Schedule EOAC: Economic Opportunity Area Credit (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Schedule EOAC calculates the Economic Opportunity Area Credit for qualifying property purchased for business use in a certified project. It reports business and project details, property costs, and the available 5% credit, with a section for noncorporate taxpayers t
Who files this form
Schedule EOAC is used to claim the Economic Opportunity Area Credit for qualifying property purchased for business use in 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 the following information available to complete the schedule:
- Your name and federal identification or Social Security number.
- The business type, business name and identification number, and the type of return filed.
- The certified project's location and the date the Economic Assistance Coordinating Council (EACC) certified it.
- Descriptions of qualifying property, acquisition dates, 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 for the property calculation.
- For the allowable-credit calculation, your tax amount, other credits and unused EOAC from prior years.
If the credit comes from a pass-through entity, have its name, identification number and the credit amount it provides for line 9.
How to file
Enclose a copy of Schedule EOAC with your tax return. Enter the type of return you file on line 2.
If you file Form 1, Form 1-NR/PY or Form 2, also enter the amount from line 15 on Schedule CMS, Credit Manager Schedule, and attach Schedule CMS to your return.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Claiming both credits for the same property. Choose either the 5% EOAC or the 3% Investment Tax Credit, not both.
- Selecting more than one business type. Line 1 says to fill in only one.
- Leaving out pass-through information. If your credit comes from a pass-through entity, enter its name and identification number and begin at line 9.
- Completing the allowable-credit section as a corporate taxpayer. Corporate taxpayers are instructed to omit this 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 the return.
Questions people ask
How much is the credit?
The EOAC is 5% of qualifying property cost. Lines 6 through 9 calculate the current-year credit after subtracting any U.S. basis reduction.
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.
What if my credit comes from an S corporation or partnership?
Enter the pass-through entity's name and identification number and begin at line 9. The S corporation or partnership will notify you of the amount to enter there.
Is there a limit on how much credit I can use?
Yes. Taxpayers subject to tax under MGL chapter 62 may offset up to 50% of their tax due. Corporations may offset up to 50% of their excise due but cannot reduce it below the minimum excise. The 50% limit also applies to financial institutions, insurance companies and public service corporations.