Alert
Massachusetts Life Sciences Companies Tax Incentives Application Due March 31, 2026
The Massachusetts Life Sciences Center (MLSC) Tax Incentive Program is one of the Commonwealth’s most powerful tools for fostering growth in the life sciences sector. The program is designed to support life sciences companies engaged in research and development, commercialization, and manufacturing. The program rewards job creation in Massachusetts and is available to companies of all sizes.
The current application window for interested parties closes effective 2:00 p.m. Eastern Standard Time on Tuesday, March 31, 2026.
What Is the MLSC Tax Incentive Program?
The MLSC Tax Incentive Program offers a mix of credits ranging from income tax credits—both non-refundable and refundable—to special deductions, sales tax exemptions, and more. A company can apply for more than one tax incentive.
Incentives Available Under the MLSC Tax Incentive Program
- Life sciences investment tax credit
- FDA user fees credit
- Extension of net operating losses from five to 15 years
- 90% refund of already-available excess Massachusetts General Laws Section 38M research credits
- Massachusetts General Laws Section 38W life sciences research credit
- Deduction for qualified orphan drug expenses
- Designation as an R&D company for sales tax purposes
- Sales tax exemption for certain property
- Life sciences jobs incentive refundable credit
The flexibility of the program is unique among state incentive programs because it provides real-time cash benefits to companies that may be in a growth phase and offers the unique ability to meaningfully impact cash flows and investment decisions.
How Much Money Is Available in the MLSC Tax Incentive Program?
Up to $40 million is available in the current application round, with incentives offered to companies that commit to creating and retaining high‑quality jobs within Massachusetts.
How Does a Company Qualify for the MLSC Tax Incentive Program?
The program provides a minimum base award of $18,000 per new job created in 2026, and then retained or maintained for a three-year compliance period. Manufacturing roles, smaller companies, companies located in outlying counties, and companies new to Massachusetts may all be eligible for additional awards per new job at the discretion of the awarding body.
5 Criteria to Qualify for the MLSC Tax Incentive Program
The MLSC outlines strict eligibility criteria. Applicants must:
- Be registered to do business in Massachusetts.
- Be in good standing with the Massachusetts Department of Revenue, Department of Unemployment Assistance, and the Secretary of the Commonwealth.
- File corporate tax returns in the state, including intent to file a return for the applicant’s 2025 tax year.
- Employ at least 10 full‑time Massachusetts employees.
- Commit to creating and retaining new jobs for multi‑year periods. The specific number of required net new jobs varies by company size and location. However, the minimum threshold generally ranges from five to 10 new full-time jobs.
Beyond eligibility, companies must also be prepared for significant data validation and review. The MLSC conducts a detailed assessment before certification and may verify award‑related tax information through the Department of Revenue. Successful applicants can claim awarded credits following MLSC approval.
How We Can Help
We guide companies through every step of the MLSC Tax Incentive Program, including:
- Assessing eligibility. We evaluate whether your current operations, headcount, and planned hiring meet the program’s baseline requirements, including employee counts, Massachusetts footprint, and job creation commitments.
- Aligning hiring plans with program requirements. The program ties tax incentives to multi‑year job creation and retention. We consult with our clients to ensure hiring forecasts and operational forecasts support overall business plans and objectives while also enabling compliance with the requirements of the program.
- Preparing and submitting the MLSC application. The application is comprehensive and requires accurate reporting of financial, tax, and employment data. Our team ensures responses are complete, consistent, and aligned with MLSC expectations, so companies enter the review process in the strongest possible position.
- Arranging supporting documentation and compliance. We work with clients to compile necessary certificates of good standing, payroll reports, tax filings, and other supporting documents required during the application review.
- Providing credit utilization and ongoing support. Once credits are awarded, we advise on the timing and method of claiming them on Massachusetts tax returns and help clients document compliance to mitigate future audit risk or potential recapture.
Why Clients Rely on Us as Trusted Advisors
Our team is deeply embedded in the Massachusetts life sciences ecosystem and stays current with evolving program requirements, legislative changes, and any updates to administrative guidance. Monitoring MLSC updates allows us to outline the program’s expectations into actionable strategies that align with clients’ hiring plans, operational goals, and long‑term growth initiatives.
Our team understands both the technical tax requirements and the strategic operational context of life sciences companies. Partnering with us empowers companies to confidently pursue incentives that support expansion, investment, and innovation.
If your company is considering applying in the current or future MLSC cycles, we’re ready to help you navigate the process from assessment through certification and credit utilization—with clarity, accuracy, and industry‑specific insight.