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                              ETM
PETIETN SE                    E I EVO
         PLACIDAM SVB LIBERTAT

                                            Commonwealth of Massachusetts                          Department of Revenue

                                     2020 Instructions

                                     for Massachusetts

                                     Corporation

                                     Excise Combined

                                     Report

                                     Form 355U

                                     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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                                                    Employees Working Remotely due                      required accompanying schedules. A corporation
Major 2020 Tax Law                                  to COVID-19: Massachusetts Tax                      is subject to this requirement if it is subject to a
                                                                                                        tax on its income under Massachusetts General
                                                    Implications                                        Law (MGL). ch 63, § 2, 2B, 32D, or 39 and is en-
Changes                                             Massachusetts declared a state of emergency and     gaged in a unitary business with one or more
                                                    issued several health and safety related restric-
Federal Conformity                                                                                      other corporations under common control,
                                                    tions in response to the 2019 novel Coronavirus
Massachusetts generally follows the Internal Rev-                                                       whether or not the other corporations are taxable
                                                    (“COVID-19”) pandemic. As a result, many busi-
enue Code (IRC) as currently in effect for Mass-                                                        in Massachusetts. The requirement to file on a
                                                    nesses implemented work-from-home require-
achusetts corporate excise tax purposes. For                                                            combined basis is not dependent upon an eviden-
                                                    ments for their employees. The Department has
more up-to-date and detailed information on tax                                                         tiary showing that there is a distortion of income
                                                    provided Massachusetts tax relief in situations in
changes and federal conformity please see the                                                           between corporations that are related by common
                                                    which employees work remotely due solely to the
dedicated 2020 Tax Changes page on our website                                                          ownership or that there is a lack of arm’s length
                                                    COVID-19 pandemic to minimize disruption for
at https://www.mass.gov/orgs/massachusetts-                                                             pricing in transactions between such corpora-
                                                    corporations doing business in Massachusetts.
department-of-revenue.                                                                                  tions.
                                                    See 830 CMR 62.5A.3: Massachusetts Source In-
Coronavirus Aid, Relief, and                        come of Non Residents Telecommuting due to          The requirement to file a combined report applies
                                                    the COVID-19 Pandemic, and TIR 20-15: Revised       regardless of whether or not the corporations file
Economic Security Act                               Guidance on the Massachusetts Tax Implications      a consolidated federal return. See 830 CMR
On March 27, 2020, Public Law 116-136, the          of an Employee Working Remotely due to the          63.32B.2.
Coronavirus Aid, Relief, and Economic Security      COVID-19 Pandemic. These rules are effective        The non-income measure of excise for members
Act (the CARES Act), was signed into law. The       until 90 days after the state of emergency in       of a combined group is still determined on a sep-
CARES Act provides for federal changes to a va-     Massachusetts is lifted.                            arate company basis, but the non-income calcu-
riety of provisions of the Internal Revenue Code
(IRC) that affect business entities subject to the  The Department will not consider the presence of    lation is made on schedules attached to the Form
corporate and ﬁnancial institution excise. In re-   one or more employees working remotely from         355U. A separate return (Form 355 or Form
sponse to the CARES Act, the Department of Rev-     Massachusetts solely due to a Pandemic-Related      355S, as appropriate) is only required if the cor-
enue (DOR) issued TIR 20-9: Massachusetts Tax       Circumstance, including the presence of business    poration’s federal taxable year ends on a a differ-
Implications of Selected Provisions of the Federal  property reasonably needed for such persons’        ent date than the taxable year of the combined
CARES Act, which addresses various provisions       use while working remotely, to be sufficient in     report. See Special Situations below.
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,   What Is Nexus for Massachusetts
ness, (2) modifications to the federal limitations  such presence will not, of itself, cause a corpora- Corporate Excise Purposes?
on net operating losses, (3) modifications to lim-  tion to lose the protections of Public Law 86-272.  A corporation that owns or uses any part of its
itation on business interest deduction, (4) techni- Relatedly, for corporate apportionment purposes,    capital or other property, exercises or continues its
cal amendments regarding qualified improvement      (i) services performed by such persons in Mass-     charter or is qualified to, or is actually doing busi-
property, and (5) modification of limitation on     achusetts will not increase the numerator of the    ness in Massachusetts has nexus with the Com-
charitable contributions during 2020. TIR 20-9 is   employer’s payroll factor, and (ii) the presence in monwealth and must pay a corporate excise.
available on DOR’s website.                         Massachusetts of business property reasonably       Doing business in the state as referenced in MGL
                                                    needed for such persons’ use while working re-      ch 63, § 39 includes:
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,   Massachusetts General Laws (MGL) ch 62C, §§
the Department of Revenue (DOR) issued written      11 and 12 require C corporations to file their tax
guidance addressing the impact of the TCJA in       returns on or before the 15th day of the fourth
Massachusetts. See e.g., TIR 19-17: Application     month following the close of each taxable year
of IRC § 163(j) Interest Expense Limitation to      (April 15 in the case of corporations filing on a
Corporate Taxpayers, TIR 19-11: Legislation Im-     calendar year basis). The filing due date for S cor-
pacting the Massachusetts Tax Treatment of Se-      poration tax returns is the 15th day of the third
lected International Provisions of the Federal Tax  month following the close of each taxable year.
Cuts and Jobs Act, TIR 19-9: Extension of Time      See TIR 17-5.
to File Short-Year Returns Resulting from Part-     For most calendar year filers, returns are due
nership Technical Termination, TIR 19-7: Mass-      April 15, 2021.
achusetts Treatment of Investments in Qualiﬁed
Opportunity Zones, and TIR 19-6: Impact of the      When must a combined report be filed?
Federal Tax Cuts and Jobs Act on a Taxpayer’s       Massachusetts requires certain corporations en-
Overall Method of Accounting for Massachusetts      gaged in a unitary business to calculate their in-
Purposes. All of these TIRs are available on the    come on a combined basis by preparing and filing
DOR’s website.                                      a combined report on Form 355U along with all

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sist of the mere solicitation of orders for sales of
tangible personal property filled by shipment or
delivery from a point outside Massachusetts after
such orders are sent outside the state for ap-
proval or rejection. PL 86-272 does not apply to
a corporation that sells services or licenses intan-
gible property in Massachusetts. Also, PL 86-272
does not apply where the in-state business activ-
ity by or on behalf of a corporation, however con-
ducted, includes activity that is not entirely
ancillary to the solicitation of orders of tangible
personal property. Activities that take place after
a sale will ordinarily not be considered entirely
ancillary to the solicitation of such sale. A corpo-
ration that has nexus with the Commonwealth
and is excluded from income-based taxation by
PL 86-272 remains liable for the non-income
measure of excise.
The following are activities that ordinarily fall
within the scope of “solicitation” under PL 86-
272:

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Filing Form 355U Principal Reporting Taxpayers filing a 355U that meet certain payment culations must be completed separately by each
Corporation requirements will be given an automatic seven taxable member.
The combined report required by MGL ch 63, § month extension of time to file Form 355U. For
32B is filed on behalf of all members of the group further information, see TIR 15-15. Common schedules to be submitted
by a principal reporting corporation, which must Note: An extension of time to file is not valid if with the Form 355U
be a taxable member of the combined group un- the corporation fails to pay at least 50% of the A brief description of some schedules that, de-
less otherwise approved by the Commissioner total tax liability or the minimum tax of $456, pending on the circumstances, may be required
(see DD 15-2). If the combined group has a com- which ever is greater, through estimated payments with Form 355U is shown below. Instructions for
mon parent corporation that is a taxable member or with an extension worksheet on or before the these schedules are published separately.
of the combined group that parent corporation is due date of the return. Note: Schedules NIR, A-1, A-2 and A-3 are no
required to be the principal reporting corporation. longer required for taxable years beginning in
If the combined group does not have a common Any tax not paid on or before the due date without
parent or that corporation is not a taxable mem- regard to the extension shall be subject to an in- 2015.
ber of the group, the principal reporting corpora- terest charge. Schedule U-M
tion shall be the taxable member of the group that S corporations that are participating in a combined Each member of the combined group, whether
reasonably expects to have the largest amount of report of their net income to Massachusetts must taxable or not, reports its own income and ex-
Massachusetts taxable net income on a recurring file Form 355U. For more information see 830 penses for federal income tax purposes together
basis. CMR 62C.11.1: Return Due Dates for S Corpora- with certain adjustments. An additional Schedule
As provided in MGL ch 62C, § 11A, the Commis- tions Included in a Combined Group. U-M is also filed to show the Massachusetts inter-
sioner may treat the principal reporting corpora- In addition, an S corporation that pays both the company eliminations, if any. Please see TIR 19-
tion as the agent for all corporations that income and non-income measure of excise with 17: Application of IRC § 163(j) Interest Expense
participate or are required to participate in the Form 355U must also submit Form 355S or 63- Limitation to Corporate Taxpayers, for more in-
group with respect to all notices and actions FI as an informational return, enclosing Sched- formation on how to calculate the interest ex-
authorized or required by chapter 62 or chapter ules S and SK-1, although no additional tax is due pense deduction.
63. Such notices and actions include, without lim- with that filing. Such informational filing is due on Schedule U-CI
itation: (i) notices and actions associated with or before the 15th day of the third month after the The amounts on all Schedules U-M are totaled to
processes such as assessment of tax; (ii) execu- close of the taxable year, calendar or fiscal. show the combined income of the group before
tion of consents to extend the time for assess- certain Massachusetts adjustments. A single
ment of tax; (iii) abatements; (iv) hearing Organization and Structure of Schedule U-CI is filed with each Form 355U.
requests; (v) refunds; and (vi) collection activity. Form 355U
The principal reporting corporation reports the Form 355U shows the aggregate tax liability of Schedule U-E
following information on behalf of all members of the combined group, declares whether the com-
the combined group when filing Form 355U: the bined group is making or filing pursuant to either
designation of the principal reporting corporation, a worldwide or affiliated group election and shall
the elections allowed or required to be made by provide other general information on behalf of the
MGL ch 63, the calculation of the group’s com- combined group. Massachusetts requires all cor-
bined income, the determination of the appor- porations that are part of the combined group to
tioned shares of the taxable members, and the use DOR schedules to report their income as de-
calculation of the income tax liabilities of the vari- termined for federal income tax purposes and
ous members and the payments made by the certain adjustments. This information must be
group. provided separately for each member of the com-
bined group on the specific DOR schedules de-
Form 355U Electronic Filing
scribed below.
Form 355U, and all pertinent schedules, must be
filed electronically. Submissions other than by The basic principles that underlie the Form 355U
electronic filing will not be considered a timely are as follows. The combined net income of the
filed return. Detailed regulatory guidance with re- group and the combined apportionment denomi-
spect to the Massachusetts combined reporting nators are used by each taxable member of the
law is set forth at 830 CMR 63.32B.2. group to calculate its income subject to tax for
the taxable year. Each taxable member of the
group must separately calculate its excise using
When Are Returns its Massachusetts apportioned share of the
group’s income. Any other excise or tax due
Due? under MGL ch 63 (e.g., the non-income measure
of excise due from business corporations, any re-
Form 355U returns, together with payment in full capture taxes, etc.) and credits taken are also re-
of any tax due, must be filed on or before the 15th ported as part of the taxable member’s calculation
day of the fourth month after the close of the tax- of its excise. DOR schedules showing these cal-
able year, calendar or fiscal. See TIR 17-5.

