Tax Savings Programs for Massachusetts Life Sciences Companies

Jan 18, 2024

For those operating or investing in Massachusetts Life Sciences Companies, you should be familiar with the following programs:

Posted by WithumSmith+Brown

Massachusetts Companies

The Massachusetts Life Sciences Center Tax Incentive Program application window is now open and is offering lucrative tax savings to eligible companies. Companies that apply and are accepted into this program can benefit from various tax benefits, such as:

  • Life Sciences Investment Tax Credit (pursuant to M.G.L c. 62, §6(m) and c. 63, §38U)
  • Extension of Net Operating Losses (NOLs) from 5 to 15 years (pursuant to M.G.L. c. 63, §30(17))
  • Designation as R&D Company for Sales Tax Purposes (pursuant to M.G.L. c. 63, §42B)
  • Sales Tax Exemption for Certain Property (pursuant to M.G.L. c. 64H, §6(xx))
  • FDA User Fees Credit (pursuant to M.G.L. c. 62, §6(n) and c. 63, §31M)
  • And several other tax benefits

Applicants should meet the following criteria:

  • Companies must be registered to do business in Massachusetts
  • Companies must employ at least 10 permanent FTEs (35 hours/week) as of December 31, 2023
  • Companies must commit to hiring at least 10 net new jobs in calendar year 2024 and be able to retain those jobs through 2028

Online applications and additional information can be found on the Massachusetts Life Sciences Center website.

Applications are due at noon EST on February 2, 2024, so interested companies should act fast.

Author: Robert Traester, CPA, MST | rtraester@withum.com

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