In a significant policy shift, the Massachusetts Life Sciences Center (MLSC) announced the end of its Angel Investor Tax Credit program, which was repealed by Chapter 238 of the Acts of 2024 on November 20, 2024, effective for the tax year beginning on or after January 1, 2024.
The Angel Investor Tax Credit program ran from 2020 through 2023 tax years to incentivize investors looking to fund early-stage companies in Massachusetts. The program was designed to broaden the employment opportunities in the life sciences sector, drive health-related innovations, and enhance the research, development, manufacturing, and commercialization in the field. It offered a 20% tax credit on qualifying investments and an increased 30% credit for businesses located in gateway municipalities.
Additional Tax Incentive Programs
While the program no longer accepts applications, the MLSC website states that it will “continue to run other programs that support early-stage companies and the entrepreneurs who lead those organizations.”
Additionally, the MLSC’s Tax Incentive Program remains a pivotal tool to foster growth for life science companies. This program provides substantial tax savings for eligible companies. The current application requirements have been updated from previous years, simplifying several aspects and lowering barriers. Companies that previously did not qualify should reassess their eligibility, as they may now meet the revised criteria.
Takeaways
While the elimination of the Angel Investor Tax Credit program closes one financing chapter for the Massachusetts life science field, continued investment through other MLSC initiatives should continue to further the expansion and development of the industry within the Massachusetts ecosystem.
Author: Ray Jabagjorian | [email protected]
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For more information on this topic, please contact a member of Withum’s Life Sciences Services Team.