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each member to the consolidated return income        Schedule DRE                                         cated or apportioned to Massachusetts is re-
as reported federally.                               An entity that is disregarded as a separate entity   ported on this schedule.
Schedule FE                                          from its owner for federal income tax purposes       Schedule NOL
Corporations required to file U.S. Form 5471 with    shall similarly be disregarded for purposes of       A taxable member that is eligible for a net operat-
respect to certain foreign corporations must file    MGL ch 63. A taxable member that is the owner        ing loss deduction calculates the amount of the
Schedule FE with their Massachusetts return for      of such an entity must identify each such disre-     available NOL and the amount taken using this
each such foreign corporation. If any member of      garded entity by filing Schedule DRE. An S cor-      schedule. The NOL deduction taken is reported on
the combined group files U.S. Form 5471, the         poration must similarly identify its QSUB(s) by      Schedule U-ST.
principal reporting corporation files Schedule FE    filing Schedule DRE. Note that disregarded enti-
on behalf of that member.                            ties owned by corporations that are non-taxable      Schedule U-NOLS
                                                     members are not reported.                            A taxable member of a combined group which
Where the U.S. Form 1120 is submitted as an at-                                                           has an available NOL deduction which it cannot
tachment to the Massachusetts Form 355U and          Schedule U-MSI                                       use may share an NOL generated by the unitary
includes the US Form 5471 filed with respect to a    Each taxable member of the group separately cal-     business with other members of the combined
foreign corporation, the member is not required      culates its Massachusetts numerator for the pur-     group provided such other members (a) are eli-
to also submit Schedule FE for that foreign cor-     pose of apportioning the combined income.            gible to take a NOL deduction and (b) filed a com-
poration. See Schedule FE instructions for more      These figures, together with the group denomina-     bined report under 830 CMR 63.32B.2 with the
information.                                         tors calculated in Part 2 of the Schedule U-E are    corporation that has the NOL for the tax year to
                                                     used to calculate the property, payroll and sales    which the NOL relates. Any losses from such tax
Schedule TTP                                         factors used to calculate the taxable member’s       years have either been used or expired. The total
A member that takes a treaty-based return posi-      apportionment percentage for determining its         amount of all such shared losses is reported by
tion must disclose that position when filing its     Massachusetts apportioned share of the income        the corporation taking the deduction on Schedule
Massachusetts Form 355U. A taxpayer takes a          reported on Schedule U-E. The apportionment          U-ST.
treaty based return position by maintaining that a   factors are weighted for each corporation based
treaty of the U.S. overrules or modifies a provi-    on the provisions of MGL ch 63 under which that      Schedules A, B, C, D, RNW and F
sion of the IRC and thereby causes (or potentially   member is  taxable.                                  These schedules are used to calculate the non-in-
causes) a reduction of income required to be                                                              come measure of excise under the provisions of
shown on the return. A member (including a non-      Effect of Federal Tax Reform on                      MGL ch 63, § 39 (a) (1) and are not completed by
taxable member) of the Massachusetts combined        Apportionment Factors of Combined                    financial institutions. For years beginning in 2011,
group calculating income under a treaty position                                                          corporations with federal taxable years ending at
                                                     Group Members
indicates this on Schedule U-M and provides fur-                                                          the same time as the common taxable year used
                                                     In the case of one or more business corporations
ther information about the treaty and its effect on                                                       by the group to determine and pay the income
                                                     or financial institutions filing as members of a
income by attaching Schedule TTP.                                                                         measure of excise must include in the combined
                                                     combined group, each taxable member separately
Schedule U-INS                                       determines its apportionment percentage pur-         report the calculation of the non-income measure.
A member claiming a deduction for insurance          suant to the provisions of MGL ch 63, § 2A or §      Such members must include Schedules A, B and
premiums or other amounts paid directly or indi-     38 (as applicable) subject to the rules in MGL ch    either Schedule C, D or RNW showing the calcu-
rectly to an affiliate that is not a member of the   63, § 32B and 830 CMR 63.32B.2(7). Thus the          lation of the non-income measure of excise with
Massachusetts combined group and that qualifies      apportionment calculation for the combined           the return. Schedule F must be enclosed if the
as a life insurance company as defined in IRC §      group will follow in the same manner as for a        corporation, based on its own activities, is taxable
816 of the code or an insurance company subject      business corporation or financial institution filing in another state on its income. The non-income
to tax imposed by IRC § 831 must disclose the        a separate tax return. For more information on       measure is reported on Schedule U-ST.
deduction.                                           differences related to the impact of the TCJA in
                                                     Massachusetts see TIR 19-17: Application of IRC      Schedule CMS: Tax Credits
Schedule ABI                                         § 163(j) Interest Expense Limitation to Corporate    Financial institutions, insurance companies, busi-
A member claiming a deduction for interest paid      Taxpayers; TIR 19-11: Legislation Impacting the      ness corporations, and other taxpayers subject to
or accrued to a related party (in cases where such   Massachusetts Tax Treatment of Selected Inter-       tax under MGL ch 63 may be eligible for certain
expense is not eliminated in the combined report-    national Provisions of the Federal Tax Cuts and      tax credits in Massachusetts. Credits may be
ing that determines the taxable income of the        Jobs Act, TIR 19-9: Extension of Time to File        used to offset a tax due, may be passed or shared
group for Massachusetts purposes) must com-          Short-Year Returns Resulting from Partnership        with another person or entity, or, in some cases
plete this schedule explaining the basis for the de- Technical Termination, TIR 19-7: Massachusetts       credits may be fully or partially refundable. MGL
duction.                                             Treatment of Investments in Qualified Opportunity    ch 63 taxpayers with credits available for use in
Schedule ABIE                                        Zones, and TIR 19-6: Impact of the Federal Tax       the current taxable year must file a Schedule CMS
A member claiming a deduction for intangible ex-     Cuts and Jobs Act on a Taxpayer’s Overall Method     to claim most credits.
pense paid or accrued to a related party (in cases   of Accounting for Massachusetts Purposes.            For each credit claimed on a Schedule CMS, re-
                                                                                                          port the amount of the credit available for use and
where such expense is not eliminated in the com-     Schedule U-MTI                                       the amount of credit claimed to reduce tax for the
bined reporting that determines the taxable in-      A taxable member may have income from non-           current taxable year. For pass-through entities, re-
come of the group for Massachusetts purposes)        unitary sources; if such income is taxable in        port  the  amount  of  credit  distributed  to
must complete this schedule explaining the basis     Massachusetts, the amount of such income allo-       partners/shareholders/beneficiaries in the credit
for the deduction.

