§ 38OO — Credit against the tax liability; transfer of credit; carry forward of credit; disallowance of credit by commissioner; adoption of regulations

Massachusetts § 38OO

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

Text

[ Text of section added by 2024, 150, Sec. 26 effective August 6, 2024 until January 1, 2030, for tax years beginning on or after January 1, 2025. See 2024, 150, Sec. 140. Repealed by 2024, 150, Sec. 137. See 2024, 150, Sec. 142.]Section 38OO. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:"Development cost'', as defined in section 36 of chapter 23B."Executive office'', the executive office of housing and livable communities, established pursuant to chapter 23B."Qualified conversion project'', as defined in section 36 of chapter 23B."Sponsors'', as defined in section 25 of chapter 23B.(b) A credit shall be allowed against the tax liability imposed by this chapter, to the extent authorized by the executive office, in consultation with the commissioner, for a qualified conversion project that has been completed and certified by the executive office pursuant to section 36 of chapter 23B. The credit shall be equal to an amount not more than 10 per cent of the qualified conversion project development costs. The credit shall be allowed for the taxable year in which the executive office provides the commissioner written notification of completion of the certified qualified conversion project. For any certified qualified conversion project, development costs applicable to this credit shall be treated for purposes of this section as made on the date that the executive office provides the commissioner written notification of completion of the certified qualified conversion project and any data related to the development costs.(c) A taxpayer eligible for the credit may, with prior notice to the commissioner, transfer the credit, in whole or in part, to any individual or entity with tax under this chapter or chapter 62, and the transferee shall be entitled to apply the credit against the tax with the same effect as if the transferee had incurred the development costs itself. If the sponsor of the certified housing development qualified conversion project is a partnership or a limited liability company taxed as a partnership, the credit, if transferred, must be transferred by the partnership or the limited liability company. If the credit allowed to a partnership, a limited liability company taxed as a partnership or multiple owners of property are not transferred they shall be passed through to the persons designated as partners, members or owners, respectively, pro rata or pursuant to an executed agreement among the persons designated as partners, members or owners documenting an alternative distribution method without regard to their sharing of other tax or economic attributes of the entity. Credits passed through to individual partners and members shall not be transferable. Any amount of the tax credit that exceeds the tax due for a taxable year may be carried forward by the transferee, buyer or assignee subsequent taxable years from which a certificate is initially issued by the executive office; provided, however, that in no event shall the transferee apply the credit to the tax due for any taxable year beginning more than 10 years after the taxable year in which the executive office provides the commissioner written notification of completion of the certified qualified conversion project.(d) If the credit allowable for any taxable year exceeds the taxpayer's tax liability for that tax year, the taxpayer may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of the credit which exceed the tax for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax due for any taxable year beginning more than 10 years after the taxable year in which the executive office provides the commissioner written notification of completion of the certified qualified conversion project.(e) The commissioner of revenue may, as of the effective date of a revocation pursuant to subsection (f) of section 36 of chapter 23B, disallow any credits allowed under this section.(f) The commissioner, in consultation with the executive office, may adopt regulations necessary to carry out this section, including regulations to recapture the value of any tax credits allowed under this section.