Massachusetts Opens New Incentives Round for Life Sciences Businesses
Massachusetts Life Sciences Center announces new Tax Incentive Program Round
The Massachusetts Life Sciences Center has introduced the 16th round of its Tax Incentive Program. This initiative is tailored for companies involved in life sciences research, development, manufacturing, and commercialization within Massachusetts. The program aims to support businesses of all sizes by offering incentives to foster growth and create sustainable, long-term jobs in the state’s thriving life sciences sector. Deadline for applications to pursue the $40 million tax incentives is approaching on February 19th, 2025.
SNAPSHOT
Incentives for companies engaged in life sciences research and development, commercialization and manufacturing in Massachusetts
Incentives include a refundable tax benefit
Up to $40 million in tax incentives are available for the current program round
Current application period runs from Dec. 16, 2024 through Feb. 19, 2025
PROGRAM BENEFITS
The value of the award is calculated as a function of a discretionary credit amount multiplied by the number of new jobs created. To utilize the full value of the award, taxpayers may select one or a combination of nine incentives available only to Certified Life Science Companies:
Life sciences investment tax credit (refundable)
FDA user fees credit (refundable)
Extension of net operating losses from 5 to 15 years
90% refund of already-available excess §38M research credits (refundable)
§38W life sciences research credit
Deduction for qualified orphan drug expenses
Designation as R&D company for sales tax purposes
Sales tax exemption for certain property
Life sciences jobs incentive credit (refundable)
ELIGIBILITY REQUIREMENTS
Must be registered to do business in Massachusetts
Must be filing a Massachusetts tax return for 2024
Employ at least 10 permanent Massachusetts FTEs (defined as working at least 35 hours/week) as of December 31, 2024
Companies must commit to hiring in calendar year 2025 in Massachusetts and commit to retaining those jobs through December 31, 2027
More information on the program details can be found on the Massachusetts Life Science Center website.
CONNECT WITH THE HICKEY INCENTIVES TEAM
The Hickey & Associates incentives team has advised companies in the Life Sciences industry in the Commonwealth of Massachussets, throughout the United States, and around the world. Given the limited timeframe to apply, and the current aggregate credit limit, contact us to learn more about the program and your project’s eligibility.