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                                                                             7

shared column. Taxpayers also report the amount       through entity or a credit transfer should report    to be treated as a refundable credit, which may
of a refundable credit they are using to request a    such credit in Section 3 or 4, as applicable.        be either 90% or 100% of the reduction. See TIR
refund of tax. See the Credit Manager Schedule                                                             13-6, Example 3, for an illustration.
Instructions for more information on how to           Section 2. Refundable Credits                        Note: Do not report the refundable Film Incentive
complete the Schedule CMS and claim the cred-         Section 2 is for reporting refundable credits the    Credit in this section because these credits are is-
its.                                                  taxpayer is using to request a refund. The Film In-  sued new certificate numbers from the DOR
                                                      centive Credit should always be included in Sec-
Credits reported on the Schedule CMS are gener-                                                            when they are received from a pass-through en-
                                                      tion 2 to the extent that the taxpayer is requesting
ally identified either by a certificate number as-                                                         tity or a credit transfer. If the taxpayer is request-
                                                      a refund. However, a taxpayer that received a re-
signed by the issuing agency (which may be the                                                             ing a refund of the Film Incentive Credit, it should
                                                      fundable credit on a Massachusetts K-1 from a
DOR) or by the tax period end date in which the                                                            be reported in Section 2.
                                                      pass-through entity or a credit transfer should re-
credit originated. If a credit has been assigned a
                                                      port such credit in Section 4, to the extent that
certificate number, the certificate number must be                                                         List of Credit Names and Credit
                                                      the taxpayer is requesting a refund. For each re-
included on the Schedule CMS. A taxpayer that                                                              Codes
                                                      fundable credit, report the amount of the credit
does not include an assigned certificate number                                                            The following table identifies various credits that
                                                      available after taking into consideration any
on the Schedule CMS will not be allowed the                                                                may be available to a taxpayer subject to tax
                                                      amount of the credits that may have been taken
credit on the tax return and will have their tax lia-                                                      under MGL ch 63 and that must be claimed on a
                                                      to offset a tax or shared as reported in Section 1
bility adjusted by the DOR. Be sure to omit hy-                                                            Schedule CMS.
                                                      of this schedule. Enter the amount by which the
phens, spaces, decimals and other special
                                                      available credit balance is being reduced and the
symbols when entering the certificate number.
                                                      amount to be treated as a refundable credit,
Also, enter the number from left to right.                                                                 List of Credit names and Credit code
                                                      which may be either 90% or 100% of the reduc-
Likewise, a taxpayer that is required to complete     tion. See TIR 13-6, Example 3, for an illustration.  Apprenticeship Tax Credit………..APPCRD*
a separate schedule to claim a credit must include                                                         Brownfields . . . . . . . . . . . . . . . . . . BRWFLD
the separate schedule with the taxpayer’s return      Section 3. Non-Refundable Credits                    Certified Housing . . . . . . . . . . . . . . CRTHOU
filing. Failure to do so may result in the credit     Received from Massachusetts K-1
being disallowed.                                                                                          Community Investment . . . . . . . . . CMMINV*
                                                      Schedules
If, by operation of MGL ch 63, § 32C or another       Section 3 is for reporting credits the taxpayer re-  Conservation Land . . . . . . . . . . . . . CNSLND*
provision of law, a credit normally identified by     ceived on a Massachusetts K-1 schedule (SK-1,        Dairy Farm . . . . . . . . . . . . . . . . . . . DAIFRM*
tax period end date is eligible for indefinite carry- 2K-1 or 3K-1) that the taxpayer is using  (i) to off-
over, the credit should be reported as “non-expir-    set or reduce the taxpayer’s total tax due (ii) to   EDIP . . . . . . . . . . . . . . . . . . . . . . . . EDIPCR*
ing” and identification of the tax period of origin   pass to any partner, shareholder or beneficiary of   EDIP-Vacant Storefront Credit…....VACSTR*
is not necessary.                                     the taxpayer or (iii) to share with taxpayer affili- Employer Wellness. . . . . . . . . . . . . EMPWLL
                                                      ates. The Brownfields Credit, Film Incentive
Overview of Schedule CMS                              Credit, or Medical Device Credit should never be     EOAC . . . . . . . . . . . . . . . . . . . . . . . EOACCR
The following is a brief overview of the Schedule     included in Section 3.                               Film Incentive . . . . . . . . . . . . . . . . . FLMCRD*
CMS sections and where certain credits should
                                                      Note: Do not report the Brownfields Credit, Film
be reported. If a taxpayer is using a credit to re-                                                        Harbor Maintenance. . . . . . . . . . . . HRBMNT
                                                      Incentive Credit, and Medical Device Credit in this
duce a taxpayer’s current year tax liability,                                                              Historic Rehabilitation . . . . . . . . . . HISRHB
                                                      section because these credits are issued new cer-
whether it is a non-refundable credit or a refund-                                                         Investment Tax . . . . . . . . . . . . . . . . INVTAX
                                                      tificate numbers from the DOR when they are re-
able credit, the credit should be reported in Sec-
tion  1  or  3  of  the  Schedule  CMS.  Only  a      ceived from a pass-through entity or a credit        Life Science (FDA) . . . . . . . . . . . . . LFSFDA*
refundable credit that the taxpayer is seeking a re-  transfer. These credits should always be reported
                                                                                                           Life Science (ITC). . . . . . . . . . . . . . LFSITC*
fund for should be reported in either Section 2 or    in Section 1, unless the taxpayer is requesting a
4 of the Schedule CMS. Generally, a credit should     refund of the Film Incentive Credit.                 Life Science (Jobs). . . . . . . . . . . . . LFSJOB*
only be reported in one section on the Schedule                                                            Life Science (RD) . . . . . . . . . . . . . . LFSRDC
                                                      Section 4. Refundable Credits
CMS unless a portion of it is being used to offset                                                         Low-Income Housing. . . . . . . . . . . LOWINC
a tax and a portion is being refunded.                Received from Massachusetts K-1
                                                      Schedules                                            Low-Income Housing Donation . . . LIHDON
Section 1. Non-Refundable Credits                     Section 4 is for reporting credits the taxpayer re-  Medical Device . . . . . . . . . . . . . . . . MEDDVC
Section 1 is for reporting credits the taxpayer is    ceived on a Massachusetts K-1 schedule (SK-1,        Research. . . . . . . . . . . . . . . . . . . . . REARCH*
using (i) to offset or reduce the taxpayer’s total    2K-1 or 3K-1) and that the taxpayer is using to
tax due (ii) to pass to any partner, shareholder or   request a refund. The Film Incentive Credit should   Vanpool . . . . . . . . . . . . . . . . . . . . . VANPOL
beneficiary of the taxpayer or (iii) to share with    never be included in Section 4. For each refund-     Veteran’s Hire . . . . . . . . . . . . . . . . . VETHIR
taxpayer affiliates. The Brownfields Credit, Film     able credit, report the amount of the credit avail-
                                                                                                           *These credits may be partially or fully refund-
Incentive Credit, or Medical Device Credit should     able after taking into consideration any amount of
                                                                                                           able. See Schedule CMS instructions for further
always be included in Section 1, unless the tax-      the credits that may have been used to offset a
                                                                                                           information.
payer is requesting a refund of the Film Incentive    tax or shared as reported in Section 3 of this
Credit. However, a taxpayer that received a credit    schedule. Enter the amount by which the available    Note: Certified life sciences companies with a Re-
on a Massachusetts K-1 schedule from a pass-          credit balance is being reduced and the amount       search Credit exceeding the amount of credit that
                                                                                                           may be claimed under MGL ch 63, § 38M for a

