Massachusetts - Current credit for TY2026

Massachusetts R&D tax credit (2026)

Massachusetts has a research credit for tax year 2026: 10% of qualified research expenses above the base amount, where the base amount is the federal §41 base, applied to state expenses.

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Unused credit carries forward 15 years. It is claimed on Schedule RC.

What catches people out: How much you can use in a year is limited by excise liability - a number that lives on the return, not in the study.

Figures reflect the rules registry Ricerca's platform computes from (version 2024.1, exported September 10, 2026). State rules change; the study applies the law for the tax year claimed.

Credit at a glance

Credit rate: 10% of qualified research expenses above the base amount
Base method: The federal §41 base, applied to state expenses
Carryforward: 15 years
Refundable?: Not determined in our registry - we confirm it in the study
State form: Schedule RC

From registry version 2024.1, the entry our engine applies for TY2026. Not an estimate of your credit.

Filing guide, cited to official Massachusetts sources

How to claim the Massachusetts R&D credit

These steps, forms and dates are procedure taken from official Massachusetts publications, listed under "Sources for this section" and verified on September 28, 2026. The rate, base and carryforward figures on this page come from Ricerca's rules registry.

Step by step

1 Confirm the filer. Any business corporation subject to the corporate excise under MGL ch 63 can claim the credit, and financial institutions are eligible too (TIR 25-3).
2 Total Massachusetts qualified research expenses: wages for services performed in Massachusetts, supplies used or consumed in Massachusetts, computer rental for research in Massachusetts, and 65% of contract research at research facilities in Massachusetts.
3 Complete Schedule RC. A member of a controlled group, or of a group under common control, computes the credit for the whole group and then takes its share based on its portion of the group's expenses. All members make the same elections.
4 Report the credit on Schedule CMS and enclose both schedules with the return. The instructions warn that failing to do so may result in the credit being disallowed.
5 Reduce the deduction for research expenses by the credit generated (Schedule E, line 13 on Forms 355 and 355S).
6 Apply the limitation: the credit can offset the first $25,000 of excise plus 75% of excise above $25,000, and cannot reduce the excise below the $456 minimum. Credit blocked by these limits carries over to later years.

Federal Form 6765, line by line Estimate the federal credit State R&D credits in 2026: rates and refundability

Which form to file

Which form to file for the Massachusetts R&D credit
Form	Who files it	Link
Schedule RC, Research CreditSchedule RC	Every corporation that generates or uses the MGL ch 63, §38M research credit, as part of its return	Official page
Schedule CMS, Credit Manager ScheduleSchedule CMS	Where the research credit claimed is reported; enclosed with Schedule RC and the return	Official page

Who can claim it

Only research conducted in Massachusetts counts.
An S corporation can apply the credit against its own excise but cannot share excess credit with its shareholders.
Corporations that file a combined report may share excess credits with other corporations in the same combined return, to the extent those corporations can use them within the limitations.
The Life Sciences Research Credit (MGL ch 63, §38W) is separate. It is available only to companies certified under the Life Sciences Tax Incentive Program and authorized by the Massachusetts Life Sciences Center, and it is reported on Schedule CMS with the MLSC certificate number rather than on Schedule RC.

Program rules worth knowing

Corporations may compute the credit separately for defense-related activities on a second Schedule RC. The 2025 instructions expand defense-related activities to include medicines and medical supplies for chemical, biological, radiological or nuclear threats; biologic products, vaccines, blood products and antibodies; and antimicrobial or antiviral drugs, threat-agent diagnostic tests and personal protective equipment.

Massachusetts R&D tax credit FAQ

Who can claim the Massachusetts research credit?

Any business corporation subject to the corporate excise under MGL ch 63, including financial institutions after TIR 25-3. An S corporation can use the credit against its own excise but cannot share excess credit with its shareholders. Only research conducted in Massachusetts counts, and each corporation that generates or uses the credit completes Schedule RC with its return.

