Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1935 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 41 FILED ON: 1/10/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1935
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Bruce E. Tarr
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to the creation of a super research and development tax credit.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Bruce E. TarrFirst Essex and Middlesex 1 of 2
16	16	SENATE DOCKET, NO. 41 FILED ON: 1/10/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1935
18	18	By Mr. Tarr, a petition (accompanied by bill, Senate, No. 1935) of Bruce E. Tarr for legislation
19	19	to create a super research and development tax credit. Revenue.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE SENATE, NO. 1770 OF 2019-2020.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act relative to the creation of a super research and development tax credit.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. SECTION__. Section 38 of Chapter 63 as appearing in the 2020 official
31	31	2edition is hereby amended by inserting at the end thereof the following new section:-
32	32	3 Super Research and Development Tax Credit
33	33	4 Section 1. A business corporation or taxpayer that qualifies for the research expense tax
34	34	5credit allowed under section 38M of this Chapter and 830 CMR 63.38M.1 is allowed an
35	35	6additional credit against the tax due under this section equal to the excess, if any, of qualified
36	36	7research expenses for the taxable year over the super credit base amount. For purposes of this
37	37	8section, "super credit base amount" means the average amount spent on qualified research
38	38	9expenses by the taxpayer in the 5 taxable years immediately preceding the effective date of this
39	39	10section, increased by 50%. For purposes of this section, "qualified research expenses" has the 2 of 2
40	40	11same meaning as under 830 CMR 63.38M.1 but applies only to expenditures for research
41	41	12conducted in this State.
42	42	13 Section 2. The credit allowed under this section is limited to 50% of the taxpayer's tax
43	43	14due after the allowance of any other credits taken pursuant to this chapter.
44	44	15 Section 3. A business corporation or taxpayer entitled to a credit under this section for
45	45	16any taxable year may carry over and apply to the tax due for any one or more of the next
46	46	17succeeding 5 taxable years the portion, as reduced from year to year, of any unused credit, but in
47	47	18no event may the credit applied in any single year exceed 50% of the taxpayer's tax due after the
48	48	19allowance of any other credits taken pursuant to this chapter.
49	49	20 Section 4. The credit provided by this section may not be used to reduce the business
50	50	21corporation or taxpayer's tax liability under this section to less than the amount of the taxpayer's
51	51	22tax due in the preceding taxable year after the allowance of any credits taken pursuant to this
52	52	23chapter.
53	53	24 Section 5. In the case of corporations filing a combined return, a credit generated by an
54	54	25individual member corporation under the provisions of this section must first be applied against
55	55	26the tax due attributable to that company under this Part. A member corporation with an excess
56	56	27research and development credit may apply its excess credit against the tax due of another group
57	57	28member to the extent that that other member corporation can use additional credits under the
58	58	29limitations of subsection 4. Unused, unexpired credits generated by a member corporation may
59	59	30be carried over from year to year by the individual corporation that generated the credit, subject
60	60	31to the limitation in subsection 3.