Massachusetts Statement Relating to Research and Development

Statement Relating to Research and Development
Form 355RD
CAUTION:
This tax return must
be filed electronically.
Paper versions of this return
will not be accepted.
If you have questions about filing electronically,
contact us at 617-887-6367.
See https://www.mass.gov/info-details/dor-e-filing-and-paymentrequirements for further information about our electronic filing and
payment requirements.

Massachusetts Department of Revenue

Form 355RD
Statement Relating to Research and Development
For calendar year 2023 or taxable year beginning 	

2023

2023 and ending

Name of corporation 			

	

Federal Identification number

	

Street address
City/Town 	

State 	

Zip	

Name of contact person 	

Phone number 	

Phone number
E-mail address

State corporation’s principal business activity in Massachusetts

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1	 Is the corporation presently engaged in research and development within Massachusetts?  ● Yes  ● No

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2	 If No, what date will such activity begin (mm/dd/yyyy)? .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2	

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3	 Total gross receipts derived from research and development performed in Massachusetts.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3	

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4	 Total gross receipts derived from all activities in Massachusetts .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4	

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5	 Total amount of Massachusetts expenditures allocable to research and development. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5	

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6	 Total amount of Massachusetts manufacturing expenditures.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6	

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7	 Total amount of Massachusetts administrative expenditures .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7	

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8	 Total amount of Massachusetts expenditures, excluding manufacturing or administrative expenditures .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8	

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Summary of research and development activities. Attach statements if necessary.

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9	 Summarize all activities (e.g., research and development, sales, manufacturing, etc.) in which the corporation is involved in Massachusetts

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10	 Describe in detail the actual research and development process or activities performed by your employees on your business premises in Massachusetts

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11	 Describe in detail the actual research and development process or activities performed by others on a contract, fee or other basis in Massachusetts

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12	 Describe in detail the number, type, condition and original cost of the tangible personal property located in Massachusetts________________________

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13	 List localities in which the corporation has property which qualifies for local property tax exemption___________________________________________

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Declaration

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I declare under the pains and penalties of perjury that to the best of my knowledge, the information contained herein is accurate and complete.

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Signature 			 Date

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Mail to  Massachusetts Department of Revenue, PO Box 7027, Boston, MA 02204.

Form 355RD Instructions
General Information

What If The Applicant Is an LLC?

If the applicant is a Limited Liability Company (LLC), a copy of the
applicant’s U.S. Form 8832, Entity Classification Election, must be
included with Form 355RD. U.S. Form 8832 is the means by which
an LLC entity declares to the IRS how it elects to be treated for U.S.
tax filing and reporting purposes.

Who Should File Form 355RD?

Form 355RD must be filed by only those entities seeking classification as a research and development corporation for purposes
of claiming exemption from local property tax on their machinery
situated in a locality that has adopted the exemption provided under
MGL ch 59, § 5(16).

What Are the Required Qualifications?

In order to qualify as a research and development corporation, an
entity must meet one of the following requirements. It must derive
more than two-thirds of its Massachusetts receipts from research
and development or more than two-thirds of its Massachusetts expenditures must be allocable to research and development. See
Regulation 830 CMR 64H.6.4, Research and Development, for
rules on eligible receipts and expenditures.

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Applications for classification as a research and development corporation must be sent to the Department of Revenue on or before
January 31 of the calendar year for which classification is sought to
be considered for that year. Applications sent after January 31 will
be reviewed for classification for the following calendar year. The
date of the postmark made by the United States Postal Service on
the envelope in which the application is mailed shall determine the
date the application was sent.

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When Are Applications Due?

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An entity qualifying as a research and development corporation
under the requirements of MGL ch 63, § 42B may be eligible for
the Investment Tax credit provided under MGL ch 63, § 31A and
for sales tax exemptions provided under MGL ch 64H, § 6(r) and
(s) on its purchases of materials and machinery used directly and
exclusively in research and development. This is without regard to
whether it is classified by the Commissioner as a research and development corporation.