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Massachusetts Economic Opportunity Area Credit
Extracted from PDF file 2023-massachusetts-schedule-eoac.pdf, last modified May 2023Economic Opportunity Area Credit
Schedule EOAC Economic Opportunity Area Credit Name 2023 Federal Identification or Social Security number General information 1 Type of business for which property is being used (fill in only one): ● Sole proprietorship ● Partnership ● S corporation ● Financial institution ● Insurance company ● Corporation ● Trust ● Corporation included in a combined return ● Other (specify)_________________________________________________________________________________________________ Name and identification number of type of business indicated above_________________________________________________________ 2 Type of return this schedule is filed with________________________________________________________________________________ 3 Location of certified project__________________________________________________________________________________________ 4 Date project was certified by EACC___________________________________________________________________________________ Computation of 5% current year Economic Opportunity Area Credit (EOAC) 5 Briefly, but accurately, describe purchases of qualifying property for the 5% EOAC. Complete details must be available upon request. Date acquired Life or recovery (years) 6 Total cost of property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 US basis reduction, if any. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Total cost of property after reduction. Subtract line 7 from line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 Available current-year EOAC. Multiply line 8 by .05. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Credit allowable in current year. Corporate taxpayers omit this section. 10 Total tax for determining allowable credit. Form 1, line 28; Form 1-NR/PY, line 32; or Form 2, line 41. . . . . . . . . . 10 11 Total of other credits. See instructions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Subtract line 11 from line 10. Not less than “0” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Enter 50% of line 12. Multiply line 12 by 0.5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 EOAC available this year. Add line 9 and prior year’s unused EOAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 EOAC allowable for use in current year. If line 13 is greater than or equal to line 14, enter line 14. If line 13 is less than line 14 enter line 13. Also enter this amount on Form 1, Schedule CMS; Form 1-NR/PY, Schedule CMS; Form 2, Schedule CMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Cost (if not using cost, explain on separate sheet) Schedule EOAC Instructions General Information What Is the Economic Opportunity Area Credit? The Economic Opportunity Area Credit (EOAC) is a tax credit equal to 5% of the cost of property purchased for business use within a Certified Project in an EOA. The credit covers all property that is 1) eligible for the current 3% Investment Tax Credit (ITC) and 2) used exclusively in a certified project in an economic opportunity area (EOA). The 5% EOAC and the 3% ITC cannot be taken for the same property. In the case of a taxpayer having property which meets the criteria for both credits, the taxpayer may choose either of the credits, but may not take both credits for the same property. What Is an EOA? An EOA is an area that has been designated by the Economic Assistance Coordinating Council (EACC) to be a “decadent area” or a “blighted open area” which is detrimental to the sound growth of a community and unlikely to be developed by the ordinary operation of private enterprise. Who Is Eligible to Take the EOA Credit? The credit is available to all businesses regardless of whether the business is a sole proprietorship, partnership, corporate trust or corporation. It is also available to financial institutions, insurance companies and public service corporations. What If My Economic Opportunity Area Credit Originated from a Pass-Through Entity? Line Instructions Line 1. Check the type of business for which the property is being used. Line 2. Enter the type of return that you file. Enclose a copy of this schedule with your return. Line 3. The location of the certified project should be entered here. Line 4. Enter the date the project was certified by the EACC. Line 5. Enter here an accurate description of the qualifying property for the 5% EOAC. The credit is limited to property purchased for business use within the EOA. Line 6. Enter the total cost of the property purchased for business use in the certified project as approved by the EACC. Line 7. Enter the