Sen. Paul R. Feeney files bill to extend Massachusetts R&D sales tax exemption to non-corporate entities

Senator Paul R. Feeney filed a bill on Jan. 17, 2025, in the Massachusetts Senate to amend Chapter 64H of the Massachusetts General Laws to expand the sales tax exemption for research and development to non‑corporate entities, including limited liability companies and partnerships. The filing appears as Senate No. 2000, Docket No. 2345, in the One Hundred and Ninety‑Fourth General Court.

The bill would amend Section 6(r) and Section 6(s) of Chapter 64H to add language extending the exemption beyond manufacturing corporations to “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 activities. The bill directs the Department of Revenue to issue guidance to help eligible non‑corporate entities apply for the exemption and states that non‑corporate entities may be required to submit an annual statement confirming their primary engagement in research and development activities.

Why it matters: the proposal would change which business structures can claim the sales tax exemption for research and development purchases under state law. The bill sets an effective date of Jan. 1, 2026, and specifies that it would apply to qualifying purchases made on or after that date.

Details of the proposal include the specific insertion of non‑corporate entities into Section 6(r) and Section 6(s) of Chapter 64H and the Department of Revenue’s role in issuing guidance and certifying entities. The filing text does not include revenue estimates, committee referral, or votes; it is the legislative text submitted to the General Court. The bill text states the effective date and the scope of purchases covered but does not state any implementing regulations beyond the Department of Revenue guidance requirement.

The filing does not record committee action or adoption; it is a petition and bill referral filing in the legislative docket. Additional procedural steps in the General Court (committee referral, hearings, votes) are not detailed in the submitted text.

Proper names and references in the filing include Chapter 64H, Section 6(r) and 6(s) of the Massachusetts General Laws, the Department of Revenue, and Senate No. 2000 (Docket No. 2345). The filing lists Paul R. Feeney of Bristol and Norfolk as the petitioner.

Next steps: the bill’s text would allow non‑corporate entities to seek the exemption beginning Jan. 1, 2026, if the bill is enacted and the Department of Revenue issues the guidance described in the filing.