Massachusetts · Investment · MA-ITC-001
Investment Tax Credit
Publication revised September 24, 2026. Sourcebook page 144.
Credit amount / calculation
3% of qualifying tangible property; motor vehicles excluded; carryover rules apply.
Business fit and eligible activity
Massachusetts manufacturers can claim a broad statutory credit on qualifying tangible property used in manufacturing. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Illustrative business benefit
A sawmill invests $1.50 million in qualifying production machinery. At 3%, the nominal credit is $45,000 before annual caps, tax-liability limits, carryforward rules, or negotiated adjustments. The company should isolate eligible machinery from buildings, vehicles, land, and other costs that the statute does not treat the same way.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Get a written answer on which property is qualified - especially buildings, installation, software, used equipment, vehicles, and mobile machinery.
Official sources
Related programs
Economic Development Incentive Program Credit
Project-specific negotiated award based on jobs, investment and location.
Project-specific negotiated award based on jobs, investment and location.
Research Credit
Credit based on qualified Massachusetts research expenditures under the current statutory...
Credit based on qualified Massachusetts research expenditures under the current statutory method.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship...
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship compliance, plus possible statutory bonuses.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory...
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory conditions are satisfied.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method or the alternative simplified method. The latter generally...
Regular research-credit method or the alternative simplified method.