Program Overview
The Tax Incentive program is offered to companies engaged in life sciences research and development, commercialization and manufacturing in Massachusetts. The program provides incentives to companies, of all sizes, looking to expand their efforts by creating new, long-term jobs in Massachusetts.
For interested companies, the MLSC offers info sessions on eligibility requirements, various tax incentives available, explanation of the application process, and timeline for awards. Please view info session dates below for more information on dates, times, and location.
Eligibility & Evaluation
- Registration to do business in Massachusetts is required of companies.
- Companies must also employ at least 10 permanent FTEs (35 hours/week) as of December 31, 2020.
- Companies must commit to hiring at least 10 net new jobs in calendar year 2021 and be able to retain those jobs through 2025.
Interested applicants will be required to submit an online application. This is a one-step application process that includes information necessary for the applicant company to be certified under the Life Sciences Act. Please see sections 5 and 6 of the Solicitation for more information regarding the application process and further details on the eligibility requirements.
Companies that receive a tax incentive award are required to provide Quarterly and Annual Reports to monitor the progress of the hiring against the commitment levels, which were the basis of the award provided. Companies not in compliance with their hiring commitments will be decertified. Decertified companies must return tax incentives to the Massachusetts Department of Revenue. Please see Policies & Reports for the program policies regarding reporting, acquisitions, divestiture, and termination of incentives.
Resources
Department of Revenue Tax Information Release on Life Sciences Tax Incentive Program
Department of Revenue Tax Information Release on calculation and recapture of Certain Life Science Tax Incentives
Life Sciences Jobs Incentive Refundable Credit
Annual Report and Award Policy
Tax Program Termination Policy
Report on Deferral of Decertification for 2020 Tax Reporting Cycle
Report on Deferral of Decertification for 2019 Tax Reporting Cycle
Report on Deferral of Decertification for 2018 Tax Reporting Cycle
Impact on the Ecosystem
To ensure the Massachusetts’ ecosystem stays the hotbed for life sciences activity, we will continue to make investments through our Tax Incentive program to create jobs, build a robust workforce, and propel the development of new therapies, devices, and scientific advancements that are improving patient health and well-being.
To date, the Tax Incentive program has resulted in combined net new hire commitments or actual new hires of 8,162 jobs among active and completed awards. After eleven rounds of the program, more than 291 awards totaling more than $241 million has supported life sciences companies of all sizes, sectors and geographic distribution across Massachusetts.
Connect with us to Learn More
If you have any questions regarding the application process, e-mail: TaxProgram@masslifesciences.com.