amount taken for any US basis reduction. Line 8. Subtract line 7 from line 6. This is the total cost of the property after deducting any US basis reduction. Line 9. Multiply line 8 by 5% (.05). This equals the available current year EOAC. If you are an S corporation shareholder, you will be notified by the S corporation of the amount to enter in line 9. If you are a general or limited partner you will be notified by the partnership of the amount to enter in line 9. If this credit originated from a pass-through entity, for example, a partnership, you must enter the name and identification number of that pass-through entity and begin completing this schedule at line 9. Credit allowable in the current year. Most taxpayers can offset up to 50% of their tax due with the EOAC. Note: Corporate taxpayers omit lines 10 through 17. What Is a Certified Project? Line 10. Enter in line 10 your total tax from Form 1, line 28; Form 1-NR/PY, line 32; or Form 2, line 41. A Certified Project is a business proposal that has been approved by the EACC. To qualify as a valid business proposal, the proposal must include a workable plan to increase employment in the EOA and must be approved by the municipality located in the EOA. What Type of Property Is Eligible for the Credit? Property purchased for business use in a certified project may be used in the calculation of the credit. This property must qualify for the credit allowed under MGL ch 63, § 31A. Are There Limitations to the Credit? Line 11. Taxpayers filing Form 1, Form 1-NR/PY or Form 2, add the Limited Income Credit, Credit for Income Taxes Paid to Other Jurisdictions, Lead Paint Credit, Economic Development Incentive Program Credit, Septic Credit, Low-Income Housing Credit, Historic Rehabil itation Credit, Film Incentive Credit, Medical Device Credit, Brown fields Credit, Employer Wellness Program Credit, Farming and Fisheries Credit, Low-Income Housing Donation Credit, and Veterans Hire Credit. Enter the result in line 11. All other taxpayers enter “0.” Yes. Taxpayers subject to tax under MGL ch 62 (sole proprietorships, trusts and partnerships) are allowed to use the EOAC to offset up to 50% of their tax due. Corporations may offset up to 50% of the excise due with the EOAC. Corporations cannot use the credit to lower their excise below the minimum. The 50% limitation does apply to financial institutions, insurance companies and public service corporations. Line 12. Subtract line 11 from line 10 and enter the result here. Do not enter less than “0.” May Excess Credits Be Carried Over from Year to Year? Line 15. For taxpayers filing Form 1, Form 1-NR/PY or Form 2, if line 13 is greater than or equal to line 14, enter line 14 here. If line 13 is less than line 14, enter line 13 here. Yes. Taxpayers subject to tax under MGL ch 62 may carryover unused credits for ten years. Taxpayers subject to tax under MGL ch 63 may carry over for ten years any credits not used due to the minimum excise limitation. However, any credits not used due to the 50% limitation can be carried over for an unlimited period of time. Line 13. Enter 50% of line 12 in line 13. Line 14. Add line 9 and any prior years unused EOAC from 2019, Schedule EOAC, line 17, column c. Enter the result in line 14. Enter the amount from line 15 in Schedule CMS, Credit Manager Schedule, and be sure to attach Schedule CMS with your return. Any credits not used in the current year due to the 50% limitation may be carried over for an unlimited number of years.
Schedule EOAC
More about the Massachusetts Schedule EOAC Corporate Income Tax Tax Credit TY 2023
We last updated the Economic Opportunity Area Credit in January 2024, so this is the latest version of Schedule EOAC, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule EOAC directly from TaxFormFinder. You can print other Massachusetts tax forms here.
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| Form Code | Form Name |
|---|---|
| Form 2 | Fiduciary Income Tax Return |
| Schedule DRE | Disclosure of Disregarded Entity |
| Schedule D-IS | Long-Term Capital Gains and Losses Excluding Collectibles |
| Form 355-7004 | Corporate Extension Worksheet |
| Form 3 | Partnership Return |
View all 127 Massachusetts Income Tax Forms
Form Sources:
Massachusetts usually releases forms for the current tax year between January and April. We last updated Massachusetts Schedule EOAC from the Department of Revenue in January 2024.
Schedule EOAC is a Massachusetts Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Massachusetts Schedule EOAC
We have a total of thirteen past-year versions of Schedule EOAC in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2011 Schedule EOAC
sched. EOAC
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