Schedule CMS: Credit Manager Schedule (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule CMS is the 2024 Credit Manager Schedule for reporting tax credits available for use, including credits not used during the year. It records credits taken to reduce tax, refundable credits, and credits shared with affiliates or distributed to partners, share
Who files this form
Taxpayers with credits available for use in tax year 2024 must file Schedule CMS to report those credits and how much of each credit they use. List all available credits, even if you are not using them this year.
Corporations filing a combined report must report credits shared with affiliates. Pass-through entities must report credits distributed to each partner, shareholder or beneficiary in the credit shared column, except for Brownfields, Film Incentive and Medical Device credits, which must be transferred to those recipients.
What you'll need
Have the following information ready, as applicable:
- Your taxpayer name and identification number.
- Each credit’s type, related year or period end date, available amount or certificate balance, and amounts taken or shared this year.
- Credit certificate numbers issued by DOR or another state agency, if required to claim the credit.
- Massachusetts K-1 schedules for credits received through those schedules, including the credit source’s federal ID number.
- For refundable credits, the reduction in the available credit balance and the amount claimed as refundable.
Common mistakes
- Leaving out unused credits. List all available credits, including those not used this year.
- Combining credits that must be listed separately. For credits tracked by certificate number, enter each certificate number and its associated credits separately. For other credits, list them separately by type and related year.
- Completing date and certificate fields for non-expiring credits. In section 1, fill in the oval on line 1b and leave lines 1c and 1d blank. In section 3, for non-expiring Research or Investment Tax credits, fill in line 3c and leave lines 3d and 3e blank.
- Putting transferred credits in the wrong section. Brownfields, Film Incentive and Medical Device credits cannot be reported in section 3. Use the new certificate numbers in section 1 after requesting transfers or sales through DOR. Film Incentive credits cannot be reported in section 4; use the new certificate numbers in section 2 after requesting transfers through DOR.
- Overlooking credits already taken or shared. When reporting refundable credits in section 2 or 4, account for credits already taken or shared in section 1 or 3, respectively.
Questions people ask
Do I need to list a credit I am not using this year?
Yes. Schedule CMS requires you to list available credits whether or not you use them in the current year.
Where do I report credits received through Massachusetts K-1 schedules?
Use section 3 for non-refundable credits and section 4 when requesting a refund from refundable credits. Brownfields, Film Incentive and Medical Device credits cannot go in section 3. Film Incentive credits cannot go in section 4. The form directs taxpayers to use new certificate numbers in section 1 or 2, as applicable, after requesting transfers or sales through DOR.
Is the refundable amount always the full reduction in my credit balance?
No. The form states that the refundable amount may be either 90% or 100% of the reduction in the available credit balance.
How do I calculate the totals on page 1?
Add lines 1h and 3i for total credits taken this year. Add lines 2g and 4h for total refundable credits allowable this year.