Massachusetts Life Sciences Tax Incentive Program

Massachusetts Life Sciences Tax Incentive Program

Helps life science companies in Massachusetts hire and retain permanent talent with refundable state tax incentives.

The Massachusetts Life Sciences Tax Incentive Program, administered by the Massachusetts Life Sciences Center (MLSC) — a quasi-public state agency established under MGL Chapter 23I — provides refundable state tax credits to life sciences companies that commit to hiring and retaining permanent Massachusetts employees. The program allocates up to $40 million in tax credits annually under MGL Chapters 62 and 63. Credits are refundable: amounts exceeding the company's Massachusetts tax liability are paid back in cash. Awards are made through a competitive annual cycle; the 2026 cycle opened January 12, 2026, with a deadline of March 31, 2026, and award notifications expected in June 2026.

Eligibility requires a company to be registered to do business in Massachusetts, filing a Massachusetts corporate tax return for the prior year, and currently employing at least 10 permanent Massachusetts full-time employees (working 35 or more hours per week) as of December 31 of the base year. The minimum new-hire commitment is 10 FTEs for most applicants, reduced to 5 FTEs for companies with fewer than 50 total employees, companies located in a Gateway Municipality, or companies in designated rural counties (Barnstable, Berkshire, Bristol, Dukes, Franklin, Hampden, Hampshire, Nantucket, Plymouth, and Worcester). Recipients must maintain hired employees through December 31, 2028, and submit annual reports to MLSC verifying retention.

Applications are submitted via the Submittable portal at masslifesciences.submittable.com. The program is strictly limited to life sciences companies — encompassing biotechnology, medical devices, biopharmaceuticals, and related manufacturing. MLSC has invested over $2.6 billion in the Massachusetts life sciences sector since 2007. Companies considering the program should attend one of the published information sessions (January 22, February 6, March 2, or March 5 in the 2026 cycle) and contact taxprogram@masslifesciences.com for guidance.