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Bill

S 2080

An Act relative to the creation of a super research and development tax credit

194th Legislature (2025-2026) Introduced by Bruce Tarr

S 2080 establishes an enhanced state R&D tax credit to attract innovation companies, reducing business tax liability for qualifying research activities and increasing Massachusetts competitiveness.

Hearing rescheduled to 10/03/2025 from 10:00 AM-12:35 PM in Gardner Auditorium Hearing updated to New End Time
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Bill Summary · S 2080

Legislative bill overview

S 2080 proposes creating an enhanced research and development (R&D) tax credit in Massachusetts that goes beyond the existing R&D tax incentive program. The bill aims to make Massachusetts more competitive for attracting and retaining companies engaged in research and development activities by offering a more generous tax incentive structure.

Why is this important

R&D tax credits directly reduce operating costs for companies in innovation-intensive sectors, influencing business location decisions and investment patterns. Massachusetts competes with other states and countries for high-value technology, biotech, and advanced manufacturing companies, making tax incentives a key economic development tool.

Potential points of contention

  • Fiscal impact and cost to the state: The bill's revenue loss to Massachusetts must be weighed against claimed economic benefits; details on the credit's scope, size, and estimated cost are critical unknowns
  • Definition and verification of eligible R&D: Determining what activities qualify as R&D and preventing gaming or overstating expenses requires clear rules and enforcement mechanisms
  • Distributional fairness: Tax credits may disproportionately benefit large corporations or specific sectors while smaller businesses or non-R&D industries receive no equivalent support

Compiled from official sources — confirm details with the bill’s official record.

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