Does your company plan to hire, expand, or invest in Research & Development (R&D) in 2026? You might benefit from the Massachusetts Life Science Center (‘MLSC’) Tax Incentive Program. The MLSC is a quasi-government economic agency which was created by the state to support innovation and research for life sciences companies which operate in Massachusetts. Find out who’s eligible, what benefits are available, and how to take advantage.

Why It Matters

Taking advantage of the MLSC Tax Incentive Program can significantly reduce the cost of expanding your life sciences operations in Massachusetts. Eligible companies can lower their tax burden, fund additional R&D, and accelerate hiring, helping you stay competitive in a fast-moving industry while maximizing the impact of your 2026 investments.

What is the Massachusetts Life Science Credit?

The Massachusetts Life Science Center (MLSC) provides several incredibly beneficial tax incentives to life sciences companies. These benefits require submission of an application to the MLSC, approval from the MLSC, and ongoing documentation submitted to the MLSC to ensure credit criteria is met. The purpose of this article is to describe the potential incentives, the application process, and the on-going documentation requirements.

What is the application process?

Applications are due by noon EST on March 31, 2026, and are submitted via the MLSC’s web-based application portal. If an application is submitted after the deadline; it will not be considered. Following review of the application; the MLSC staff will recommend application to receive awards to the MLSC Board of Director. 

Key Criteria

The MLSC uses several criteria when reviewing applications; including:

• Applicants must be registered to do business in Massachusetts.
• Applicants must employ at least 10 full-time employees.
• Applicants must commit to hiring at least 10 net new jobs in the calendar 2026 year and keeping those jobs until end of 2028.
• Applicants geographic distribution of life science operations in Massachusetts.
• Applicants use of life sciences technology and industries supported by MLSC
• Diversity among businesses at different stages of product development/commercialization. 

Available Incentives

The MLSC has full discretion over the awards provided to an applicant. Applicants may select one or a combination of nine incentives available:

1. Life Science investment tax credit (refundable)
2. FDA user fees credit (refundable)
3. Extension of net operating losses from 5 to 15 years
4. 90% refund of already-available research credits.
5. Life Sciences Research Credit
6. Deduction of qualified orphan drug expenses
7. Designation as R&D company for sales tax purposes
8. Life Science job incentive credit (refundable, but requires the creation of at least 50 net new jobs)

On-Going Documentation

Applicants being approved to receive an award enter into an incentive agreement with the MLSC. Some incentives relating to job creation/retention will require the agreement to include documentation and claw-back provisions. Documentation will need to be submitted annually during the award timeframe to ensure hiring/job creation goals are met. 

If hiring/job creation goals are not met, or the applicant receiving the award is unable to provide documentation to substantiate the terms of the agreement; then any tax credit/incentive offered to the applicant will be revoked. If the applicant has filed a Massachusetts return taking advantage of a tax credit offered by MLSC, and the terms of the MLSC agreement are not met; then the applicant will be responsible for repayment of the tax credit, plus applicable interest.