Schedule RC: Research Credit (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule RC calculates a corporation’s research credit for 2024. It reports qualified research expenses, basic research payments, group credit allocations, and the credit used against the corporate excise.
Who files this form
For tax year 2024, enclose Schedule RC with the return of each group member that reports Massachusetts basic research payments or qualified research expenses, or uses the research credit against its excise.
Controlled groups and entities under common control must calculate the research credit on an aggregate basis.
What you'll need
Have the following information available to complete Schedule RC:
- Corporation name and federal identification number.
- Qualified wage, supply, computer rental time, and contract expenses for the corporation.
- Total qualified research expenses for the aggregated group, if applicable.
- For the alternate simplified method, qualified research expenses for the three most recent prior years.
- For the Part 3 calculation, the fixed-base ratio, average annual gross receipts from the four most recent taxable years, and the group credit for basic research payments, if applicable.
- Total excise before credits from Form 355, line 6; Form 355S, line 9; or Schedule U-ST, line 37.
- Total aggregated group excise before credit, if applicable.
How to file
Enclose Schedule RC with the return of each group member reporting Massachusetts basic research payments or qualified research expenses, or taking the research credit against the excise.
Fill in the applicable election ovals for separate defense-related calculations, the alternate simplified method, or use of Massachusetts gross receipts to calculate the qualified research expense credit.
The supplied form does not provide a mailing address or e-filing instructions.
Common mistakes
- Do not calculate the credit separately for controlled group members or entities under common control. The form requires an aggregate calculation.
- If using the alternate simplified method and you did not have qualified research expenses in each of the three prior years, fill in the designated oval and skip lines 7 through 10.
- Do not enter a base amount on line 16 that is less than 50% of line 6.
- Do not give each aggregated group member its own $25,000 excise bracket. A single $25,000 amount applies to the whole aggregated group.
- If the corporation is not part of an aggregated group, enter line 23 on line 24 and enter 1.000000 on line 25.
Questions people ask
What expenses are listed in Part 1?
Part 1 lists qualified wages, supplies, computer rental time, and 65% of qualified contract expenses. Add lines 1 through 4 to get the corporation’s total qualified research expenses.
What if I did not have qualified research expenses in each of the three prior years?
Under the alternate simplified method, fill in the designated oval, skip lines 7 through 10, and enter 5% of line 6 on line 11.
How is the group credit allocated to this corporation?
Divide the corporation’s qualified research expenses on line 5 by the aggregated group’s expenses on line 6. Multiply the resulting percentage by the total group credit in the applicable calculation section.
Can the corporation use the credit against all of its excise?
For a corporation that is not part of an aggregated group, the stated limit is 100% of the first $25,000 of corporate excise liability, plus 75% of liability above $25,000. An aggregated group shares a single $25,000 amount, plus 75% of the group’s corporate excise liability above $25,000.