MA Life Sciences Tax Incentive Program

MA Life Sciences Tax Incentive Program

Funds Massachusetts life science startups with tax incentives linked to commercialization-focused innovation milestones.

Eligibility · United States · US-MA

The Massachusetts Life Sciences Tax Incentive Program is a competitive, state-administered refundable tax credit for life sciences companies conducting research, development, commercialization, or manufacturing activity in Massachusetts. Administered by the Massachusetts Life Sciences Center (MLSC), a quasi-public agency established under MGL Ch. 23I, the program deploys up to $40 million in tax incentives per annual cycle, with the 2026 cycle opening January 12 and closing March 31, 2026. Awards are issued under the Life Sciences Jobs Incentive Refundable Credit (MGL Ch. 62/63) and reduce a company's Massachusetts tax liability, with any excess refunded — distinguishing this from a simple nonrefundable credit.

Eligibility requires that applicants be registered to do business in Massachusetts, file a Massachusetts corporate tax return, employ at least 10 permanent Massachusetts full-time equivalents (35+ hours per week) as of December 31 of the application year, and remain in good standing with the state Department of Revenue, Department of Unemployment Assistance, and the Secretary of State. Hiring commitments must be sustained through December 31, 2028. Companies with fewer than 50 employees, those located in a Gateway Municipality, or those operating in a designated rural county (Barnstable, Berkshire, Bristol, Dukes, Franklin, Hampden, Hampshire, Nantucket, Plymouth, or Worcester) qualify under a reduced 5-FTE hiring commitment tier. Award sizes in this program range from approximately $50,000 to $5 million, calibrated to the scope and scale of the job commitments made. Applications are submitted via the Submittable portal, with awards typically announced in June following an April–June review period.

The program is sector-restricted to life sciences, broadly encompassing biotechnology, medical devices, diagnostics, pharmaceuticals, and related fields. For-profit companies are the primary eligible applicant class; universities and research organizations may participate in limited circumstances. Post-award compliance involves annual reporting on hiring and retention against committed headcounts, with MLSC authorized to access Department of Revenue data for verification and decertification as a remedy for non-compliance. Given the program's competitive structure, fixed annual pool, and multiyear hiring commitment requirement, applicants benefit most from demonstrating concrete job creation plans with durable Massachusetts operations.