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Massachusetts Budget Provides Credits for Cranberry Producers

The Massachusetts fiscal 2022 budget included a provision relevant to the state’s cranberry producers. There is now a tax credit available for taxpayers who are primarily engaged in cranberry production.

The credit is equal to 25% of the total qualified renovation expenditures incurred in the connection with the qualified renovation of a cranberry bog during the taxable year. The credit is up to $100,000 and is refundable.1

A qualified renovation is defined as “the renovation, repair, replacement, regrading or restoration of a cranberry bog for the cultivation, harvesting or production of cranberries or any other activity or action associated with the renovation of an abandoned cranberry bog; provided, however, that ‘qualified renovation’ shall not include the construction of facilities or structures for the processing of cranberries.”

The definition of a qualified renovation expenditure is “an expenditure or a cost directly incurred in connection with the qualified renovation of a cranberry bog.” However, it does not include costs associated with acquiring or purchasing property “for the construction of facilities or structures for the cultivation, harvesting or production of cranberries.”

Producers will need to file documentation outlining the qualified renovation expenditures in connection with the qualified renovation.

Cranberry producers should reach out to their tax professional for more information and to ensure they are maximizing this new credit.


1 The legislation also indicated that the producer may carry the credit forward for five subsequent tax years.
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