§ 38MM — Refundable credit for capital investment in an offshore wind facility; amount; eligibility; limitations; administration

Massachusetts § 38MM

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title IX: TAXATION
• Ch. 63: TAXATION OF CORPORATIONS

Text

[ Text of section effective until January 1, 2033 for taxable years beginning on or after January 1, 2023. Repealed by 2022, 268, Sec. 272. See 2022, 268, Secs. 271 and 273.]Section 38MM. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:--"Capital investment'', expenses incurred for the site preparation and construction, repair, renovation, improvement or equipping of a building, structure, facility or other improvements to real property, including, but not limited to, site-related utility and transportation infrastructure improvements."Center'', the Massachusetts clean energy technology center established in section 2 of chapter 23J."Certified offshore wind company'', as defined in section 1 of chapter 23J."Offshore wind facility'', any building, complex of buildings or structural components of buildings, including water access infrastructure, and all machinery and equipment used in the manufacturing, assembly, development or administration of component parts that are primarily used to support the offshore wind industry."Owner'', a taxpayer subject to tax under this chapter that: (i) is a corporation that holds title to an offshore wind facility; or (ii) ground leases the land underlying an offshore wind facility for at least 50 years."Tenant'', a taxpayer subject to tax under this chapter that is a lessee in an offshore wind facility.[ Subsection (b) effective until November 20, 2024. For text effective November 20, 2024, see below.](b) An owner or tenant, to the extent authorized by the offshore wind tax incentive program established in section 8A of chapter 23J, may take a refundable credit against the taxes imposed by this chapter in an amount, as determined by the center, of up to 50 per cent of its total capital investment in an offshore wind facility. The total amount of tax credit awarded pursuant to this section shall be distributed in equal parts over the 5 taxable years that correspond to the period in which the owner or tenant is certified pursuant to said section 8A of said chapter 23J.[ Subsection (b) as amended by 2024, 238, Sec. 210 effective November 20, 2024. For text effective until November 20, 2024, see above.](b) An owner or tenant, to the extent authorized by the offshore wind tax incentive program established in section 8A of chapter 23J, may take a refundable credit against the taxes imposed by this chapter in an amount, as determined by the center, of up to 50 per cent of the owner's total capital investment in an offshore wind facility. The total amount of tax credit awarded pursuant to this section shall be distributed in equal parts over the 5 taxable years that correspond to the period in which the owner or tenant is certified pursuant to said section 8A of said chapter 23J.(c) An owner shall be eligible for a tax credit authorized under this section if the owner demonstrates to the center that: (i) the owner is a certified offshore wind company; (ii) the owner's total capital investment in the offshore wind facility equals not less than $35,000,000; and (iii) the offshore wind facility will employ not less than 200 new full-time employees by the fifth year of the owner's certification period under section 8A of chapter 23J. Upon verification, the center will provide this information to the department of revenue for the purpose of administering the credit.[ Subsection (d) effective until November 20, 2024. For text effective November 20, 2024, see below.](d) A tenant shall be eligible for a tax credit authorized pursuant to this section if the tenant demonstrates to the center that: (i) the tenant is a certified offshore wind company; (ii) the owner has made a total capital investment in the facility that equals not less than $35,000,000; (iii) the tenant occupies a leased area of the offshore wind facility that represents not less than 25 per cent of the owner's capital investment in the facility; and (iv) the tenant will employ, in the aggregate with other tenants at the offshore wind facility, not less than 200 full-time employees by the fifth year of the tenant's certification period under section 8A of chapter 23J. Upon verification, the center will provide this information to the department of revenue for the purpose of administering the credit. The amount of tax credits awarded under this section to a tenant for a taxable year shall not exceed the tenant's total lease payments for occupancy of the offshore wind facility for the taxable year.[ Subsection (d) as amended by 2024, 238, Sec. 211 effective November 20, 2024 until February 18, 2025. For text effective until November 20, 2024, see above. For text effective February 18, 2025, see below.](d) A tenant shall be eligible for a tax credit authorized pursuant to this section if the tenant demonstrates to the center that: (i) the tenant is a certified offshore wind company; (ii) the owner has made a total capital investment in the facility that equals not less than $35,000,000; (iii) the tenant occupies a leased area of the offshore wind facility that represents not less than 25 per cent of total leasable square footage of the facility; and (iv) the tenant will employ, in the aggregate with other tenants at the offshore wind facility, not less than 200 full-time employees by the fifth year of the tenant's certification period under section 8A of chapter 23J. Upon verification, the center will provide this information to the department of revenue for the purpose of administering the credit. The amount of tax credits awarded under this section to a tenant for a taxable year shall not exceed the tenant's total lease payments for occupancy of the offshore wind facility for the taxable year.[ Subsection (d) as amended by 2024, 239, Sec. 41 effective February 18, 2025. For text effective until February 18, 2025, see above.](d) A tenant shall be eligible for a tax credit authorized pursuant to this section if the tenant demonstrates to the center that: (i) the tenant is a certified offshore wind company; (ii) the owner has made a total capital investment in the facility that equals not less than $35,000,000; (iii) the tenant occupies a leased area of the offshore wind facility that represents not less than 25 per cent of total leasable square footage of the facility; and (iv) the tenant will employ not less than 50 full-time employees by the fifth year of the tenant's certification period under section 8A of chapter 23J. Upon verification, the center will provide this information to the department of revenue for the purpose of administering the credit. The amount of tax credits awarded under this section to a tenant for a taxable year shall not exceed the tenant's total lease payments for occupancy of the offshore wind facility for the taxable year.(e) An owner or tenant taking a credit authorized in this section shall not take the credits authorized in sections 38N or 38LL in the same taxable year.(f) The department of revenue shall issue the refundable portion of the credit without further appropriation and in accordance with the cumulative amount, including the current year costs of incentives allowed in previous years, which shall not exceed $35,000,000 annually as set forth in subsection (d) of section 8A of chapter 23J.(g) The department of revenue shall promulgate such rules and regulations as are necessary to administer the credit established in this section.