Livingstone files bill to extend research and development sales tax exemption to LLCs, partnerships

Livingstone files bill to extend research and development sales tax exemption to LLCs, partnerships Rep. Jay D. Livingstone filed legislation Jan. 15 that would extend Massachusetts' sales tax exemption for research and development activity to noncorporate entities, including limited liability companies and partnerships, if the measure becomes law. The bill, House No. 3168, would amend Sections 6(r) and 6(s) of Chapter 64H of the Massachusetts General Laws to add the words “or any entity engaged primarily in research and development activities, including limited liability companies, partnerships, and other entities filing Massachusetts tax returns,” and to allow the Department of Revenue to certify other entities as primarily engaged in research and development. The legislation sets an effective date of Jan. 1, 2026, and would apply to qualifying purchases made on or after that date. Under the proposal, the Department of Revenue would issue guidance to help eligible noncorporate entities apply for the exemption and may require such entities to submit an annual statement confirming their primary engagement in research and development activities. The bill does not specify estimated fiscal impacts, revenue changes, or detailed certification criteria; those would be determined later in committee review or DOR guidance. The filing documents list Representative Jay D. Livingstone of the 8th Suffolk as the petitioner and indicate the bill is referenced to the Revenue committee. The text of the bill is limited to the statutory amendments, the directive for DOR guidance, and the January 2026 effective date; it does not include legislative findings, appropriations, or explicit enforcement language beyond the certification and guidance provisions. If enacted, the change would broaden the category of entities eligible for the sales tax exemption beyond manufacturing corporations and research-and-development corporations to include noncorporate business forms that the Department of Revenue certifies or that meet the statutory language. The bill, as filed, is a proposal and has not been enacted; it must pass the House and Senate and be signed by the governor before becoming law. The next step recorded in the filing is referral to the Massachusetts House Revenue Committee for consideration, hearings, and potential amendment.