Schedule EOAC: Economic Opportunity Area Credit (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule EOAC calculates the Economic Opportunity Area Credit for qualifying property purchased for business use in a certified project in an economic opportunity area. It reports qualifying property costs, the available 5% current-year credit, and, for noncorporate
Who files this form
Schedule EOAC is used to claim the Economic Opportunity Area Credit for qualifying property purchased for business use within a certified project in an economic opportunity area (EOA).
The credit is available to all businesses, including sole proprietorships, partnerships, corporate trusts, corporations, financial institutions, insurance companies and public service corporations.
Qualifying property must be eligible for the 3% Investment Tax Credit and used exclusively in a certified project in an EOA. You cannot claim both credits for the same property.
What you'll need
Have these details available to complete the schedule:
- Your name and federal identification or Social Security number.
- The business type, business name and identification number, and type of tax return.
- The certified project's location and the date it was certified by the Economic Assistance Coordinating Council (EACC).
- Descriptions of qualifying property, acquisition dates, useful life or recovery periods, costs and any U.S. basis reduction. Complete property details must be available upon request.
- A separate explanation sheet if you are not using cost to value the property.
- Tax, other-credit and unused EOAC amounts needed for the current-year credit calculation.
If the credit comes from a pass-through entity, you need that entity's name and identification number. S corporation shareholders and partners receive the line 9 credit amount from the S corporation or partnership.
How to file
Enter the type of return you file on line 2 and enclose a copy of Schedule EOAC with your return.
For Form 1, Form 1-NR/PY or Form 2, enter the credit from line 15 on Schedule CMS, Credit Manager Schedule. Attach Schedule CMS to your return as well.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Selecting more than one business type. Line 1 says to select only one.
- Claiming two credits for the same property. Choose either the 5% EOAC or the 3% Investment Tax Credit, not both.
- Starting in the wrong place for a pass-through credit. Enter the pass-through entity's name and identification number, then begin at line 9.
- Completing the current-year allowable-credit section as a corporate taxpayer. Corporate taxpayers must omit that section.
- Entering a negative amount on line 12. Do not enter less than zero.
- Forgetting Schedule CMS. Filers of Form 1, Form 1-NR/PY or Form 2 must transfer line 15 to Schedule CMS and attach it to their return.
Questions people ask
How is the current-year EOAC calculated?
Subtract any U.S. basis reduction from the total cost of qualifying property, then multiply the result by 5% on line 9.
What is a certified project?
It is a business proposal approved by the EACC. The proposal must include a workable plan to increase employment in the EOA and must be approved by the municipality located in the EOA.
Can the credit eliminate all of my tax?
The instructions limit the credit to 50% of tax due for taxpayers subject to MGL chapter 62 and 50% of excise due for corporations. Corporations also cannot use the credit to reduce their excise below the minimum. The 50% limit applies to financial institutions, insurance companies and public service corporations too.
What if my credit comes from a partnership or S corporation?
Enter the pass-through entity's name and identification number and begin completing the schedule at line 9. The partnership or S corporation will notify you of the amount to enter there.