Massachusetts · research and development · MA-RD-001
Research Credit
Publication revised September 24, 2026. Sourcebook page 145.
Credit amount / calculation
Credit based on qualified Massachusetts research expenditures under the current statutory method.
Business fit and eligible activity
Qualified Massachusetts research can produce a corporate excise credit. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Identify the technical uncertainty and start contemporaneous project records before trying to calculate the credit.
Official sources
Related programs
Economic Development Incentive Program Credit
Project-specific negotiated award based on jobs
Qualifying expansions can negotiate a state investment tax credit through EDIP.
Investment Tax Credit
3% of qualifying tangible property
Massachusetts manufacturers can claim a broad statutory credit on qualifying tangible property used in manufacturing.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.
Rehabilitation Credit (Internal Revenue Code §47)
Generally
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify.