e.g., applications, supplements, or 510(k) sub- equal to 30% of the cost incurred during the tax-
mation regarding this credit, contact DHCD, Divi- missions) to market new technologies developed able year for the purchase or lease of company
sion of Private Housing, at (617) 727-7824. or manufactured in Massachusetts. The MDTC shuttle vans used by the corporation in an em-
may not be carried forward to subsequent tax ployer-sponsored ride sharing program in Mass-
Low Income Housing Donation Tax Credit years. The MDTC is not refundable. However, un- achusetts. The company shuttle vans must be
Taxpayers subject to tax under MGL ch 63 that used portions of the MDTC may be transferred to situated in Massachusetts on the last day of the
make a “qualified donation” of real or personal a purchasing company, who may carry over the corporation's taxable year and used to bring em-
property to certain non-profit entities for use in MDTC but must use it within 5 years of the is- ployees from their homes to their jobs or stu-
purchasing, constructing or rehabilitating a “qual- suance of the certificate. The purchasing com- dents from a public transportation facility to a
ified Massachusetts project” may be eligible to pany may not transfer the MDTC. The MDTC may school campus in Massachusetts. The amount of
claim a Low Income Housing Donation Tax Credit not reduce the purchasing company’s corporate VPC will be prorated for property disposed of or
(LIHDTC). This credit operates in a similar man- excise due below the minimum excise. no longer having a qualified use prior to the end
ner to the Low Income Housing Tax Credit
(LIHTC), but the LIHDTC is limited to 50% of the To claim the MDTC, enter the MDTC certificate of the tax year. Additionally, the VPC will be re-
amount of the “qualified donation,” which may be number and the amount of MDTC using credit captured if the property on which the VPC has
increased to 65% by the Department of Housing code MEDDVC on Schedule CMS. Certificate ap- been taken is disposed of or the property ceases
and Community Development (DHCD). In addi- plication forms and additional information are to be in qualified use prior to the end of its useful
tion, the LIHDTC may only be claimed in the year available at mass.gov/dor. life. No recapture is necessary if the property has
been in qualified use for more than 4 consecutive
that the “qualified donation” is made. However, Research Credit years. The VPC is neither refundable nor trans-
any unused LIHDTC may be carried forward for Business corporations subject to an excise under ferrable. For corporations subject to the corporate
the next 5 years. DHCD determines eligibility and MGL ch 63 that incur “qualified research ex- excise, the VPC may not reduce the corporate ex-
ultimately allocates the LIHDTC a taxpayer may penses” and “basic research payments” may be cise due below the minimum amount, nor may
claim based on a total pool of $20,000,000 able to claim a Research Tax Credit (RC). The RC the amount of VPC allowable in any one tax year
shared with the LIHTC. Only one-fifth of awarded closely parallels the federal research credit. Gen- exceed 50% of the corporation’s corporate excise
LIHDTC will count towards this pool. The LIHDTC erally, “qualified research expenses” include liability.
is not refundable but is transferrable in the same wages paid to employees, a portion of wages paid
manner as the LIHTC. to contractors, and amounts paid for supplies, To claim the VPC, complete Schedule VP and
The property must also meet the requirements but only if the services were performed for re- enter the amount of VPC using credit code VAN-
established by Massachusetts and federal laws search purposes or the supplies were used to POL on Schedule CMS. Include both the com-
and be owned by an owner who enters into a reg- conduct research in Massachusetts. The RC pleted Schedule VP and Schedule CMS with the
ulatory agreement with DHCD. If an event or cir- amount is limited to the first $25,000 of excise return.
cumstance occurs that results, or would have due, plus 75% of any excise due in excess of Veteran’s Hire Tax Credit
resulted, in the recapture of any portion of a fed- $25,000. The RC is neither refundable nor trans- Businesses subject to tax under MGL ch 63 that
eral Low Income Housing Credit, then the Mass- ferrable. Business corporations subject to a mini- hire veterans who live and work in Massachusetts
achusetts LIHDTC may also be subject to mum excise under MGL ch 63 cannot use the RC may be eligible for a Veteran’s Hire Tax Credit
recapture. For taxpayers subject to a minimum to reduce their tax due to below the minimum (VHTC). The credit is equal to $2,000 for each
excise under MGL ch 63, the LIHDTC may not re- amount. However, credits in excess of the tax- qualified veteran hired. The business must em-
duce the excise due below the minimum amount. payer’s liability may be carried over for 15 years, ploy fewer than 100 employees; be certified by
while credits not used because of the 75% rule
To claim the LIHDTC, enter the LIHDTC certificate the Commissioner of Veteran’s Services; and
may be carried over indefinitely. The deduction al-
number and the amount of LIHDTC using credit qualify for and claim the federal Work Opportunity
lowed to a corporation for any research expenses
code LIHDON on Schedule CMS. Supporting doc- Credit allowed under IRC § 51. A business may
generating an RC must be reduced by the amount
umentation must be enclosed with the return or be eligible for a second VHTC for the next taxable
of RC generated. This amount is added back to
the LIHDTC may be disallowed. For further infor- year if the veteran continues to work for the busi-
income on Schedule E, line 13.
mation on documentation see the Transfer LIHC: ness. In order to claim the VHTC, the primary