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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
Credit Recapture Schedule able year may also be eligible for a credit in the amount up to 25% of the costs of qualified pro-
The Credit Recapture Schedule (CRS), which subsequent taxable year, provided that the Divi- ject expenditures as defined in MGL ch 40V, § 1.
eliminates Schedule RF, lists each credit for which sion of Apprentice Standards again certifies that Eligibility for and the amount of CHDC awarded
a recapture calculation must be made. the apprentice remains employed as an appren- are determined and administered by the Depart-
Certain Massachusetts tax credits are subject to tice during the subsequent taxable year. ment of Housing and Community Development
recapture as specified in the statute authorizing The ATC is not transferrable but is refundable. (DHCD). The CHDC is not refundable, but unused
the credit (e.g. the investment tax credit is subject The ATC is available for tax years beginning on or amounts may be transferred or carried forward
to recapture under MGL ch 63, § 31A(e) if an asset after January 1, 2019. See TIR 18-13 for further for 10 years. See TIRs 16-15, 10-15, and 10-14
for which the credit was taken is disposed of be- information. for further information.
fore the end of its useful life). Recapture may also To claim the ATC, enter the ATC certificate num- To claim the CHDC, enter the CHDC certificate
be triggered if the corporation no longer qualifies ber and the amount of ATC using credit code AP- number and the amount of CHDC using credit
for the credit (as when a manufacturing corpora- PCRD on Schedule CMS. code CRTHOU on Schedule CMS.
tion ceases to qualify as such or a corporation’s
status as a Life Sciences Company is terminated Brownfields Tax Credit Community Investment Tax Credit
as discussed in TIR 13-6.) Taxpayers subject to tax under MGL ch 63 and Taxpayers subject to tax under MGL ch 63 may
If a recapture calculation is required, the amount nonprofit organizations may be eligible to claim a be able to claim a Community Investment Tax
of the credit allowed is redetermined and the re- Brownfields Tax Credit (BTC) for amounts ex- Credit (CITC) for cash contributions made to a
duction in the amount of credit allowable is re- pended to clean up contaminated property in community partner to support implementation of
captured to the extent the credit was taken or Massachusetts in an amount equal to either 25% its community investment plan, or to a commu-
used in a prior year. See DD 89-7. Taxpayers who or 50% of the cost. The cleanup must begin on nity partnership fund. The CITC is equal to 50%
have a recapture calculation must complete this or before August 5, 2023, and costs must be in- of the total contribution made by the taxpayer and
schedule whether or not a recapture tax is deter- curred before January 1, 2024, and equal or ex- cannot be claimed for contributions of less than
mined to be due. ceed 15% of the assessed value of the property $1,000. The Department of Housing and Commu-
before the beginning of the cleanup. Contami- nity Development (DHCD) is responsible for de-
For credits tracked by certificate numbers, enter nated properties must be owned or leased for termining which contributions qualify for the CITC
each certificate number and the associated cred- business purposes, reported to the Massachu- and the actual amount of the CITC awarded. The
its separately. For credits not tracked by certificate setts Department of Environmental Protection CITC is not transferrable. However, the CITC is re-
number, enter credits separately by type and the (DEP), cleaned up in compliance with DEP’s stan- fundable, or, alternatively, may be carried forward
year to which they relate. List only those credits dards, and located in an economically distressed for 5 years. For further information, see 760 CMR
and certificate numbers or tax years for which a area identified by DEP. Unused portions of BTC 68.00, 830 CMR 62.6M.1, and TIRs 16-15, 13-
reduction in the credit is being calculated. may be carried forward for the next 5 years. If a 15, and 12-10.
For more information and examples, see the BTC recipient does not maintain the property in To claim the CITC, enter the CITC certificate num-
Credit Recapture Schedule instructions. compliance with standards set out by DEP, the ber and the amount of CITC using credit code
credit may be recaptured. The BTC is not refund- CMMINV on Schedule CMS.
Brief Summary of Available Credits on able. For taxpayers subject to a minimum excise
Schedule CMS under MGL ch 63, the BTC cannot reduce the ex- Conservation Land Tax Credit
The following are brief summaries describing the cise due below the minimum amount. The BTC is Taxpayers subject to tax under MGL ch 63 that
specific credits that may be available to a taxpayer also subject to the 50% limitation for taxpayers make qualified donations of certified land to a
subject to tax under MGL ch 63 and that must be subject to tax under MGL ch 63, § 39. public or private conservation agency in Mass-
claimed on a Schedule CMS. achusetts may be eligible for a Conservation Land
The BTC may be transferred, sold or assigned to Tax Credit (CLTC). The Executive Office of Energy
Apprenticeship Tax Credit another taxpayer with a liability under MGL ch 62 and Environmental Affairs (EEA) ultimately deter-
Businesses corporations subject to tax under or 63, or to a nonprofit organization. A taxpayer mines which donations qualify for CLTC and the
MGL ch 63 that employ qualified apprentices may must complete a Form BCA, Brownfields Credit actual amount of CLTC attributable to the dona-
be eligible for an Apprenticeship Tax Credit (ATC). Application, and submit it to DOR. If approved, tion. The CLTC is equal to 50% of the fair market
The credit is equal to the lesser of $4,800 or 50% DOR will issue a certificate reflecting the amount value of the donated certified land but may not
of the wages paid by the business to each quali- of the BTC awarded. The party receiving the BTC exceed $75,000. The CLTC is refundable but is
fied apprentice it hires. Business corporations are must include the certificate number with each tax not transferable. Taxpayers who claim CLTC may
eligible for up to $100,000 in credits each calen- return in which the credits are being applied. BTC not claim any other credit or deduction in the
dar year. To claim the credit, the primary place of application forms, including Form BCA, and addi- same tax year for the costs related to the same
employment of the apprentice must be in Mass- tional information are available at mass.gov/dor. donated, certified land. For further information,
achusetts, the business corporation employing To claim the BTC, enter the BTC certificate num- see 301 CMR 14.00, and 830 CMR 62.6.4.
the apprentice must register with the Division of ber and the amount of BTC using credit code BR-
Apprentice Standards as an apprenticeship pro- WFLD on Schedule CMS.
gram sponsor and enter into apprenticeship

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To claim the CLTC, enter the CLTC certificate completed Schedule EOAC and Schedule CMS EDIP Credit for Projects Certified on or
number and the amount of CLTC using credit with the return. after January 1, 2017
code CNSLND on Schedule CMS. The EDIPC provisions were significantly changed
Economic Development Incentive Program
for projects certified on or after January 1, 2017.
Dairy Farm Tax Credit Credit for Projects Certified on or After
For projects certified by the EACC on or after Jan-
Massachusetts dairy farmers taxable under MGL January 1, 2010 and Before January 1, uary 1, 2017, the EDIPC for taxpayers subject to
ch 63 may be eligible for a Dairy Farm Tax Credit 2017 tax under MGL ch 63 is determined by the EACC
(DFTC) based on the amount of milk produced For projects certified by the EACC on or after Jan- based on numerous factors set forth in MGL ch
and sold during the taxable year when the cost of uary 1, 2010 and before January 1, 2017, the 23A § 3D. The EACC may award a refundable
milk drops below a price based on federal stan- Economic Development Incentive Program Credit EDIPC to any certified project. Unless the EDIPC
dards. The dairy farmer must have a certificate of (EDIPC) is available to taxpayers subject to tax awarded is refundable, the EDIPC may not offset
registration as a Massachusetts dairy farm from under MGL ch 63 with respect to certified pro- more than 50% of the excise due. Carryover of
the Massachusetts Department of Agricultural jects as defined under MGL ch 23A. The EDIPC is unused EDIPC is available only to the extent
Resources (MDAR). The total amount of DFTC equal to a percentage of the cost of qualifying authorized by the EACC. Recapture is required
granted through the program cannot exceed property purchased by a certified project for busi- only if the EACC revokes the certification of a pro-
$6,000,000 in any year. The DFTC is refundable ness use within Massachusetts. As part of the ject. The EDIPC is not transferable. For taxpayers
but is not transferrable. project certification, the EACC may (but is not re- subject to a minimum excise under MGL ch 63,
To claim the DFTC, enter the MDAR-issued cer- quired to) award a credit under the program and the EDIPC may not reduce the excise due below
tificate number and the amount of DFTC from the determine the percentage of the cost of the prop- the minimum amount. See TIRs 16-15 and 10-01
MDAR’s Dairy Farmer Certified Tax Credit State- erty to be used to determine the credit. In addi- for further information.
ment using credit code DAIFRM on Schedule tion, the EACC may award an EDIPC that is
CMS. refundable. To qualify for the EDIPC, the qualify- To claim the EDIPC, complete Schedule EDIP and
ing property must be used exclusively in the cer- enter the amount of EDIPC using credit code
Economic Opportunity Area/Economic tified project in Massachusetts and must meet the EDIPCR on Schedule CMS. Also, enter the EACC-
Development Incentive Program Credits same tests imposed for the 3% ITC. issued certificate number on Schedule CMS. In-
clude both the completed Schedule EDIP and
Economic Opportunity Area Credit Unless the EDIPC awarded is refundable, the Schedule CMS with the return.
Taxpayers subject to tax under MGL ch 63 that credit may not offset more than 50% of the tax
participated in projects certified by the Economic due. Carryover of unused EDIPC is available only EDIP Credit for Vacant Storefronts
Assistance Coordinating Council (EACC) before to the extent authorized by the EACC. The EACC Effective January 1, 2019, awards of EDIPC are
January 1, 2010 and in effect through December may, in consultation with DOR, limit (but not ex- also available as a Vacant Storefront Credit (VSC)
31, 2016, may be eligible to claim an Economic pand) the EDIPC to a specific dollar amount or to taxpayers subject to tax under MGL ch 63 that
Opportunity Area Credit (EOAC) equal to 5% of time duration or in any other manner deemed ap- occupy vacant storefronts in downtown areas
the cost of qualifying property purchased for propriate by the EACC. St. 2009, c. 166, § 18. For that have been designated as Certified Vacant
business use within a certified project within an example, the EACC may limit the EDIPC available Storefront Districts. To claim the VSC a taxpayer
Economic Opportunity Area (EOA). A certified with respect to a particular project to a specific must apply for and obtain certification from the
project is a project approved by the EACC. To dollar maximum, even if the actual dollar amount EACC and must commit to occupy the vacant
qualify for the EOAC, the property must be used of the qualifying purchases would otherwise gen- storefront for not less than 1 year. The taxpayer
exclusively by the certified project in an EOA and erate a higher credit amount. Similarly, the EACC does not need to invest in improvements or cre-
must meet the same tests imposed for the 3% may limit the otherwise applicable credit carry ate new jobs to claim the VSC. The EACC awards
Investment Tax Credit (ITC) (see ITC summary forward period provided by MGL ch 63, § 38N(d). the VSC on a competitive basis, taking into ac-
below). The EOAC cannot offset more than 50% The EDIPC may be subject to recapture if a tax- count the factors set forth in MGL ch 23, § 3C.
of the tax due. Any unused EOAC may be carried payer’s business is decertified by the EACC, or a The amount of VSC available to taxpayers occu-
forward for 10 years, while credits not used be- taxpayer stops using the qualifying property in a pying vacant storefronts is limited to $500,000 in
cause of the 50% limitation may be carried over certified project before the end of the property’s a calendar year.
indefinitely. The EOAC may be subject to recap- useful life. The EDIPC is not transferable. For tax- The VSC is not transferrable but is refundable. For
ture if a taxpayer’s business is decertified by the payers subject to a minimum excise under MGL additional information about the credit, contact
EACC, or a taxpayer stops using the qualifying ch 63, the EDIPC may not reduce the excise due the Massachusetts Office of Business Develop-
property in a certified project before the end of below the minimum amount. See TIRs 16-15, 14- ment at 617-973-8600.
the property’s useful life. The EOAC is neither re- 13, 10-15, and 10-1 for further information.
To claim the VSC, enter the amount of the VSC
fundable nor transferrable. For taxpayers subject To claim the EDIPC, complete Schedule EDIP and using credit code VACSTR on Schedule CMS.
to a minimum excise under MGL ch 63, the EOAC enter the amount of EDIPC using credit code Also, enter the EACC-issued certificate number on
may not reduce the excise due below the mini- EDIPCR on Schedule CMS. Also, enter the EACC- Schedule CMS.
mum amount. The EOAC is not available to certi- issued certificate number on Schedule CMS. In-
fied projects that were certified by the EACC on clude both the completed Schedule EDIP and Employer Wellness Credit
or after January 1, 2010. See TIRs 16-15 and 10- Schedule CMS with the return. The Employer Wellness Credit (EWC) program
01 for further information. expired on December 31, 2017 and no new EWC
To claim the EOAC, complete Schedule EOAC and amounts are being awarded. However, remaining
enter the amount of EOAC using credit code credits awarded for the 2015 through 2017 tax
EOACCR on the Schedule CMS. Include both the

