Article: 50337

Overview

The Massachusetts Economic Opportunity Area Credit (EOAC) is primarily intended for business entities operating in designated Economic Opportunity Areas (EOAs) under the Massachusetts Economic Development Incentive Program (EDIP). However, individual taxpayers may claim this credit under certain conditions typically through a pass-through entity such as an S corporation, partnership, or LLC.

Eligibility

You may be eligible to claim the EOAC on your Massachusetts individual income tax return if:

• You are a partner, shareholder, or member of a pass-through entity (like an S corporation or partnership) that:
  • Operates in an approved Economic Opportunity Area.
  • Has a certified EDIP project approved by the Economic Assistance Coordinating Council (EACC).
  • Earned and allocated a portion of the EOAC to you as part of your Schedule K-1 or equivalent statement.
• The entity reported your share of the credit to you for use on your personal return.

Credit Details

• The credit is non-refundable, but any unused portion may be carried forward for up to 10 years.
• You must retain documentation (such as your K-1 and the entity’s certification) for verification.
• If the credit exceeds your state tax liability, the excess cannot be refunded, only carried forward.

Add Schedule Economic Opportunity Area Credit

To add the Schedule Economic Opportunity Area Credit:

1. Go to State Taxes.
2. Click I’d like to see the forms I’ve filled out or search for a form.
3. Select Massachusetts.
4. Click on the Credits tab.
5. Click on Economic Opportunity Area Credit to add and open the form.
6. Enter your information and click Save.

Further Information

For detailed information, refer to the Massachusetts Economic Opportunity Area Credit (EOAC) website.