Definitions

For purposes of 830 CMR 62.6.5, the following terms have the following meanings, unless the context requires otherwise.

Business. A profession, sole proprietorship, trade partnership, corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, non-profit entity or other business entity engaged in the life sciences as defined in M.G.L. c. 23I, § 2.

Code . A s defined in M.G.L. c. 62, § 1, which refers to the federal Internal Revenue Code, with certain modifications.

Commissioner . T he Commissioner of Revenue or the Commissioner’s duly authorized representative.

Credit . The angel investor credit provided in M.G.L. c. 62, § 6(t).

DOR . The Massachusetts Department of Revenue.

EOHED . T he Executive Office of Housing and Economic Development.

Gateway Municipality . A Gateway Municipality as defined in M.G.L. c. 23A, § 3A.

MLSC . The Massachusetts Life Sciences Center.

Qualifying business . A business that:

(a) has its principal place of business in the Commonwealth; (b) has at least 50% of its employees located in the business’s principal place of business; (c) has a fully developed business plan that includes all appropriate long-term and short-term forecasts and contingencies of business operations, including research and development, profit, loss and cash flow projections and details of angel investor funding; (d) employs 20 or fewer full-time employees at the time of the taxpayer investor’s initial qualifying investment in a business; (e) has a federal tax identification number; and (f) has gross revenues equal to or less than $500,000 in the fiscal year prior to claiming eligibility.

Qualifying investment . A monetary investment that is at risk and is not secured or guaranteed; provided, however, that a qualifying investment shall not include venture capital funds, hedge funds or commodity funds with institutional investors or investments in a business involved in retail, real estate, professional services, gaming or financial services.

Taxpayer investor . A n accredited investor, as defined by the United States Securities and Exchange Commission pursuant to 15 USC § 77b(15)(ii), who is not:

(a) the principal owner of the qualifying business; or (b) involved in the qualifying business as a full-time professional activity.