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years and carried over by a taxpayer may be ap- To claim the FIC, enter the FIC certificate number To claim the HRTC, enter the HRTC certificate
plied in the 2020 tax year. and the amount of FIC using credit code FLMCRD number and the amount of HRTC using credit
Effective for tax years beginning on or after Janu- on Schedule CMS. Supporting documentation code HISRHB on Schedule CMS. Supporting doc-
ary 1, 2013, a taxpayer subject to tax under MGL must be available to DOR upon request. Certifi- umentation must be enclosed with the return or
ch 63 that employed 200 or fewer workers was cate application forms and additional information the HRTC may be disallowed. For further infor-
eligible for the EWC for up to 25% of its costs as- are available at mass.gov/dor. mation on documentation see the Transfer/Sale
HRC: Historic Rehabilitation Credit Certificate
sociated with implementing a “certified wellness Harbor Maintenance Tax Credit Form and Allotment Schedule HRC: Historic Re-
program” for its employees. Prior to the EWC Business corporations subject to tax under MGL habilitation Credit Summary Form.
program’s expiration on December 31, 2017, a ch 63 that have paid certain federal harbor main-
taxpayer could claim the EWC by applying to the tenance taxes under IRC § 4461 may be eligible Investment Credit
Department of Public Health (DPH) to certify its to claim the Harbor Maintenance Tax Credit Taxpayers subject to tax under MGL ch 63, § 39
wellness program. The amount of the credit (HMTC). A corporation is eligible for the HMTC may be eligible to claim the Investment Tax Credit
available to be claimed could not exceed $10,000 only for federal harbor maintenance taxes paid (ITC). To claim the ITC, a corporation must qualify
in any tax year and the credit was not refundable. that are attributable to the shipment of break-bulk as a manufacturing or research development cor-
A taxpayer may carry forward any unused portion or containerized cargo by sea and ocean-going poration under MGL ch 63, § 42B, or be princi-
of the EWC for up to 5 taxable years. For tax- vessels through a Massachusetts harbor facility. pally engaged in agriculture or commercial
payers subject to a minimum excise under MGL The HMTC is neither refundable nor transferrable. fishing. Such corporations may earn a credit
ch 63, the EWC may not reduce the excise due The HMTC may not reduce the corporate excise equal to 3% of the cost of “qualifying tangible
below the minimum amount. due below the minimum amount but is not sub- property” acquired, constructed, reconstructed,
Since the EWC program expired on December 31, ject to the 50% limitation imposed by MGL ch 63, or erected during the taxable year. “Qualifying
2017, a taxpayer may only claim a previously § 32C. Any unused portion of the HMTC may be tangible property” includes tangible property,
awarded EWC that was carried over to subse- carried forward for the next 5 tax years. See TIR buildings, and structural components acquired by
quent tax years. Information about the criteria 97-4 and Schedule HM instructions for further in- purchase (as defined in IRC § 179(d)) that is used
DPH utilized for authorizing and certifying the formation. and located in Massachusetts on the last day of
EWC may be found in DPH’s “Massachusetts To claim the HMTC, complete Schedule HM and the taxable year, and is depreciable under IRC §
Wellness Tax Credit Incentive” regulation, 105 enter the amount of HMTC using credit code 167 with a useful life of four years or more. Any
CMR 216.000. HRBMNT on Schedule CMS. Include both the unused portion of the credit may be carried for-
To claim the EWC, enter the amount of EWC completed Schedule HM and Schedule CMS with ward for 3 tax years after the credit was earned,
using credit code EMPWLL on Schedule CMS. the return. while credits not used because of the 50% limita-
tion may be carried over indefinitely. The ITC may
Also, enter the DPH issued certificate number on
Historical Rehabilitation Credit be recaptured if the eligible property for which the
Schedule CMS.
Taxpayers subject to tax under MGL ch 63 that ITC is claimed is disposed of or ceases to be in
Film Incentive Credit have made qualified expenditures in the rehabili- qualified use prior to the end of its useful life (as
Motion picture production companies subject to tation of a qualified historic structure may be eli- determined by the property’s depreciation period
tax under MGL ch 63 may be eligible to claim the gible to claim a Historic Rehabilitation Tax Credit for federal tax purposes). The ITC is neither re-
Film Incentive Credit (FIC) for certain payroll and (HRTC). The HRTC may be claimed for up to 20% fundable nor transferrable. The ITC may not re-
production expenses. Production companies that of the taxpayer’s rehabilitation expenditures made duce the corporate excise due below the
incur at least $50,000 of production costs in in substantially rehabilitating a historic structure minimum amount, nor may the amount of the
Massachusetts are eligible for a credit equal to that has received final certification from the credit exceed 50% of the taxpayer’s liability.
25% of the total Massachusetts payroll for the Massachusetts Historical Commission and placed To claim the ITC, complete Schedule H and enter
production, excluding salaries of $1 million and into service (where occupancy of the entire struc- the amount of ITC using credit code INVTAX on
higher. In addition, production companies whose ture or some identifiable portion of it is permit- Schedule CMS. Include both the completed
Massachusetts production expenses exceed 50% ted). Unused portions of HRTC may be carried Schedule H and Schedule CMS with the return.
of the total production cost may receive a credit forward for the following 5 tax years. The HRTC
equal to 25% of the total Massachusetts produc- may be transferred or sold to another taxpayer Life Sciences Refundable FDA User Fees
tion expense. The FIC may be applied to reduce a but is not refundable. HRTC awards also may be Tax Credit
taxpayer's liability (including the minimum ex- transferred to other qualifying taxpayers that ac- Certified life sciences companies subject to tax
cise), reduced by any other available credits, after quire a historic structure, as long as certain crite- under MGL ch 63, to the extent authorized by the
which 90% of any remaining credits may be re- ria are met. Any HRTC claimed by the taxpayer Life Sciences Tax Incentive Program, may be eli-
funded to the taxpayer. Subject to certain condi- may be subject to recapture if the taxpayer dis- gible to claim a Life Sciences Refundable FDA
tions, unused FIC may be carried over, refunded, poses of its interest in the structure within 5 years User Fees Tax Credit. The credit is equal to 100%
or transferred by the taxpayer for the following 5 of its placement into service. HRTC awards how- of the user fees paid on or after June 16, 2008, to
tax years. FIC transferees may carry forward un- ever are not subject to recapture. For taxpayers the US Food and Drug Administration (FDA) upon
used FIC for the 5 tax years subsequent to the subject to the corporate excise, the HRTC is not submission of an application to manufacture a
first tax year the FIC was allowed to the initial FIC subject to the 50% limitation under MGL ch 63, § human drug in Massachusetts. The credit may be
transferor. The FIC is not refundable to the trans- 32C but may not reduce the excise below the claimed in the tax year in which the application
feree. See TIR 07-15 for further information. minimum amount. For further information, see for licensure of an establishment to manufacture
830 CMR 63.38R.1 and TIRs 16-15 and 10-11. the drug is approved by the FDA. To be eligible
for the credit, more than 50% of the research and

