The application window for the Massachusetts Life Sciences Center Tax Incentive Program is now open.
This program offers lucrative tax savings to eligible companies and the current application requirements include several modifications from past years, reducing barriers on several aspects of the application criteria. Applicants that previously didn’t qualify should reexamine to see if they can now qualify for the program. Companies that apply and are accepted into this program can benefit from various tax benefits, such as:
- PaLife Sciences Investment Tax Credit (90% refundable) (pursuant to M.G.L c. 62, §6(m) and c. 63, §38U)
- Extension of Net operating Losses (NOLs) from 5 to 15 years (pursuant to M.G.L. c. 63, §30(17))
- Designation as R&D Corporation for Sales Tax Purposes (pursuant to M.G.L. c. 63, §42B)
- Sales Tax Exemption for Certain Property (pursuant to M.G.L. c. 64H, §6(xx))
- FDA User Fees Credit (90% refundable) (pursuant to M.G.L. c. 62, §6(n) and c. 63, §31M)
- And several other tax benefits
Applicants should meet the following criteria:
- Companies must be registered to do business in Massachusetts and be in good standing
- Companies must be filing a Massachusetts tax return for 2024
- Companies must employ at least 10 permanent FTEs (35 hours/week) as of December 31, 2024
- Companies must commit to one of the following hiring goals:
- Companies that meet one of the following criteria, must add at least 5 net new jobs in 2025 and be able to retain those jobs through 2027:
- Company employed less than 50 permanent hires in Massachusetts as of December 31, 2024
- Company is based in a Gateway Municipality
- Company is based in Barnstable, Berkshire, Bristol, Dukes, Franklin, Hampden, Hampshire, Nantucket, Plymouth, or Worcester County
- All other companies must commit to hiring at least 10 net new jobs in calendar year 2025 and be able to retain those jobs through 2027
- Companies that meet one of the following criteria, must add at least 5 net new jobs in 2025 and be able to retain those jobs through 2027:
Online applications and additional information can be found on the Massachusetts Life Sciences Center website.
Applications are due at 5pm EST on February 19, 2025, so interested companies should act fast. Award notifications will be sent by early May 2025.
Author: Robert Traester, CPA, MST | [email protected]
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For more information on this topic, please contact a member of Withum’s Life Sciences Services Team.
