The Massachusetts Life Sciences Center (MLSC) has announced that it is now accepting applications for a new round of the Center’s Life Sciences Tax Incentive Program, which offers tax incentives to companies engaged in life sciences research and development, commercialization and manufacturing in Massachusetts. The Program, part of the state’s Life Sciences Initiative, is authorized to award up to $25 million in tax incentives each year. The primary goal of the program is to incentivize life sciences companies to create new sustained jobs in Massachusetts.
The deadline for applications to be submitted is February 16, 2017 by noon. Interested applicants are required to submit an online application. Applications will be accepted on an ongoing basis via the MLSC website (http://www.masslifesciences.com/programs/tax/) until the deadline.
In its eighth round, the last seven rounds of the program has awarded more than $160 million to over 100 life science companies of all sizes, resulting in combined net new hire commitments or actual new hires of more than 5,400 jobs among active and completed awards. CBIZ Tofias has assisted clients with the application process and has developed tools to help with gathering the required data and calculations.
Applicants are generally companies that have transitioned or are transitioning from pure life sciences research and development (“R&D”) to commercialization and manufacturing. The Center recognizes the significant capital investment associated with the life sciences R&D cycle and the high cost of translating research into commercially viable products. To qualify, companies must receive certification from the MLSC as well as demonstrate both scientific and economic merit to their expansion plans.
Some of the incentives available through the program include:
- Life sciences investment tax credit (refundable)
- FDA user fees credit (refundable)
- Extension of net operating losses from 5 to 15 years
- Elimination of throwback provision
- 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)
CBIZ Tofias has the experience to assist life science companies in the certification and application process, as well as with other tax matters affecting life science companies. If you have any questions or require assistance, you may contact us here.
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