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development costs for the drug must have been (LSRITC) equal to 10% of the cost of qualifying housing projects will qualify for the LIHTC, which
incurred in Massachusetts. Certified life sciences property acquired, constructed, reconstructed, or properties may generate an LIHTC for investors,
companies may use the FDA user fees credit to erected and used exclusively in Massachusetts. If and ultimately allocates the amount of credit a
reduce their tax to zero. At the option of the tax- the LSRITC exceeds the tax due, 90% of the bal- taxpayer may claim based on a total pool of
payer and to the extent authorized pursuant to the ance of the LSRITC may, at the option of the tax- $20,000,000. The LIHTC may be claimed in the
Life Sciences Tax Incentive Program, where the payer and to the extent authorized pursuant to the year that a “qualified Massachusetts project” is
credit exceeds the tax due, 90% of the balance of Life Sciences Tax Incentive Program, be refund- placed in service and for each of the four subse-
the excess credit is refundable. A life sciences able to the taxpayer for the tax year in which the quent taxable years. The properties must also
company claiming the credit may not also deduct qualified property giving rise to the LSRITC is meet the requirements established by Massachu-
FDA user fees for which the credit is claimed on placed in service. If the taxpayer does not opt to setts and federal laws, and be owned by a tax-
its return. In the event a company’s certification make the LSRITC refundable, then the LSRITC payer who enters into a regulatory agreement
as a life sciences company is revoked, the recap- may be carried forward for up to 10 years. Certi- with DHCD.
ture of credit may be required. The credit is not fied life sciences companies qualifying for the Any unused LIHTC may be carried forward for the
transferrable. For further information, see TIRs Economic Development Incentive Program Credit next 5 tax years. Alternatively, unused credits may
13-6 and 08-23. (EDIPC) may only take the EDIPC to the extent of be transferred. If an event or circumstance occurs
To claim the credit, complete a Schedule RLSC an additional 2% of the cost of the qualifying that results, or would have resulted, in the recap-
and enter the amount of the credit using credit property. In the event a company’s certification as ture of any portion of a federal Low Income Hous-
code LFSFDA on the Schedule CMS. a life sciences company is revoked, the recapture ing Credit, then the Massachusetts LIHTC may
of the LSRITC may be required. The LSRITC is also be subject to recapture. The LIHTC is not re-
Life Sciences Refundable Investment Tax not transferrable. For certified life sciences com- fundable.
Credit panies subject to a minimum excise, the LSRITC
Certified life sciences companies subject to tax cannot reduce the amount of the excise due to For taxpayers subject to a minimum excise under
under MGL ch 63, to the extent authorized by the less than the minimum amount. For further infor- MGL ch 63, the LIHTC may not reduce the excise
Life Sciences Tax Incentive Program, may claim mation, see TIRs 13-6 and 08-23. due below the minimum amount.
a Life Sciences Refundable Investment Tax Credit To claim the LIHTC, enter the LIHTC certificate
(LSRITC) equal to 10% of the cost of qualifying Life Sciences Research Tax Credit
number and the amount of LIHTC using credit
property acquired, constructed, reconstructed, or Certified life sciences companies subject to tax
code LOWINC on Schedule CMS. Supporting
erected and used exclusively in Massachusetts. If under MGL ch 63, to the extent authorized by the
documentation must be enclosed with the return
the LSRITC exceeds the tax due, 90% of the bal- Life Sciences Tax Incentive Program, may claim
or the LIHTC may be disallowed. For further in-
ance of the LSRITC may, at the option of the tax- a Life Sciences Research Tax Credit (LSRTC) for
formation on documentation see the Transfer
payer and to the extent authorized pursuant to the certain expenditures that do not qualify for the
LIHC: Low-Income Housing Credit Statement
Life Sciences Tax Incentive Program, be refund- MGL ch 63, § 38M Research Tax Credit (RC). The
Form and Allotment Schedule LIHC: Low-Income
able to the taxpayer for the tax year in which the LSRTC generally is calculated in the same man-
Housing Credit Summary Form. For further infor-
qualified property giving rise to the LSRITC is ner as the RC, but may also include expenditures
mation regarding this credit, contact DHCD, Divi-
placed in service. If the taxpayer elects to make for research related to legally mandated clinical
sion of Private Housing, at (617) 727-7824.
the LSRITC refundable, then the carryover provi- trial activities performed both inside and outside
sions for this credit that would otherwise apply of Massachusetts. Unlike the RC, the LSRTC is Low Income Housing Donation Tax Credit
shall not be available. Certified life sciences com- not refundable for certified life sciences compa- Taxpayers subject to tax under MGL ch 63 that
panies qualifying for the Economic Development nies. See the Research Credit summary below. make a “qualified donation” of real or personal
Incentive Program Credit (EDIPC) may only take The LSRTC is not transferrable. However, unused property to certain non-profit entities for use in
the EDIPC to the extent of an additional 2% of the portions of the LSRTC may be carried forward for purchasing, constructing or rehabilitating a “qual-
cost of the qualifying property. In the event a 15 years. In the event of the revocation of a com- ified Massachusetts project” may be eligible to
company’s certification as a life sciences com- pany’s certification as a life sciences company or claim a Low Income Housing Donation Tax Credit
pany is revoked, the recapture of the LSRITC may other disqualifying events, the LSRTC may be (LIHDTC). This credit operates in a similar man-
be required. The LSRITC is not transferrable. For subject to recapture. For certified life sciences ner to the Low Income Housing Tax Credit
certified life sciences companies subject to a min- companies subject to a minimum excise, the (LIHTC), but the LIHDTC is limited to 50% of the
imum excise, the LSRITC cannot reduce the LSRTC cannot reduce the amount of the excise amount of the “qualified donation,” which may be
amount of the excise due to less than the mini- due to less than the minimum amount. For fur- increased to 65% by the Department of Housing
mum amount. For further information, see TIRs ther information, see TIRs 13-6 and 08-23. and Community Development (DHCD). In addi-
13-6 and 08-23. To claim the LSRTC, complete a Schedule RLSC tion, the LIHDTC may only be claimed in the year
To claim the LSRITC, complete a Schedule RLSC and enter the amount of LSRTC using credit code that the “qualified donation” is made. However,
and enter the amount of LSRITC using credit LFSRDC on Schedule CMS. any unused LIHDTC may be carried forward for
the next 5 years. DHCD determines eligibility and
code LFSITC on Schedule CMS. Low Income Housing Tax Credit ultimately allocates the LIHDTC a taxpayer may
Life Sciences Refundable Jobs Tax Credit Taxpayers subject to tax under MGL ch 63 who claim based on a total pool of $20,000,000
Certified life sciences companies subject to tax invest in a qualified low-income housing project shared with the LIHTC. Only one-fifth of awarded
under MGL ch 63, to the extent authorized by the located in Massachusetts may be eligible for the LIHDTC will count towards this pool. The LIHDTC
Life Sciences Tax Incentive Program, may claim Low Income Housing Tax Credit (LIHTC). The De- is not refundable but is transferrable in the same
a Life Sciences Refundable Investment Tax Credit partment of Housing and Community Develop- manner as the LIHTC.
ment (DHCD) determines which low-income

