355RD: Statement Relating to Research and Development (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Form 355RD is a statement for entities seeking classification as a research and development corporation. It reports Massachusetts research and development activities, receipts, expenditures, tangible personal property, and localities where qualifying property is loc
Who files this form
Form 355RD must be filed only by entities seeking classification as a research and development corporation to claim a local property tax exemption on machinery. The machinery must be in a locality that has adopted the exemption under MGL ch. 59, § 5(16).
To qualify as a research and development corporation, an entity must meet at least one of these requirements:
- More than two-thirds of its Massachusetts receipts come from research and development.
- More than two-thirds of its Massachusetts expenditures are allocable to research and development.
When it's due
For classification for calendar year 2025, the application must be sent to the Department of Revenue on or before January 31, 2025. Applications sent after January 31 are reviewed for classification for the following calendar year.
The printed instructions say a U.S. Postal Service postmark determines when a mailed application was sent. However, the form also states that electronic filing is required and paper returns will not be accepted.
What you'll need
Have the following information ready:
- Corporation name, Federal Identification number, address, phone number, and contact person's details.
- Principal business activity in Massachusetts, current research and development status, and the expected start date if that activity has not begun.
- Massachusetts gross receipts from research and development and from all activities.
- Massachusetts expenditures for research and development, manufacturing, administration, and expenditures excluding manufacturing or administration.
- Descriptions of Massachusetts business activities and research and development performed by employees or by others on a contract, fee, or other basis.
- The number, type, condition, and original cost of tangible personal property in Massachusetts, plus localities where property qualifies for the local property tax exemption.
Attach statements if necessary to describe the activities. If the applicant is an LLC, include a copy of its U.S. Form 8832, Entity Classification Election.
How to file
File electronically. The form warns that paper returns will not be accepted and refers filers to TIRs 16-9 and 21-9.
For electronic filing questions, call 617-887-6367. More information is available at DOR e-filing and payment requirements.
Complete the requested information and activity descriptions, attach statements if necessary, and sign and date the declaration that the information is accurate and complete.
The form also prints this mailing address: Massachusetts Department of Revenue, PO Box 7027, Boston, MA 02204. That mailing direction conflicts with the form's explicit electronic-only warning, so do not treat it as permission to file a paper return.
Common mistakes
- Filing a paper return. The form repeatedly warns that electronic filing is required and paper returns will not be accepted, even though a mailing address is also printed.
Questions people ask
Does an LLC need to include an extra document?
Yes. An LLC must include a copy of its U.S. Form 8832, Entity Classification Election, with Form 355RD.
What if research and development has not started yet?
Answer “No” to the question asking whether the corporation is presently engaged in research and development in Massachusetts, then enter the date the activity will begin in mm/dd/yyyy format.
Do I need to describe work performed by contractors?
Yes. The form asks for a detailed description of research and development performed by others in Massachusetts on a contract, fee, or other basis, as well as work performed by employees on your Massachusetts business premises.
Is this classification required for the Investment Tax Credit or research and development sales tax exemptions?
Not necessarily. The instructions say an entity qualifying under MGL ch. 63, § 42B may be eligible for the Investment Tax Credit and sales tax exemptions on materials and machinery used directly and exclusively in research and development, regardless of whether the Commissioner has classified it as a research and development corporation.