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place of employment and the primary residence
of the qualified veteran must be in Massachu-
setts, and the business corporation must obtain
certification that the veteran is a qualified veteran,
as defined in IRC § 51(d)(3), from the Depart-
ment of Career Services, no later than the em-
ployee’s first day of work. 
The VHTC is neither refundable nor transferrable.
Any amount of VHTC that exceeds the tax due in
the current taxable year may be carried forward
to any of the 3 subsequent taxable years. The
VHTC is available for qualified veterans hired after
July 1, 2017. A business subject to a minimum
excise under MGL ch 63 cannot use the credit to
reduce its tax due to below the minimum amount.
See TIR 17-10 for further information. 
To claim the VHTC, enter the VHTC certificate
number and the amount of VHTC using credit
code VETHIR on Schedule CMS.

Line Instructions
Registration Information
Enter the corporation’s principal business code
and Federal Identification number above the
name and address of the corporation.
Line 3
Check if the corporation is a Class 1 or Class 2
security corporation as classified by the Commis-
sioner of Revenue. For an explanation of the dif-
ferences between Class 1 and Class 2 security
corporations, please refer to the General Informa-
tion section of the instructions.
Line 11
Any corporation undergoing a voluntary dissolu-
tion should notify DOR in writing within 30 days
of the vote to dissolve. Mail to Massachusetts De -
part ment of Revenue, PO Box 7010, Boston, MA
02204.
Line 12
If there have been significant changes in your cor-
poration’s activities during the taxable year, en-
close a statement explaining these changes.
Security corporations must notify the Commis-
sioner of Revenue of any change in their activities
before the end of their taxable year.

Computation of Excise
For security corporations, qualified securities only
include instruments that were initially acquired
through a public exchange or another arms length
secondary market. See TIR 04-21 for further in-
formation.
The Computation of Excise section is used to cal-
culate either the Class 1 or Class 2 security cor-
poration excise. The respective excise rates are:

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                                                       13

Schedule A. Balance Sheet
Enter the beginning and end-of-year balance
sheet amounts for the taxable year covered by
this return. All values entered on Schedule A must
be in accordance with values on U.S. Form 1120
or 1120RIC, Part III. All corporations are required
to complete both columns A and B. All items in
Schedule A should be accompanied by a separate
schedule if an explanation is required.

Ownership Information
Line 1
If your corporation owned 50% or more of the
voting stock of another corporation or if any sin-
gle entity, e.g., corporation, individual, trust, part-
nership or estate, owned 50% or more of your
corpo ration’s voting stock, attach a schedule
showing name, address, Federal Identification or
Social Security number, and percentage of own-
ership amount.
Line 2
Include the highest amount owed to your corpo-
ration during the tax able year and/or the highest
amount owed by your corporation during the tax-
able year, whichever is applicable.

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