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The property must also meet the requirements but only if the services were performed for re- POL on Schedule CMS. Include both the com-
established by Massachusetts and federal laws search purposes or the supplies were used to pleted Schedule VP and Schedule CMS with the
and be owned by an owner who enters into a reg- conduct research in Massachusetts. The RC return.
ulatory agreement with DHCD. If an event or cir- amount is limited to the first $25,000 of excise
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
To claim the LIHDTC, enter the LIHDTC certificate while credits not used because of the 75% rule the Commissioner of Veteran’s Services; and
number and the amount of LIHDTC using credit may be carried over indefinitely. The deduction al- qualify for and claim the federal Work Opportunity
code LIHDON on Schedule CMS. Supporting doc- lowed to a corporation for any research expenses Credit allowed under IRC § 51. A business may
umentation must be enclosed with the return or generating an RC must be reduced by the amount be eligible for a second VHTC for the next taxable
the LIHDTC may be disallowed. For further infor- of RC generated. This amount is added back to year if the veteran continues to work for the busi-
mation on documentation see the Transfer LIHC: income on Schedule E, line 13. ness. In order to claim the VHTC, the primary
place of employment and the primary residence
Low-Income Housing Credit Statement Form and Certified life sciences companies that have an RC of the qualified veteran must be in Massachu-
Allotment Schedule LIHC: Low-Income Housing that exceeds the amount of the credit that may be setts, and the business corporation must obtain
Credit Summary Form. For further information re- claimed under MGL ch 63, § 38M for a taxable certification that the veteran is a qualified veteran,
garding this credit, contact DHCD, Division of Pri- year may, to the extent authorized under the Life as defined in IRC § 51(d)(3), from the Depart-
vate Housing, at (617) 727-7824. Sciences Tax Incentive Program, elect to make ment of Career Services, no later than the em-
90% of the balance of the remaining credits re- ployee’s first day of work.
Medical Device Tax Credit fundable. See TIR 08-23, section 5.
Medical Device Companies taxable under MGL ch The VHTC is neither refundable nor transferrable.
63 may be eligible to claim a Medical Device Tax To claim the RC, complete Schedule RC and enter Any amount of VHTC that exceeds the tax due in
Credit (MDTC). The MDTC is equal to 100% of the amount of RC using credit code REARCH on the current taxable year may be carried forward
the user fees actually paid by the medical device Schedule CMS. Include both the completed to any of the 3 subsequent taxable years. The
company to the United States Food and Drug Ad- Schedule RC and Schedule CMS with the return. VHTC is available for qualified veterans hired after
ministration (FDA). To qualify for the MDTC, the Vanpool Credit July 1, 2017. A business subject to a minimum
user fees must be paid during the tax year for Business corporations subject to tax under MGL excise under MGL ch 63 cannot use the credit to
which the tax is due for pre-market submissions ch 63 may be eligible for a Vanpool Credit (VPC) reduce its tax due to below the minimum amount.
(e.g., applications, supplements, or 510(k) sub- equal to 30% of the cost incurred during the tax- See TIR 17-10 for further information.
missions) to market new technologies developed able year for the purchase or lease of company To claim the VHTC, enter the VHTC certificate
or manufactured in Massachusetts. The MDTC shuttle vans used by the corporation in an em- number and the amount of VHTC using credit
may not be carried forward to subsequent tax ployer-sponsored ride sharing program in Mass- code VETHIR on Schedule CMS.
years. The MDTC is not refundable. However, un- achusetts. The company shuttle vans must be
used portions of the MDTC may be transferred to situated in Massachusetts on the last day of the Schedule U-CS
a purchasing company, who may carry over the corporation's taxable year and used to bring em- A taxable member of a combined group which
MDTC but must use it within 5 years of the is- ployees from their homes to their jobs or stu- has available credits which it cannot use may
suance of the certificate. The purchasing com- dents from a public transportation facility to a share credits generated by the unitary business
pany may not transfer the MDTC. The MDTC may school campus in Massachusetts. The amount of with other members of the combined group pro-
not reduce the purchasing company’s corporate VPC will be prorated for property disposed of or vided such other members (a) are eligible to take
excise due below the minimum excise. no longer having a qualified use prior to the end the credit and (b) filed a combined report under
To claim the MDTC, enter the MDTC certificate of the tax year. Additionally, the VPC will be re- 830 CMR 63.32B.2 with the corporation that has
number and the amount of MDTC using credit captured if the property on which the VPC has the credit for the year to which the credit relates
code MEDDVC on Schedule CMS. Certificate ap- been taken is disposed of or the property ceases (note that this precludes corporations sharing
plication forms and additional information are to be in qualified use prior to the end of its useful credits from years beginning before January 1,
available at mass.gov/dor. life. No recapture is necessary if the property has 2009, but corporations may also continue to
been in qualified use for more than 4 consecutive share certain credits that were eligible to be
Research Credit years. The VPC is neither refundable nor trans- shared under prior law (see 830 CMR 63.32B.2
Business corporations subject to an excise under ferrable. For corporations subject to the corporate (9)(c)(2)). The total amount of such shared cred-
MGL ch 63 that incur “qualified research ex- excise, the VPC may not reduce the corporate ex- its is reported on Schedule U-ST.
penses” and “basic research payments” may be cise due below the minimum amount, nor may Schedule U-IC
able to claim a Research Tax Credit (RC). The RC the amount of VPC allowable in any one tax year Summarizes the credits taken (including shared
closely parallels the federal research credit. Gen- exceed 50% of the corporation’s corporate excise credits) by type of credit for purposes of applying
erally, “qualified research expenses” include liability. the various limitations on the amount of each
wages paid to employees, a portion of wages paid
to contractors, and amounts paid for supplies, To claim the VPC, complete Schedule VP and credit that may be taken.
enter the amount of VPC using credit code VAN-

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                                                                           13

Schedule CG                                            payer. The separate non-income measure return,       Unless the S corporation has a different taxable
The payments made by group members are re-             if required, must include Schedules A, B, and        year than the taxable year for the combined report
ported here. This schedule reconciles all payments     Schedule C, D or RNW along with any supporting       (and Form 355S is therefore also being filed to de-
made by all members of the group towards the           schedules required for some entries as referenced    termine and pay the non-income measure of ex-
excise shown on the combined report.                   on Schedule A. A corporation that would be eligi-    cise), the taxpayer should not complete Schedules
                                                       ble to apportion its income based on its own sep-    A, B, C, D, E and RNW with Form 355S. In these
Schedule TDS                                           arate activities (i.e., the corporation would be     cases, no excise is due with Form 355S. Schedule
Taxpayers whose Massachusetts returns take po-         taxable on its income in another state under         F may be required on the part of an S corporation
sitions inconsistent with the positions taken in an-   Massachusetts law without regard to the activities   if the income of the corporation is subject to ap-
other state where the governing law is the same        of the other combined group members) must            portionment and there are non-resident share-
in all material respects are required to disclose      also complete Schedule F as if it were not subject   holders. Note that financial institutions that are S
those positions. Taxpayers who fail to disclose        to combined reporting in order to determine its      corporations, although not subject to a non-in-
such a position are subject to a penalty of 100%       non-income measure.                                  come measure of excise, must file Form 63-FI for
of any understatement of tax due to the inconsis-                                                           the purpose of calculating distributive income and
tent position and such penalty is in addition to any   Where a corporation that is subject to combined
other penalty that may be due.                         reporting files a separate return to report its non- also must submit Schedules S and SK-1.
                                                       income measure, it is not to report any income
In addition, taxpayers who underpay their tax lia-     on that form. Schedule E is not required with the
bility due to (a) either negligence or disregard of    separate return unless the taxpayer has income       Line by Line
the tax laws of the commonwealth or (b) where          from a source other than a unitary business that
there is a substantial understatement (the greater     is to be reported on a separate company basis. In    Instructions
of 10% of the tax required to be shown on the re-      the latter such cases, the corporation is to report  Line 1
turn or $1,000) are liable for a penalty of 20% of     on Form 355 or 355S, Schedule E only the in-         Check one box only. A financial group is a com-
the amount of the underpayment. For purposes           come that is not included in the combined report     bined group all of whose members, including
of determining the amount of the penalty, the          and is to allocate or apportion such income with-    members not taxable on their income in Mass-
amount of the deficiency subject to the substan-       out regard to the combined reporting provisions.     achusetts, are entities that are financial institu-
tial understatement provision will be reduced by
any portion of the understatement attributable to      A member required to file a separate return to re-   tions within the meaning of MGL ch 63, § 1. A
a position supported by substantial authority or if    port its non-income measure may claim one or         non-financial group is a combined group none of
the relevant facts are adequately disclosed in the     more credits against its excise as reported on that  whose members, including non-taxable mem-
return and there is a reasonable basis for the re-     return, entering the credits claimed on Schedule     bers, are financial institutions. A mixed group is
turn position.                                         CMS of Form 355, 63-FI or 355S. In the case of       any combined group that includes at least one
                                                       such members, the supporting schedules for           member that is a financial institution and at least
Enclosing Schedule TDS with the return under-          credits calculated on an aggregated basis (e.g.,     one member that is not a financial institution.
stating the tax liability is one of the methods avail- the research credit that can be claimed under
able to a taxpayer to make disclosure of such          MGL ch 63, § 38M) are to be determined based         Line 2
positions taken on the return. See TIR 06-05 for       on the combined group’s tax year and the sched-      Check one box only. If the combined group is
more information on applicable penalties and dis-      ules claiming these credits are to be submitted      making no affirmative election, and has not previ-
closure requirements.                                  with Form 355U (i.e., duplicates of these sched-     ously made an election that is still binding (i.e.,
                                                       ules should not be enclosed to the separate non-     the default method of filing) and chooses “nei-
Special Situations                                       income measure return).                            ther,” the combined group that is under common
                                                                                                            control and engaged in a unitary business will be
Non-income measure                                     Note: Financial institutions with a different tax    determined on a “water’s edge” basis (i.e., with
Form 355U is used by the combined group to cal-
                                                       year than the combined group, although not sub-
culate and pay the income excise due from the                                                               only certain non-U.S. corporations included in the
                                                       ject to a non-income measure of excise, must file
taxable members of a combined group. Members                                                                combined group). See 830 CMR 63.32B.2 (5).
                                                       a pro forma Form 63-FI for the purpose of calcu-
of the group also pay their non-income measure                                                              Note: Once made, a combined group affirmative
                                                       lating distributive income based on its own tax-
of excise with the Form 355U if their taxable year                                                          election is binding for ten years and thereafter
                                                       able year. It also must submit Schedules S and
ends at the same time as the year used for the                                                              must be renewed by the taxpayer or the election
                                                       SK-1 at that time.
combined report. If the taxable member has the                                                              expires. See Combined Group Elections – Re-
same tax year as the combined group, it should         S corporations                                       newal after Expiration of 10-year Election Pe-
not file a separate Form 355.                          A Massachusetts S corporation that is included       riod above for more information.
Fiscalization                                          in a Form 355U must continue to file Form 355S       Affiliated Group Election
For purposes of paying its non-income measure,         (including Schedules S and SK-1), but that return    If the combined group is entitled to make an affil-
a taxable member of the combined group with a          will be informational only. An S corporation must    iated group election and affirmatively makes this
fiscal year ending at a different time (i.e., a mem-   determine the distributive income for all of its     election, the combined group is determined on a
ber subject to “Fiscalization” as described in 830     shareholders (and, also, for non-resident share-     water’s edge basis but is expanded to include af-
CMR 63.32B.2(12)(c)) must still file a separate        holders, the apportionment of the shareholders’      filiated corporations that constitute the “Mass-
return (Form 355 or Form 355S as appropriate)          distributive share income) without regard to the     achusetts affiliated group,” as defined in 830
to report its non-income measure based on its          combined reporting provisions.                       CMR 63.32B.2(2) and (10). The composition of
own taxable year as determined as a separate tax-                                                           the combined group as a “Massachusetts affili-

