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Massachusetts Research Credit
Extracted from PDF file 2023-massachusetts-schedule-rc.pdf, last modified February 2023Research Credit
2023 SCHEDULE RC, PAGE 1 CORPORATION NAME FEDERAL IDENTIFICATION NUMBER Schedule RC Research Credit 2023 Enclose Schedule RC to the return of each member of the group that is reporting Massachusetts basic research payments, qualified research expenses, or is taking research credit against the excise. Controlled groups and entities under common control are required to compute the research credit on an aggregate basis. Refer to Proposed Regulation 830 CMR 63.38M.2(9). Fill in applicable oval(s): Taxpayer is electing to calculate the credit separately for defense-related activities (see instructions). Taxpayer is electing to calculate the credit under the alternate simplified method provided in MGL ch 63, § 38M(b). Taxpayer is electing to calculate the credit for qualified research expenses using Massachusetts gross receipts. PART 1. QUALIFIED RESEARCH EXPENSES 1 Qualified wage expenses for this corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Qualified supply expenses for this corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Qualified computer rental time expenses for this corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Enter 65% of qualified contract expenses for this corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Total qualified research expenses for this corporation. Add lines 1 through 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Total qualified research expenses for the aggregated group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 PART 2. CREDIT DETERMINED UNDER MGL CH 63, § 38M(b) (ALTERNATE SIMPLIFIED METHOD) If using the Alternative Simplified Method and you did not have qualified research expenses in each of the three prior years, fill in oval Also, skip lines 7 through 10. 7 Average qualified research expenses for the 3 most recent prior years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Enter 50% of line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 Subtract the amount on line 8 from current year expenses on line 6. Not less than “0”. . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Applicable rate for the Alternate Simplified Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Total credit for the group. If the taxpayer did not have qualified research expenses in each of the three prior years, enter 5% of the amount on line 6; otherwise, multiply line 9 by line 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Percentage of aggregated group credit attributable to this corporation. Line 5 divided by line 6 . . . . . . . . . . . . . . . . . . . . 12 13 Amount of group credit for this corporation. Multiply line 11 by line 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2023 SCHEDULE RC, PAGE 2 PART 3. CREDIT DETERMINED UNDER MGL CH 63, § 38M(a) 14 Fixed-base ratio (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 Average annual gross receipts from the 4 most recent taxable years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16 Base amount. Multiply line 14 by line 15. Not less than 50% of line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 Subtract line 16 from current year expenses on line 6. Not less than “0” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Total group credit for qualified research expenses. Multiply line 17 by 10%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 19 Total group credit for basic research payments (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20 Total Research Credit for the aggregated group. Combine lines 18 and 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 Percentage of aggregated group credit attributable to this corporation. Line 5 divided by line 6 . . . . . . . . . . . . . . . . . . . . 21 22 Amount of credit for this corporation. Multiply line 20 by line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 PART 4. MASSACHUSETTS RESEARCH CREDIT USED Unless it is a member of an aggregated group, the amount of credit that a corporation may use to reduce the excise is limited to 100% of the corporation’s first $25,000 of corporate excise liability, plus 75% of the corporation’s excise liability over $25,000. These limitations apply to each separate member of a combined group unless such member is also a member of an aggregated group. The corporate excise liability of each combined group member is each member’s separately computed excise determined under MGL ch 63, § 39. A single $25,000 amount applies to all members of an aggregated group, plus 75% of the aggregated group’s corporate excise liability in excess of $25,000. Each aggregated group member determines its subtotal of excise within the limitation by entering its share of excise not subject to the 75% limitation, plus 75% of its separate corporate excise liability in excess of $25,000. 23 Total excise before credits for this corporation (from Form 355, line 6; Form 355S, line 9; or Schedule U-ST, line 37) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 24 Total of aggregated group excise before credit. Enter the amount of line 23 on line 24 if not a member of an aggregated group (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 25 Allocation percentage for the $25,000 excise bracket. Divide line 23 by line 24. Enter 1.000000 if not a member of an aggregated group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 26 Corporation’s share of excise not subject to the 75% limitation. (line 25 percentage × $25,000, but not more than line 23).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 27 Corporation’s excise subject to the 75% limitation. Subtract $25,000 from line 23. Not less than “0”. . . . . . . . . . . . . 27 28 75% of excise subject to limitation. Multiply line 27 by .75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 29 Corporation’s subtotal of excise within the limitation. Add lines 26 and 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Schedule RC
More about the Massachusetts Schedule RC Corporate Income Tax Tax Credit TY 2023
We last updated the Research Credit in January 2024, so this is the latest version of Schedule RC, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule RC directly from TaxFormFinder. You can print other Massachusetts tax forms here.
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TaxFormFinder has an additional 126 Massachusetts income tax forms that you may need, plus all federal income tax forms.
| 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 RC from the Department of Revenue in January 2024.
Schedule RC 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 RC
We have a total of thirteen past-year versions of Schedule RC in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2011 Schedule RC
sch. RC
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