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Taxpayers that have no Massachusetts corporate excise or income tax liability or are not otherwise required to file a return in Massachusetts that make a qualified investment are nonetheless eligible to claim a refund of the credit by filing a Massachusetts corporate excise or income tax return, as applicable, for the taxable year in which the qualified investment is made.
(14) Organizations Exempt From Taxation Under Code § 501
An organization exempt from taxation under Code § 501 that makes a qualified investment is eligible to claim a refund of the credit. The Commissioner shall apply the credit first against the organization’s liability arising from its unrelated business taxable income, as defined in § 512 of the Code, if any, as reported on the organization’s income tax return, whether or not the credit results from the unrelated business activity of the organization that gave rise to such liability, and then refund the balance of the credit to the organization.
(15) Cash Contributions Where Credit may be Disallowed.
(a) Contributions by Community Partners and Their Employees. A community partner that makes a cash contribution to another community partner is ineligible to claim the credit otherwise allowed under M.G.L. c. 62, § 6M or M.G.L. c. 63, § 38EE with respect to the contribution. Similarly, an employee of a community partner is ineligible to claim the credit otherwise allowed under M.G.L. c. 62, § 6M or M.G.L. c. 63, § 38EE with respect to cash contributions made by such employee to such community partner.
(b) Contributions Where Business Relationship Exists Between Community Partner and Taxpayer. Acash contribution by a taxpayer to a community partner that purchases goods or services from the taxpayer may qualify for the credit under M.G.L. c. 62, § 6M or M.G.L. c. 63, § 38EE only if the cash contribution is not in any way an element of or contingent upon such contractual relationship between the parties or upon its continuation. In the case of any taxpayer who receives or expects to receive payment of more than $1000 from a community partner in the year that the taxpayer makes a cash contribution to such community partner or in the immediately preceding year, the taxpayer must disclose its contractual relationship with the community partner as part of its application for credit and must certify as part of the application that the cash contribution is entirely independent of such contractual relationship. The Commissioner may disallow a credit or recapture a refund in the event that the Commissioner determines, pursuant to audit or otherwise, that any such required disclosure was incomplete or inaccurate.