Schedule RLSC: Refundable Life Science Credit Life Science Company (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule RLSC reports life science tax credits authorized by the Massachusetts Life Science Center for 2024. It shows credits used against tax, unused credits, and the calculation of any authorized refundable credit.
Who files this form
Taxpayers who applied for and were awarded Life Sciences Tax Incentive Program credits by the Massachusetts Life Science Center (MLSC) must file Schedule RLSC with their tax return.
Do not file this schedule unless the MLSC has notified you that it awarded you one of the tax benefits described in the schedule.
All taxpayers claiming MLSC-authorized credits complete Part 1. Taxpayers claiming an authorized refund must also complete Part 2.
What you'll need
Have the following information available to complete the schedule:
- Your taxpayer name, federal identification number, mailing address and phone number.
- The designated life science company representative’s name, email address and phone number.
- The life science company’s name, if different from the taxpayer’s name.
- MLSC-authorized credit and refund amounts, qualified costs, credits used and unused credits.
- Schedule CMS, which is used to calculate the unused research credit entered on Part 2, line 2, and to report the credit and refundable credit amounts.
- For Part 2, line 9, the tax after credits amount from Form 355, line 8; Form 355S, line 11; or Schedule U-ST, line 41.
How to file
File Schedule RLSC with your tax return. The supplied text does not give a mailing address or e-filing instructions.
- Complete Part 1 for MLSC-authorized credits. In column a, enter the smaller of the authorized credit or the credit due for your qualified costs. Show credits used in column b and excess credits in column c.
- Complete Part 2 if you are claiming an MLSC-authorized refund.
- Report the credit and refundable credit amounts at the appropriate locations on Schedule CMS.
- Sign and date the declaration.
Common mistakes
- Filing before receiving an award notice. Do not file unless the MLSC has notified you of an award. Benefits may be claimed only to the extent previously authorized.
- Leaving Part 1 blank for a refund-only award. If the award consists exclusively of permission to seek a refund of available credits, enter “0” in each Part 1 field.
- Using credits to reduce tax below zero. The total credits taken on Part 1, line 5, cannot reduce tax below zero.
- Skipping Part 2 when claiming a refund. Taxpayers claiming an authorized refund must complete it.
- Forgetting Schedule CMS. Report both the credit and refundable credit amounts at the appropriate locations on Schedule CMS.
Questions people ask
Can unused life science credits be refunded?
Taxpayers with unused current-year Life Science Investment Tax Credits, FDA User Fees Credits or Life Science Jobs Credits may apply for a refund at 90% of the credits remaining after reducing their tax liability, instead of carrying those credits forward. Refunds require MLSC authorization.
Can research credits from prior years qualify for a refund?
Corporations with unused research credits under MGL ch 63, § 38M from the current or prior years may request a refund at 90% of their value, to the extent authorized by the MLSC.
What if I am not seeking a Massachusetts Research Credit refund?
Enter 0 on Part 2, lines 1 through 3.
How is the refundable credit on Part 2, line 12 calculated?
Combine lines 3 through 7 on line 8. Subtract the tax after credits on line 9 from line 8, entering no less than zero on line 10. Multiply line 10 by 90% on line 11. On line 12, enter the smaller of line 8 or the total of lines 9 and 11.