An Act to extend the research and development sales tax exemption

This bill expands Massachusetts' sales tax exemption for research and development (R&D) purchases to include non-corporate entities like limited liability companies (LLCs) and partnerships. Previously, only manufacturing corporations qualified; the bill now explicitly covers "any entity engaged primarily in R&D activities" filing state tax returns. Non-corporate entities must annually confirm their primary R&D focus and may need to submit supporting documentation. The changes take effect January 1, 2026, applying to qualifying purchases made on or after that date.