General Rule

In general, a taxpayer investor making a qualifying investment in a qualifying business may be allowed a credit up to an amount equal to 20% of the qualifying investment. A taxpayer investor who makes a qualifying investment in a qualifying business with its principal place of business located in a Gateway Municipality may be allowed a credit up to an amount equal to 30% of the amount of the taxpayer’s qualifying investment. The credit may be applied only against tax due under M.G.L. c. 62. Any amount of credit allowed that exceeds a taxpayer investor’s tax due for a taxable year under M.G.L. c. 62 may be carried forward to any of the three subsequent taxable years. M.G.L. c. 62, § 6(t) provides for recapture if the qualifying business ceases to have its principal place of business in the Commonwealth within the three taxable years following the taxable year of the investment.

Credits will be awarded by the MLSC in its sole discretion, in accordance with the MLSC’s statutory obligations to support economic development in the life sciences across the Commonwealth and which contribute to a balanced and strong portfolio of tax beneficiaries including, but not limited to, consideration of the following:

(a) alignment with MLSC’s strategic priorities including, but not limited to, advancement of novel modalities, expansion outside of Greater Boston, and growth in manufacturing, digital health and data analytics; (b) ability to create and retain jobs; (c) wide geographic distribution of life sciences operations in the Commonwealth; (d) wide distribution of life sciences technologies and industries supported by the MLSC; (e) diversity among businesses at different stages of product development and commercialization; and (f) ability of the taxpayer investor and the qualifying business to verify eligibility.