Relates to mandatory health insurance coverage for follow-up screening or diagnostic services for lung cancer

2025 Regular Session Introduced by Joe Addabbo and 7 co-sponsors

Expands the R&D sales tax exemption to include non-corporate entities primarily engaged in R&D (like LLCs and partnerships) starting Jan 1, 2026.

SUBSTITUTED BY A1195A

Summary — S 2000: “An Act to extend the research and development sales tax exemption”

Status snapshot
- Bill number: S 2000 (Commonwealth of Massachusetts)
- Filed: Jan 17, 2025 (Senate Docket No. 2345); Introduced/Read: June 10, 2025
- Status: Substituted by A1195A (May 29, 2025)
- Effective date (if enacted as written): January 1, 2026 (applies to qualifying purchases on or after that date)
- Sponsor (Senate): Paul R. Feeney

Purpose and intent
- To expand eligibility for an existing Massachusetts sales tax exemption for research and development (R&D) activity so that non‑corporate entities primarily engaged in R&D (for example, limited liability companies and partnerships) can claim the exemption on qualifying purchases.

Key provisions
1. Expansion of eligibility (amendments to Chapter 64H, Sections 6(r) and 6(s)):
- Adds the phrase “or any entity engaged primarily in research and development activities, including limited liability companies, partnerships, and other entities filing Massachusetts tax returns” to the current statutory exemption language that referenced manufacturing corporations.
- Permits the Department of Revenue (DOR) to certify “any other entity” as primarily engaged in R&D for purposes of the exemption.
2. Department of Revenue guidance and administrative requirements:
- Requires the DOR to issue guidance to help eligible non‑corporate entities apply for the exemption.
- Authorizes the DOR to require non‑corporate entities to submit an annual statement confirming that they are primarily engaged in R&D activities (i.e., an affirmative attestation/verification for continued eligibility).
3. Effective date:
- The expansion would take effect January 1, 2026 and apply to purchases made on or after that date.

Who would be affected
- Newly eligible: Non‑corporate business entities primarily engaged in R&D (LLCs, partnerships, other pass‑through entities that file Massachusetts tax returns).
- Existing beneficiaries: Manufacturing and R&D corporations already covered by the exemption remain eligible.
- Government: Massachusetts Department of Revenue (responsible for guidance, certification, and administration).
- Vendors and suppliers: Businesses making qualifying sales to newly eligible entities would make exempt sales where proper documentation/certification exists.
- Fiscal impact: Likely reduction in state sales tax receipts relative to current law (amount not specified in the bill). Administrative burden for DOR to develop guidance, certification procedures, and annual attestations.

Procedural/timeline notes
- The bill text sets January 1, 2026 as the operative date for expanded eligibility.
- Legislative record shows the Senate bill was ultimately substituted by an Assembly bill (A1195A) on May 29, 2025; that substitute will determine the measure’s final form if enacted.

Bottom line
S 2000 seeks to broaden an existing R&D sales‑tax exemption in Massachusetts to include non‑corporate R&D entities (LLCs, partnerships, etc.), with DOR certification and annual attestations to verify primary engagement in R&D. The change aims to extend tax relief to a wider set of R&D performers but would reduce sales tax revenues and require additional DOR administrative processes.