Classification as a Manufacturer for Massachusetts Tax Purposes

Corporations classified as a manufacturing corporation in Massachusetts are entitled to the following tax benefits:

• A local property tax exemption for machinery and equipment;
• A 3% investment tax credit against the corporate excise tax on capital asset additions;
• An exemption from the sales and use tax on equipment and materials purchased for use in manufacturing or research and development.

To qualify for classification as a manufacturing corporation, a corporation must be in existence and be substantially engaged in manufacturing in Massachusetts as of January 1 of the taxable year.

A corporation requesting manufacturing classification must file an application (Form 355Q) with the Department of Revenue’s Determinations Bureau postmarked by January 31 of the taxable year for which the classification is sought.

You should check to see if you are classified as a manufacturer, by going to http://corp.sec.state.ma.us/corp/corpsearch/corpsearchinput.asp.

Feeley & Driscoll can help you determine if you qualify for these manufacturing benefits, as well as assist you with the preparation of this form contact Feeley & Driscoll's Boston Accounting team by Email or call us at 1 (888) 875-9770.

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