Schedule H: Investment Tax Credit (2025)

Massachusetts · Massachusetts DOR · Used for tax years 2025

Massachusetts Schedule H calculates a corporation’s current-year investment tax credit for qualified depreciable property owned or leased in Massachusetts. It reports property costs, credit adjustments, and the net credit generated to be reported on Schedule CMS.

Who files this form

The 2025 Schedule H is for calculating a corporation’s Massachusetts Investment Tax Credit. The form lists four corporation types:

Classified manufacturer
Agriculture
Commercial fishing
Research and development (R&D)

Select one corporation type. R&D corporations must also complete the receipts test on line 1. The form does not provide detailed eligibility rules.

What you'll need

Have the following information ready to complete Schedule H:

Corporation name and federal identification number.
Costs of qualified depreciable property, owned or leased, located in Massachusetts, grouped by the categories on line 2. These include buildings, machinery, equipment, fixtures, leasehold improvements and other fixed depreciable assets.
Total U.S. investment tax credit and U.S. basis reduction.
Any credit reduction for assets placed in service during the current year that no longer qualified at year end.

R&D corporations also need total receipts and R&D receipts assignable to Massachusetts, plus a description of their R&D category.

If any credits have been converted from expiring to non-expiring, enclose a statement with the return.

How to file

File electronically. The form warns that paper returns will not be accepted.

For questions about electronic filing, call 617-887-6367. See the Massachusetts DOR electronic filing and payment requirements for more information. The form also refers filers to TIRs 16-9 and 21-9.

Report the net current-year investment tax credit from Schedule H, line 8, on Schedule CMS.

Common mistakes

Sending a paper return. The form requires electronic filing and says paper returns will not be accepted.
Leaving out a credit-conversion statement. The form reminds filers to enclose a statement if any credits have been converted from expiring to non-expiring.

Questions people ask

What receipts should an R&D corporation enter on line 1?

Enter only receipts assignable to Massachusetts. Line 1a asks for total receipts, and line 1b asks for the R&D receipts included in that total. Divide line 1b by line 1a for line 1c, and describe the R&D category on line 1d.

Does the property list include leased property?

Yes. Line 2 asks for all qualified depreciable property, owned or leased, located in Massachusetts, grouped by Schedule A category.

How is the available current-year credit calculated?

Add lines 2a through 2h to get the total cost of eligible properties on line 3. Subtract the total U.S. investment tax credit and U.S. basis reduction on line 4 to get line 5. Multiply line 5 by 0.03 to get the available current-year credit on line 6.