Mass. Gen. Laws ch. 63, sec. 38RR — MA Code / Part I / Title IX / Chapter 63 / Section 38RR
Refundable credit under climatetech tax incentive program; eligibility; use and refunds
Status: in_force

[Text of section effective for tax years beginning on or after January 1, 2024. See 2024, 238, Sec. 325.]

[Text of section effective 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.