§ 38RR — Refundable credit under climatetech tax incentive program; eligibility; use and refunds

Massachusetts § 38RR

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

Text

[ Text of section added by 2024, 238, Sec. 212 effective November 20, 2024 for
tax years beginning on or after January 1, 2024. See 2024, 238, Sec. 325.]Section 38RR. (a) As used in this section, the following words shall have the
following meanings unless the context clearly requires otherwise:"Capital investment", expenses incurred for the site preparation and construction,
repair, renovation, improvement or equipping of a building, structure or
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 climatetech company", as defined in section 1 of chapter 23J."Climatetech facility", a building, complex of buildings or structural components
of buildings, including access infrastructure, and all machinery and
equipment used in the research, manufacturing, assembly, development, provision
or administration of goods or services in the climatetech sector."Owner", a taxpayer subject to tax under this chapter that: (i) is a corporation
that holds title to a climatetech facility; or (ii) ground leases the land
underlying a climatetech facility for not less than 50 years."Tenant", a taxpayer subject to tax under this chapter that is a lessee in a
climatetech facility.(b) An owner or tenant, to the extent authorized by the climatetech tax
incentive program established in section 16 of chapter 23J, may take a refundable
credit against the taxes imposed by this chapter in an amount, as determined
by the center, of not more than 50 per cent of the owner's total capital
investment in a climatetech 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 16 of said chapter 23J.(c) An owner shall be eligible for a tax credit under this section if the owner
demonstrates to the center that the: (i) owner is a certified climatetech
company; (ii) owner's total capital investment in the climatetech facility equals
not less than $5,000,000; and (iii) climatetech facility will employ not less than
50 new full-time employees by the fifth year of the owner's certification period
under section 16 of chapter 23J. Upon verification, the center shall provide this information to the department of revenue for the purpose of administering the
credit.(d) A tenant shall be eligible for a tax credit under this section if the tenant
demonstrates to the center that the: (i) tenant is a certified climatetech
company; (ii) owner's total capital investment in the facility equals not less than
$5,000,000; (iii) tenant occupies a leased area of the climatetech facility that
represents not less than 25 per cent of the total leasable square footage of the
facility; and (iv) tenant shall employ not less than 13 full-time employees by the
fifth year of the tenant’s certification period under section 16 of chapter 23J.
Upon verification, the center shall 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 climatetech facility for the
taxable year.(e) 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 $30,000,000 annually as set forth in subsection (d) of section 16
of chapter 23J.(f) The department of revenue shall promulgate such rules and regulations as
necessary to administer the credit established in this section.