400 C.M.R. 10.06 – Claiming and Transferring the Credit

(1) An Eligible Company that has been issued a Final Certificate shall be allowed a tax credit against taxes imposed by M.G.L. chs. 62 and 63 for Eligible Production Costs not to exceed the amount specified in the Final Certificate. The total credits specified in the Final Certificate shall in no event exceed:
1. (a) 35% of the total in-state Payroll Costs;
2. (b) 25% of the Production and Performance Expenditures; and
3. (c) 25% of Transportation Expenditures.
(2) The Live Theater Tax Credit shall be allowed against the tax for the taxable period in which the credit is issued and any amount of the tax credit that exceeds the tax due for a taxable year maybe carried forward for not more than five succeeding tax years.
(3) An Eligible Company issued an Initial Certificate may assign, transfer or convey the tax credits, in whole or in part, by sale or otherwise to any individual or entity An Eligible Company seeking to assign, transfer, or convey tax credits must submit to the Commissioner a transfer application on a form prescribed by the Commissioner. The assignor shall provide any information as may be required by the Commissioner to administer and carry out the transfer of the tax credits. Upon confirmation that the assignor is in possession of a valid tax credit as described in the application, the Commissioner will issue a certificate to the assignee stating the amount of the credit assigned. The assignee of the tax credits may useacquired credits to offset up to 100% of the tax liabilities otherwise imposed pursuant to M.G.L. chs. 62 or 63. The assignee may apply the tax credits against taxes imposed on the assignee for notmore than five succeeding tax years from the date an Initial Certificate is firstissued by the Office. Such assignments shall be subject to any additional regulations or requirements established by the Commissioner.