Schedule RC: Research Credit (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Schedule RC calculates a corporation’s research credit and the amount it may use against its corporate excise. It reports qualified research expenses, basic research payments, and the corporation’s share of any aggregated group credit.
Who files this form
Include Schedule RC with the return of each group member that reports Massachusetts basic research payments or qualified research expenses, or takes a research credit against the 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 ready to complete Schedule RC:
- Corporation name and federal identification number.
- Qualified wage, supply, computer rental time, and contract expenses, plus total qualified research expenses for the aggregated group.
- For the alternate simplified method, qualified research expense information for the three most recent prior years.
- For the calculation in Part 3, the fixed-base ratio, average annual gross receipts from the four most recent taxable years, and the group credit for basic research payments, as applicable.
- Total excise before credits from Form 355, line 6; Form 355S, line 9; Form 63-FI, line 7; or Schedule U-ST, line 37.
- Total aggregated group excise before credit, if applicable.
How to file
File electronically. Paper returns will not be accepted. Include Schedule RC with the return of each group member reporting the listed research payments or expenses, or claiming the research credit.
Fill in the applicable ovals for your calculation elections, including separate defense-related activities, the alternate simplified method, and Massachusetts or federal gross receipts.
For questions about electronic filing, call 617-887-6367. See the DOR electronic filing and payment requirements for more information.
Common mistakes
- Sending a paper return. The form warns that electronic filing is required and paper returns will not be accepted.
- Leaving Schedule RC out of a group member’s return. The form directs you to include it for each member reporting the listed research payments or expenses, or taking the credit.
- Calculating a controlled group’s credit separately. Controlled groups and entities under common control must calculate the credit on an aggregate basis.
- Missing the alternate simplified method instruction for prior-year expenses. If you did not have qualified research expenses in each of the three prior years, fill in the oval and skip lines 7 through 10.
Questions people ask
What expenses are listed in Part 1?
Part 1 lists qualified wage expenses, supply expenses, computer rental time expenses, and 65% of qualified contract expenses.
What if I use the alternate simplified method and did not have qualified research expenses in each of the three prior years?
Fill in the oval in Part 2 and skip lines 7 through 10. On line 11, enter 5% of the amount on line 6.
Can I calculate the credit separately for defense-related activities?
The form provides an election oval for calculating the credit separately for defense-related activities.
How much credit can a corporation use against its excise?
For a corporation that is not a member of an aggregated group, the stated limit is 100% of the first $25,000 of corporate excise liability, plus 75% of liability over $25,000. An aggregated group shares a single $25,000 amount, plus 75% of the group’s corporate excise liability above $25,000.
What do I enter on lines 24 and 25 if I am not part of an aggregated group?
Enter the amount from line 23 on line 24. Enter 1.000000 on line 25.