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                                                                     14

ated group” is not dependent upon whether the          Where a combined group makes either an affili-        In general, each taxable member of a combined
group is engaged in a unitary business but can         ated group or a worldwide election, the principal     group is to determine its apportionment formula
have the effect of converting income that is oth-      reporting corporation and all members of the          on Schedule U-MSI. If any member of the com-
erwise allocable income into apportionable in-         group consent to the production of documents or       bined group is seeking alternative apportionment,
come as well as other specific significant tax         other information that the Commissioner reason-       it must nonetheless complete Schedule U-MSI by
consequences. A combined group is not entitled         ably requires, e.g., information required to verify   applying the statutory rules that ap ply to such
to make an affiliated group election unless the        that the appropriate members of the combined          taxpayer, and not by applying the taxpayer’s pro-
composition of such combined group includes a          group are included, that the requirements of the      posed alternative apportionment approach. If the
federal affiliated group filing a consolidated return  election have been met, that the tax computation      taxpayer’s proposed alternate method is later ac-
for federal income tax purposes, even though the       and tax reporting are proper, etc. In the case of     cepted, a refund of any overpayment will be
“Massachusetts affiliated group” that is subject to    the worldwide election, the documents shall be        made.
the election is not necessarily co-extensive with      provided in language and form acceptable to the
such a federal affiliated group. For example, the      Commissioner.                                         Line 5
Massachusetts affiliated group can include (1) S                                                             If this is an amended filing (including, for pur-
corporations, certain insurance companies,             Line 3                                                poses of this question, a filing that is to super-
REITs, RICs and non-U.S. corporations; (2) cor-        Check “Yes” if either the affiliated group election   sede a prior filing when both filings are made on
porations that are under indirect or direct com-       or the worldwide election is indicated on line 2      or before the due date for the return), check
mon ownership of greater than 50% (instead of          and this is the first year the election is in effect. “Yes.” Amended returns must be submitted elec-
the 80% vote-and-value standard used for pur-          If the combined group is making the affiliated        tronically unless the requirements of DD 13-6
poses of filing a federal consolidated income tax      group election or a worldwide election, the prin-     apply.
return); and (3) the members of two or more af-        cipal reporting corporation must at the time of the   Amended Return
filiated groups where each group files a consoli-      election prepare for itself and collect on behalf of  If you need to change a line item on your return,
dated return for federal income tax purposes. A        each group member a letter of consent, to be          complete a new return with the corrected infor-
combined group is not entitled to make an affili-      made available to the Commissioner upon re-           mation and fill in the Amended return oval. Gen-
ated group election if it is making or is subject to   quest, stating that the group member has agreed       erally, an amended return must be filed within
a previously made worldwide election. See 830          to the election and, also, further agrees (1) that    three years of the date that your original return
CMR 63.32B.2(10) for the rules that apply in the       such election applies to any member that subse-       was filed.
context of a Massachusetts affiliated group elec-      quently enters the group and (2) that each mem-
tion.                                                  ber continues to be bound by the election in the      Federal Change
                                                       event that such member is subsequently the sub-       If this is an amended Massachusetts return and it
Worldwide Group Election                               ject of a reverse acquisition as described in U.S.    does not report changes that result from the filing
If the combined group is entitled to make the          Treas. Reg. §. 1.1502-75(d) (3). After making the     of a federal amended return or from a federal
worldwide election and affirmatively makes this        election, the principal reporting corporation shall   audit (for example, if the amended Massachusetts
election, the combined group that is under com-        collect an identical consent from any member          return is reporting only a change in the apportion-
mon control and engaged in a unitary business          that subsequently enters the group during the pe-     ment calculation or an additional tax credit), fill in
will be determined on a worldwide basis (i.e., with    riod in which the election is in effect.              only the  Amended return oval. If this is an
no limitations on the non-U.S. corporations in-                                                              amended return that includes changes you have
cluded in the combined group). When a com-             Line 4                                                reported on an amended federal return filed with
bined group makes a worldwide election the             If any member of the group is requesting alterna-     the IRS for the same tax year, fill in the Amended
income of the non-U.S. corporations that are in-       tive apportionment under MGL ch 63, § 42, check       return and Federal amendment ovals. If the
cluded in the combined group are determined on         "Yes" and, under separate cover, submit Form AA-      amended Massachusetts return incorporates
a worldwide basis, and other specific rules apply.     1, with a statement of reasons that (1) demon-        changes that are the result of an IRS audit, check
A combined group cannot make a worldwide               strates by clear and cogent evidence that the         both the  Amended return and Federal audit
election if it is making or is subject to a previously statutory apportionment formula under MGL ch          ovals; enclose a complete copy of the federal
made affiliated group election. See 830 CMR            63, § 38 does not fairly represent the extent of its  audit report and supporting schedules.
63.32B.2(5),(6)(c)2.b for the rules that apply in      business activity in Massachusetts; and (2) con-
the context of a worldwide election.                   tains a detailed description of the corporation’s     Consent to Extend the Time to Act on an
                                                       proposed alternative apportionment method.            Amended Return treated as Abatement
Effect of Election                                     Failing to attach the required statement to the       Application
Both the affiliated group election and the world-      Form AA-1 that meets this criteria may result in      In certain instances, an amended return showing
wide election can only be made on this Form            the denial of the corporation’s request for alter-    a reduction of tax may be treated by DOR as an
355U, when timely filed, by the combined group’s       native apportionment.  The corporation’s applica-     abatement application. Under such circum-
principal reporting corporation. Both elections are    tion for alternative apportionment must include a     stances, by filing an amended return, you are giv-
irrevocable and binding on all members of the          computation of tax using the statutory apportion-     ing your consent for the Commissioner of
combined group, including the non-taxable mem-         ment formula and a second computation of tax          Revenue to act upon the abatement application
bers and any corporations that subsequently            using the corporation’s proposed alternative ap-      after six months from the date of filing. See TIR
enter the combined group, for the taxable year in      portionment method. For further information on        16-11. You may withdraw such consent at any
which the election is made and the next nine tax-      alternative apportionment, see MGL ch 63, § 42        time by contacting the DOR in writing. If consent
able years. See 63.32B.2(5)(c), (10)(d)(f).            and 830 CMR 63.42.1.                                  is withdrawn, any requested reduction in tax will
                                                                                                             be deemed denied either at the expiration of six

- 15 -

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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                                                                           16

Line 22                                             return, this includes but is not limited to a pay-
Reserved. Do not make an entry in this line.        ment made with a previous return. If this is an
                                                    amended return and a refund was previously is-
Line 23                                             sued in connection with a prior return or an over-
Enter the total income excise, before credits, due  payment was applied to estimated taxes for a
from members that are taxed as business corpo-      subsequent year in lieu of a refund on such prior
rations (including members classified as manufac-   return, enter the amount as a negative number.
turing corporations and research and development
corporations) under MGL ch 63, § 39 or as S Cor-    Line 41
porations under MGL ch 63, § 32D.                   M-2220 penalty. An additional charge may be im-
                                                    posed on corporations which underpay their esti-
This total must match the total reported on line
                                                    mated taxes or fail to pay estimated taxes. Form
37 of all Schedules U-ST filed for members clas-
                                                    M-2220, Underpayment of Massachusetts Esti-
sified as business corporations.
                                                    mated Tax by Corporations, should be used to
Line 25                                             compute any underpayment penalty.
Enter the total of individual members’ credits      Other penalties. Enter any other penalty due sep-
used to reduce the income excise of the member      arately from the M-2220 penalty. Common penal-
that generated the credit. This total must match    ties that may apply include (a) penalties for failure
the total reported on line 38 of all Schedules U-ST to file a tax return by the due date and failure to
filed for all members.                              pay the tax shown on the return by the due date
Line 26                                             (each penalty is 1% of the tax due per month up
Enter the total of individual members’ credits      to a maximum of 25%) and (b) The penalty for
used to reduce the income excise of any member      failure to file an amended return and pay the ad-
other than the member that generated the credit.    ditional tax due within 90 days of a federal change
This total must match the total reported on line    (including settlements) is 10% of the additional
39 of all Schedules U-ST filed for all members.     tax.
Line 27                                             Line 42
Subtract the amounts on line 25 and line 26 from    Any taxpayer that fails to pay its tax when due will
the total on line 24. This total must match the     be subject to interest charges on the unpaid bal-
total reported on line 41 of all Schedules U-ST     ance. The interest rate is redetermined on a quar-
filed for all members. This should also match the   terly basis and Massachusetts announces the rate
total of column g amounts on Schedule U-TM.         applicable by issuing a Technical Information Re-
                                                    lease for each quarter.
Line 30
Enter the total of all members’ 2019 overpay-
ments applied to 2020 estimated taxes as shown
on Schedule CG, Part 1, line 2.
Line 31
Enter the total of all members’ estimated tax pay-
ments for all install ments as shown on Schedule
CG, Part 1, lines 3 through 6.
Line 32
Enter the total of all members’ payments made
with extension as shown on Schedule CG, Part 1,
line 7.
Line 33
Enter the total of the pass-through entity with-
holding shown on Schedule U-ST, line 42 for all
members.
Line 34
Enter the total of the refundable credits shown on
Schedule U-ST, line 43 for all members.
Line 35
Enter the total amount of any tax payment(s) made
with respect to the excise due from the combined
group not included above. If this is an amended

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