What do I file to claim the credit?

Schedule RC, which every corporation that generates or uses the §38M research credit completes as part of its return, and Schedule CMS, the Credit Manager Schedule, where the credit claimed is reported. Both must be enclosed with the return; the instructions warn that a missing schedule may result in the research credit being disallowed.

How much of the credit can I use in a year?

Up to 100% of the first $25,000 of excise plus 75% of excise above $25,000, and never below the $456 minimum excise. Members of an aggregated group share a single $25,000 amount. Credit blocked by these limits carries over to later years, and corporations in a combined report may share excess credit within the group.

Is the Life Sciences Research Credit the same thing?

No. The Life Sciences Research Credit under MGL ch 63, §38W is a separate credit for companies certified under the Life Sciences Tax Incentive Program and specifically authorized by the Massachusetts Life Sciences Center. It is reported on Schedule CMS with the MLSC certificate number, cannot exceed the authorized amount, and is not claimed on Schedule RC.

Sources for this section

The Massachusetts filing guide and FAQ above are drawn from these official publications and were verified on September 28, 2026. They are re-checked each year and whenever a listed deadline passes.

Massachusetts R&D credit rules for TY2026

Each row is a field from the registry entry our engine applies. A blank field says so; it is never filled in.

Credit for TY2026: Current credit Yes. Our rules registry carries a current Massachusetts research credit for tax year 2026.
Structure: Incremental: the credit applies to qualified research expenses above a state base amount
Credit rate: 10% of qualified research expenses above the base amount
Base method: The state adopts the federal §41 base computation, applied to Massachusetts qualified research expenses.
Statutory liability limitation: M.G.L. c. 63 §38M: the credit may offset 100% of the first $25,000 of excise due plus 75% of the excise above $25,000. The limitation depends on Massachusetts excise liability, which is outside this study's data - the return preparer must apply it.
Carryforward: 15 years
Carryback: None recorded
Refundable?: Not determined in our registry - we confirm it in the study The registry treats an unverified "nonrefundable" as unknown rather than asserting it.
State form: Schedule RC
Statute: M.G.L. c. 63, §38M

How the Massachusetts credit is computed

The Massachusetts credit is incremental: it applies to the qualified research expenses that exceed a state base amount, not to the whole year's spending. The registry carries a rate of 10%.

The state adopts the federal §41 base computation, applied to Massachusetts qualified research expenses.

Unused credit carries forward 15 years. Refundability: not determined in our registry, so the study confirms it against the statute rather than asserting it here.

Ricerca computes the Massachusetts figure from the same substantiated expenses as the federal §41 credit, under the registry entry for the year claimed. Where the registry is silent, the study says so and the point is resolved with your return preparer, not assumed.

Claiming it alongside the federal credit

The federal §41 credit comes first: it is computed from the qualified research expenses the study substantiates and filed on Form 6765 with the return. The Massachusetts credit is then computed from that same base under the state's own rules.

State credits generally reach only research performed in the state, so the study records where each expense was incurred as it is built, not at filing time.

The federal R&D credit, explained Form 6765 guide R&D tax credit calculator Regular vs. ASC calculation methods State R&D credits in 2026 All 23 registry states

One base, two computations

1 Qualify the activities under the four-part test and total the year's QREs.
2 Compute the federal §41 credit and file it on Form 6765.
3 Apply the Massachusetts entry above to the Massachusetts share of that base, and file it on Schedule RC.

Registry sources

The citations the Massachusetts registry entry carries, verbatim: what the study cites and a reviewer can check.

Statute: M.G.L. c. 63, §38M
Form: Schedule RC

Registry entry version 2024.1, exported from services/study-api/app/engines/rules_engine.py (STATE_RULES_2024 + STATE_RULES_REGIME_OVERRIDES via RulesEngine.get_state_rules) on September 10, 2026. The entry above governs TY2026; a study for an earlier year uses that year's entry.

See what a Massachusetts study could capture

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