Massachusetts R&D Tax Credits: Are You Missing Out?

This lucrative credit program offers tax incentives for research and development investments on both the state and federal levels.

It’s no secret that companies in various industries now rely on technology to get the job done. Traditionally, this translated to computer or lab work, but over the last two decades, leaning on applied science or innovative strategies has become a widely used practice.

In Massachusetts, businesses that invest in research and development are eligible for a state and federal tax credit. In-state, the credit is divided into two categories: a 10% credit for qualifying costs and a 15% credit for basic research payouts to colleges, hospitals, or other research institutions. In addition, tax credits in excess of the company’s liability may be carried over for 15 years according to the Massachusetts state website.

R&D activities that Massachusetts companies may already be implementing include:

  • New and unique processes
  • New consumer products
  • Creation of prototypes
  • Testing and design improvement
  • Patent acquisition

The companies that can benefit from the R&D tax credit in Massachusetts span a variety of industries. Manufacturing, architecture, food & beverage, construction and technology companies are all encouraged to apply under the guidance of R&D tax professionals. Pairing with an experienced tax expert is key to navigating the application’s legal language and ensuring you receive the largest tax credit possible.

Contact National Tax Group at (561) 257-3436 for a free estimate of your company’s Massachusetts state and federal R&D tax credits.

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